Novus Loyalty Ltd Management Discussions

The following discussion and analysis of our financial condition and results of operations for the Fiscal Year 2025, Fiscal Year 2024 and Fiscal Year 2023 is based on, and should be read in conjunction with, our Restated Financial Information, including the schedules, notes and significant accounting policies thereto, included in the chapter titled "Restated Financial Information " beginning on page 186 of this Draft Red Herring Prospectus. Our Restated Financial Information has 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 information included in this Draft Red Herring Prospectus. You should also read the section titled "Risk Factors" beginning on page 31 of this Draft Red Herring Prospectus, which discusses a number offactors, 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 "we", "us" or "our" refe Rs to Novus Loyalty Limited, our Company. Unless otherwise indicated, financial information included herein are based on our "Restated Financial Information" for the Fiscal Year 2025, Fiscal Year 2024 and Fiscal Year 2023 included in this Draft Red Herring Prospectus beginning on page 186 of this Draft Red Herring Prospectus.

Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "Forward Looking Statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important facto Rs 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.

Business Overview

Our company is a technology-driven company offering loyalty and rewards solutions tailored for industries such as Fintech, E-commerce, software, Finance, Banking, FMCG and Real Estate. Focused on enhancing customer engagement, retention, and acquisition, our company has developed a modern, scalable loyalty platform using the latest technology stack. This platform delive Rs comprehensive, data-driven solutions that help enterprises build meaningful relationships with their customers. The company provides both customizable and ready-to-use program models, including point-based rewards, event-triggered campaigns, cashback systems, purchase-linked promotions, and digital vouchers.

For more details, please refer chapter titled "Our Business" beginning on page 108 of this Draft Red Herring Prospectus.

Key Performance Indicato Rs of Our Company

As per Restated Financial Information

(T in Lakhs, otherwise mentioned)

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Revenue from Operations (1)	10,462.47	7,329.18	5,959.41
EBITDA (2)	568.68	481.69	227.19
EBITDA Margin (%) (3)	5.44%	6.57%	3.81%
PAT (4)	358.48	296.24	54.67
PAT Margin (%) (5)	3.43%	4.04%	0.92%
Return on Equity (%) (6)	31.74%	36.94%	8.73%
Return on capital employed (%) (7)	40.40%	42.76%	11.39%
Debt to Equity Ratio (times) (8)	-	0.09	0.54
Current Ratio (times) (9)	9.12	4.20	1.79

*As certified by Peer review Auditors, by way of their certificate dated September 20, 2025.

Notes:

(1) Revenue from operations means revenue from sales and other operating revenues.

(2) EBITDA is calculated as Profit before tax + Depreciation + Finance Cost.

(3) ‘EBITDA Margin is calculated as EBITDA divided by Revenue from Operations.

(4pat is calculated as Profit before tax - Tax Expenses.

<5) <pA t Margin is calculated as PA T for the year divided by Revenue from Operations.

(6 Return on Equity is a ratio of Profit after Tax and Average Shareholder Equity.

(7 Return on Capital Employed is calculated as follows: Profit before tax + Finance Costs (EBIT) divided by (Tangible Net Worth + Total Debt + Deferred Tax Liabilities).

(8 Debt to Equity ratio is calculated as Long-Term Debt + Short-Term Debt divided by equity.

(9 Current Ratio is calculated by dividing Current Assets to Current Liabilities.

Significant Developments after March 31, 2025

In the opinion of the Board of Directorof our Company, since the date of the financial period as disclosed in this Draft 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 next twelve months, except for the following events which do not have a material impact on the profitability of our Company.

The membe Rs of our Company approved the proposal of Board of Directorto raise funds through initial public offering in the EGM held on September 09, 2025.

Statement of Significant Accounting Policies

For details in respect of Statement of Significant Accounting Policies, please refer to the chapter titled "Restated Financial Information" beginning on page 186 of this Draft Red Herring Prospectus.

Key Components of the Companys Balance Sheet

The following table sets forth select financial data derived from our restated statement of Balance Sheet as at Fiscal 2025, 2024, and 2023:

(in Lakhs)

Particulars	As at
	March 31, 2025	March 31, 2024	March 31, 2023
Liabilities
Long-term Borrowings	-	-	-
Short-Term Borrowings	-	81.90	352.95
Trade Payables	8.25	18.16	178.45
Other Current Liabilities	53.48	99.41	110.15
Short-term provisions	90.06	68.77	2.02
Assets
Property, Plant & Equipment and Intangible Assets	75.83	76.68	142.62
Non-Current Investment	-	-	8.00
Other Non-current Assets	4.50	4.50	4.50
Inventories	92.91	50.19	52.76
Trade receivables	113.90	100.72	286.03
Short-term loans and advances	983.71	965.98	700.09

Short-Term Borrowings

Short-term borrowings decreased by Rs271.05 lakhs, from Rs352.95 lakhs in fiscal 2023 to Rs81.90 lakhs in fiscal 2024. This decline was primarily due to the company repaying loans from banks and financial institutions. Furthermore, during fiscal 2025, the remaining loan of Rs81.90 lakhs was fully repaid, reducing the short-term borrowings to NIL.

Trade Payables:

Trade payables decreased by Rs160.29 lakhs, from Rs178.45 lakhs in FY 2023 to Rs18.16 lakhs in FY 2024. Furthermore, during FY 2025, trade payables declined further by Rs9.91 lakhs, reaching Rs8.25 lakhs. This continued decline is primarily attributable to the nature of the companys business, wherein procurement is typically carried out either on an advance payment basis or through payment at the time of delivery.

Other Current Liabilities

Other current liabilities decreased by Rs10.75 lakhs, from ^110.15 lakhs in FY 2023 to Rs99.41 lakhs in FY 2024. This reduction was primarily due to a decrease in salary & wages payable by Rs38.42 lakhs and a decline in advances from custome Rs by Rs13.75 lakhs, partially offset by an increase in statutory dues payable by Rs41.67 lakhs.

In FY 2025, other current liabilities further declined by Rs45.93 lakhs, from Rs99.41 lakhs in FY 2024 to Rs53.48 lakhs. This decrease was mainly driven by a reduction in statutory dues payable by Rs37.23 lakhs and salary & wages payable by Rs7.79 lakhs.

Short-term Provisions:

Short-term provisions increased by Rs66.74 lakhs, from Rs2.02 lakhs in FY 2023 to Rs68.77 lakhs in FY 2024, primarily due to an increase in income tax provision amounting to Rs67.96 lakhs. In FY 2025, short-term provisions further increased by Rs21.29 lakhs, from Rs68.77 lakhs in FY 2024 to Rs90.06 lakhs, mainly on account of a rise in income tax provision by Rs20.43 lakhs.

Property, Plant & Equipment and Intangible Assets:

Property, Plant & Equipment and Intangible Assets decreased by Rs65.94 lakhs, from Rs142.62 lakhs in FY 2023 to Rs76.68 lakhs in FY 2024. This decline was primarily due to depreciation of Rs72.44 lakhs, partially offset by additions to PPE amounting to Rs6.50 lakhs during the year.

In FY 2025, the balance further declined marginally by Rs0.85 lakhs, from Rs76.68 lakhs to Rs75.83 lakhs, mainly due to depreciation of Rs40.07 lakhs, which was largely offset by additions to PPE totaling Rs39.22 lakhs.

Non-Current Investment

Non-current investments were reduced to NIL in FY 2024 following the sale of the companys investment in shares valued at Rs8.00 lakhs during the year.

Other Non-Current Assets

Non-current assets remained constant at Rs4.50 lakhs in Fiscal 2023, 2024, and 2025, as this primarily comprises security deposits given by the company.

Inventories:

Inventories increased by Rs42.72 lakhs, from Rs50.19 lakhs in Fiscal 2024 to Rs92.91 lakhs in Fiscal 2025, primarily due to a rise in the companys level of operations. Between Fiscal 2023 and Fiscal 2024, inventory levels remained largely stable, with a marginal decrease from Rs52.76 lakhs to Rs50.19 lakhs.

Trade receivables:

Trade receivables decreased significantly by Rs185.31 lakhs, from Rs286.03 lakhs in Fiscal 2023 to Rs100.72 lakhs in Fiscal 2024, indicating improved collection efficiency or lower sales on credit. In Fiscal 2025, trade receivables increased slightly by Rs13.18 lakhs to ^113.90 lakhs, which may be attributed to a rise in credit sales in line with increased operational activity.

Short-term Loans & Advances:

Short-term loans and advances increased by Rs265.89 lakhs, from Rs700.09 lakhs in Fiscal 2023 to Rs965.98 lakhs in Fiscal 2024, primarily due to an increase in inter-corporate advances of Rs435.00 lakhs. This increase was partially offset by a decrease in loans and advances to othe Rs by Rs103.62 lakhs, advances to vendo Rs by Rs8.70 lakhs, and balances with revenue authorities by Rs55.54 lakhs.

In Fiscal 2025, short-term loans and advances further increased by Rs17.74 lakhs, reaching Rs983.71 lakhs. This was mainly driven by an increase in inter-corporate advances of Rs35.08 lakhs and balances with revenue authorities of Rs8.86 lakhs, partially offset by a decrease in loans and advances to othe Rs by Rs25.50 lakhs.

Results of our Operation

The following discussion on results of operations should be read in conjunction with the Restated Financial Information of our Company the Fiscal Year 2025, Fiscal Year 2024 and Fiscal Year 2023:

Particulars	For the Year Ended
	March 31, 2025	% of Total Income	March 31, 2024	% of Total Income	March 31, 2023	% of Total Income
Revenue From Operation	10,462.47	100.00 %	7,329.18	99.57%	5,959.41	99.98%
Other Income	0.12	0.00%	32.02	0.43%	1.25	0.02%
Total Income	10462.59	100.00 %	7361.20	100.00%	5960.66	100.00%
Expenditure
Cost of Material Consumed	0.00	0.00%	0.00	0.00%	0.00	0.00%
Cost of Service	3,507.00	33.52%	2,245.54	30.51%	1,844.63	30.95%
Purchases of Stock in Trade	4,251.85	40.64%	2,628.31	35.70%	1,898.46	31.85%
Changes in Inventories of Finished Goods, WIP & Stock-in-trade	(42.72)	(0.41%)	2.57	0.03%	(20.60)	(0.35%)
Employee Benefits Expense	417.11	3.99%	479.48	6.51%	903.04	15.15%
Finance Cost	22.69	0.22%	35.75	0.49%	35.02	0.59%
Depreciation and Amortisation Expenses	40.08	0.38%	72.44	0.98%	113.75	1.91%
Other Expenses	1760.56	16.83%	1491.60	20.26%	1106.68	18.57%
Total Expenditure	9956.56	95.16%	6955.68	94.49%	5880.99	98.66%
Profit/(Loss) Before Tax	506.03	4.84%	405.52	5.51%	79.67	1.34%
Tax Expense:
Tax Expense for Current Year	135.29	1.29%	106.46	1.45%	38.73	0.65%
Short/(Excess) Provision of Earlier Year	0.00	0.00%	0.00	0.00%	0.00	0.00%
Deferred Tax	12.27	0.12%	2.83	0.04%	-13.73	-0.23%
Net Current Tax Expenses	147.55	1.41%	109.28	1.48%	25.00	0.42%
Profit/(Loss) from continued operations after tax	358.48	3.43%	296.24	4.02%	54.67	0.92%

Facto Rs Affecting our Results of Operations

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factors" beginning on page 31 of this Draft Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous facto Rs including the following:

• Changes in laws and regulations relating to the sectors/areas in which we operate;

• Inability to identify or effectively respond to farmers needs, expectations or market practise in a timely manner;

• Our ability to successfully implement our growth strategy and expansion plans, and to successfully provide end to end services;

• Our failure to keep pace with rapid changes in technology;

• Our ability to meet our further capital expenditure requirements;

• Our ability to attract and retain qualified personnel;

• Conflict of Interest with Promoters, the promoter group and other related parties;

• Changes in political and social conditions in India, the monetary and interest rate policies of India and other countries;

• Volatility of loan interest rates and inflation;

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

• Changes in government policies and regulatory actions that apply to or affect our business;

• Our inability to maintain or enhance our brand recognition;

Key Components of the Companys Profit and Loss Statement

Revenue from operations: Revenue from operations primarily comprises sale of services, including redemption of loyalty points, sale of vouchers, technology-related services, and merchant promotions.

Other Income: Other Income includes interest income, gratuity reversal, interest on IT refund and leave encashment etc.

Expenses: The Companys expenses consist of Cost of Services, Purchases of Stock-in-Trade, Changes in Inventories, Employee Benefit Expenses, Finance Cost, Depreciation and Amortization Expense, Other Expenses, and Tax expenses.

Cost of Services: This includes cost of services such as merchant promotion expenses, loyalty program execution costs, and other related expenditures.

Purchases of stock in trade: This primarily includes the cost of coupons and vouche Rs procured by the company.

Employee Benefits Expense: Employee benefit expenses include Salaries & Wages, Directors Remuneration, Gratuity Expenses, Leave Encashment Expenses, Employee Training Expenses, Contribution to Funds, and Staff Welfare Expenses.

Finance Cost: Finance Cost includes Interest Expenses and Other Borrowing Costs.

Depreciation and Amortization Expense: We recognize Depreciation and Amortization expense on a WDV basis as per the rates outlined in the Companies Act, 2013.

Other Expenses: Other expenses include Audit Fees, Business Promotion Expenses, Infrastructure Costs, Conveyance expenses, Rent Expenses, Marketing Expenses, Software Licenses, Professional Fees, etc.

Fiscal 2025 Compared with Fiscal 2024

Revenue from Operation

Revenue from operations increased by 42.75% from Rs7,329.18 lakhs in Fiscal 2024 to Rs10,462.47 lakhs in Fiscal 2025, primarily due to an increase in the scale of operations and growth across key business segments. The Company witnessed growth in all major revenue streams, which contributed to the overall increase in its top line in Fiscal 2025, as compared to Fiscal 2024.

The segment-wise growth in revenue is set out below:

• Revenue from technology services increased by 3.30% from Rs700.72 lakhs in Fiscal 2024 to Rs723.83 lakhs in Fiscal 2025.

• Revenue from redemption of loyalty points increased by 44.84% from Rs3,185.98 lakhs in Fiscal 2024 to Rs4,614.65 lakhs in Fiscal 2025.

• Revenue from merchant promotions increased by 85.07% from Rs298.02 lakhs in Fiscal 2024 to Rs648.36 lakhs in Fiscal 2025.

• Revenue from sale of digital vouche Rs increased by 44.74% from Rs1,383.50 lakhs in Fiscal 2024 to Rs4,475.63 lakhs in Fiscal 2025.

( Rs in lakhs)

Particulars	During the Fiscal		Increase
	2025	2024	Amount	%
Technology	723.83	700.72	23.11	3.30%
Redemption Revenue	4,614.65	3,185.98	1,428.67	44.84%
Merchant Promotions	648.36	350.34	298.02	85.07%
Digital Vouchers	4,475.63	3,092.13	1,383.50	44.74%

Other Income

Other income significantly decreased by 99.62%, from t32.02 lakhs in Fiscal 2024 to t0.12 lakhs in Fiscal 2025. This decline was primarily due to the absence of one-time income items recorded in Fiscal 2024, including a gratuity expense reversal of t20.49 lakhs, as well as decreases in other miscellaneous income by t7.62 lakhs, interest on income tax refund by t2.54 lakhs, and leave encashment income by t1.22 lakhs in Fiscal 2025.

Cost of Services

Cost of services increased by 56.18%, from t2,245.54 lakhs in Fiscal 2024 to t3,507.00 lakhs in Fiscal 2025. This increase was primarily driven by the growth in the companys level of operations.

Purchase of Stock in Trade

The purchase of stock in trade has increased by 61.77% from t2,628.31 lakhs in Fiscal 2024 to t4,251.85 lakhs in Fiscal 2025. This increase was primarily driven by the growth in the companys level of operations.

Change in Inventories of finished goods, WIP & Stock-in-trade

The inventory has increase by t42.72 lakhs from t50.19 lakhs in Fiscal 2024 to t92.91 lakhs in Fiscal 2025. This increase was primarily driven by the growth in the companys level of operations.

Employee Benefit Expenses

Employee benefit expenses had decreased by 13.01% from t479.48 Lakhs in Fiscal 2024 to t417.11 Lakhs in Fiscal 2025. This was primarily due to decrease in Salaries & Wages from t417.87 Lakhs in Fiscal 2024 to t351.49 Lakhs in Fiscal 2025.

Finance Cost

Finance Cost had decreased by 36.52% from t35.75 Lakhs in Fiscal 2024 to t22.69 Lakhs in Fiscal 2025. This was primarily due to a decrease in interest on borrowings from bank from t32.63 Lakhs in Fiscal 2024 to t18.30 Lakhs in Fiscal 2025. These expenses decreased primarily due to a reduction in Total Borrowings from t81.90 Lakhs in Fiscal 2024 to t NIL in Fiscal 2025.

Depreciation and Amortization Expenses

Depreciation had decreased by 44.68% from t72.44 Lakhs in Fiscal 2024 to t40.08 Lakhs in Fiscal 2025.

Other Expenses

Other expenses increased by 18.03%, from t1,491.60 lakhs in Fiscal 2024 to t1,760.56 lakhs in Fiscal 2025. This increase was primarily driven by higher business promotion expenses by t245.10 lakhs, infrastructure costs by t94.17 lakhs, rent by t13.25 lakhs, repair and maintenance expenses by t5.60 lakhs, and online promotion expenses by t10.81 lakhs. These increases were partially offset by a reduction in marketing expenses by t108.86 lakhs and foreign travel expenses by t8.51 lakhs.

Tax Expenses

The Companys tax expenses had increased by 35.02% from t109.29 lakhs in Fiscal 2024 to t147.55 Lakhs in Fiscal 2025. This was on account of increase in current tax expenses from t106.46 lakhs in Fiscal 2024 to t135.29 lakhs in Fiscal 2025 and increase in deferred tax expenses from t2.83 lakhs in Fiscal 2024 to t12.27 lakhs in Fiscal 2025.

Profit after Tax

In Fiscal 2025, the Company reported a net profit of t358.48 lakhs attributable to the owners, an increase from t296.24 lakhs in Fiscal 2024. The growth in profit after tax was primarily driven by an increase in the level of operations and overall business growth. The net profit margin remained relatively stable at 1.41% in Fiscal 2025, compared to 1.49% in Fiscal 2024.

Fiscal 2024 Compared with Fiscal 2023

Revenue from Operation

Revenue from operations increased by 22.99%, from Rs5,959.41 lakhs in Fiscal 2023 to Rs7,329.18 lakhs in Fiscal 2024. The growth was primarily driven by an increase in business volumes across key segments. In Fiscal 2025, revenue from operations further increased, supported by continued expansion in business operations and higher demand for the Companys services. The segment-wise details of revenue growth for Fiscal 2025 as compared to Fiscal 2024 are set out below:

• Revenue from technology services increased by Rs26.42 lakhs or 3.92%, from Rs674.30 lakhs in Fiscal 2024 to Rs700.72 lakhs in Fiscal 2025.

• Revenue from redemption of loyalty points increased by Rs349.93 lakhs or 12.34%, from Rs2,836.05 lakhs in Fiscal 2024 to Rs3,185.98 lakhs in Fiscal 2025.

• Revenue from merchant promotions increased by Rs10.69 lakhs or 3.15%, from Rs339.65 lakhs in Fiscal 2024 to Rs350.34 lakhs in Fiscal 2025.

• Revenue from sale of digital vouche Rs increased by Rs982.73 lakhs or 46.59%, from Rs2,109.40 lakhs in Fiscal 2024 to Rs3,092.13 lakhs in Fiscal 2025.

( Rs in lakhs)

Particulars	Fiscal		Increase
	2025	2024	Amount	%
Technology	700.72	674.3	26.42	3.92%
Redemption Revenue	3,185.98	2,836.05	349.93	12.34%
Merchant Promotions	350.34	339.65	10.69	3.15%
Digital Vouchers	3,092.13	2,109.4	982.73	46.59%

Other Income

Other income had increased significantly by 2,459.44% from Rs1.25 Lakhs in Fiscal 2023 to Rs32.02 Lakhs in Fiscal 2024 due to reversal of gratuity expenses in Fiscal 2024 of Rs20.49 lakhs, increase in other income by Rs6.70 lakhs, interest on IT refund by Rs2.54 lakhs.

Cost of Services

Cost of services increased by 21.73%, from Rs1,844.63 lakhs in Fiscal 2023 to Rs2,245.54 lakhs in Fiscal 2024. This increase was primarily driven by the growth in the companys level of operations.

Purchase of Stock in Trade

The purchase of stock in trade has increased by 38.44% from Rs1,898.46 lakhs in Fiscal 2023 to Rs2,628.31 lakhs in Fiscal 2024. This increase was primarily driven by the growth in the companys level of operations.

Change in Inventories of finished goods, WIP & Stock-in-trade

The inventory has decreased by Rs2.57 lakhs from Rs52.76 lakhs in Fiscal 2023 to Rs50.19 lakhs in Fiscal 2024. This increase was primarily driven by the growth in the companys level of operations.

Employee Benefit Expenses

Employee benefit expenses had decreased by 46.90% from Rs903.04 Lakhs in Fiscal 2023 to Rs479.48 Lakhs in Fiscal 2024. This was primarily due to a decrease in Salary & Wages by Rs366.23 Lakhs, directors remuneration by Rs8.00 Lakhs, gratuity expenses by Rs12.89 lakhs, employee training expenses from Rs17.67 lakhs in Fiscal 2023 to Rs Nil in Fiscal 2024.

Finance Cost

Finance cost increased by 2.07%, from Rs35.02 lakhs in Fiscal 2023 to Rs35.75 lakhs in Fiscal 2024. This increase was primarily due to a rise in interest expenses by Rs1.34 lakhs, partially offset by a decrease in other borrowing costs by Rs0.62 lakhs

Depreciation and Amortization Expenses

Depreciation had decreased by 36.32% from Rs113.75 lakhs in Fiscal 2023 to Rs72.44 Lakhs in Fiscal 2024.

Other Expenses

Other expenses increased by 34.78%, from Rs1,106.68 lakhs in Fiscal 2023 to Rs1,491.60 lakhs in Fiscal 2024. This increase was primarily driven by higher marketing expenses by Rs249.18 lakhs, infrastructure costs by Rs182.16 lakhs, and business promotion expenses by Rs16.63 lakhs. These increases were partially offset by a reduction in professional fees and service charges by Rs15.19 lakhs and bad debts written off by Rs18.45 lakhs during Fiscal 2024.

Tax Expenses

The Companys tax expenses had increased by 337.16% from Rs25.00 lakhs in Fiscal 2023 to Rs109.29 lakhs in Fiscal 2024. This was on account of increase in current tax expenses from Rs38.73 lakhs in Fiscal 2023 to Rs106.46 lakhs in Fiscal 2024 and increase in deferred tax expenses from Rs13.73 lakhs in Fiscal 2023 to Rs2.83 lakhs in Fiscal 2024.

Profit after Tax

In Fiscal 2024, the Company reported a net profit of Rs296.23 lakhs attributable to the owners, a significant increase from Rs54.67 lakhs in Fiscal 2023. The net profit margin improved to 1.49% in Fiscal 2024 from 0.42% in Fiscal 2023. This improvement was primarily driven by a reduction in depreciation expense as a percentage of revenue, which decreased by 0.10%, from 0.59% in Fiscal 2023 to 0.49% in Fiscal 2024. Additionally, finance costs declined by 0.92%, from 1.91% to 0.99%, primarily due to partial repayment of borrowings during the year.

Particulars	For the financial period ended				Decrease in %
	March 31, 2024	% of revenue from	March 31, 2023	% of revenue from
Revenue from operations	7,329.18		5,959.41
Depreciation and amortisation	72.44	0.99%	113.75	1.91%	0.92%
Finance Cost	35.75	0.49%	35.02	0.59%	0.10%

Cash Flows

( Rs in Lakhs)

Particulars	For the Year Ended March 31st,
	2025	2024	2023
Net profit before tax	506.03	405.52	79.67
Operating profit before working capital changes	573.08	489.77	254.40
Income Tax Paid	114.86	38.50	67.72
Net cashflow from Operating Activities	328.75	202.23	271.08
Net cashflow from Investing Activities	(39.10)	1.65	(78.88)
Net cashflow from Financing Activities	(104.59)	(306.80)	(90.27)

Cash Flows from Operating Activities

For the financial year ended March 31, 2025

Our net cash inflow from operating activities for the year ended March 31, 2025, was Rs328.75 lakhs as compared to the profit before tax at Rs506.03 lakhs. Our operating profit before working capital changes was Rs573.08 lakhs which was primarily adjusted against increase in increase in inventory by Rs42.72 lakhs, trade receivables by Rs13.18 lakhs, increase in short term loans and advances by Rs17.74 lakhs, decrease in trade payables by Rs9.91 lakhs, decrease in other current liabilities by Rs45.93 lakhs and income taxes paid of ^114.86 lakhs.

For the financial year ended March 31, 2024

Our net cash inflow from operating activities for the year ended March 31, 2024, was Rs202.23 lakhs as compared to the profit before tax at Rs405.52 lakhs. Our operating profit before working capital changes was Rs489.77 lakhs, which was primarily adjusted against decrease in trade receivables by Rs185.31 lakhs, decrease in inventory by Rs2.57 lakhs, increase in short term loans and advances by Rs265.89 lakhs, decrease in trade payables by Rs160.29 lakhs, decrease in other current liabilities by Rs10.75 lakhs and income taxes paid of Rs38.50 lakhs.

For the _ financial year ended March 31, 2023

Our net cash inflow from operating activities for the year ended March 31, 2023, was at Rs271.08 lakhs as compared to the profit before tax at Rs79.67 lakhs. Our operating profit before working capital changes was Rs254.40 lakhs, which was

primarily adjusted against increase in trade receivables by Rs270.76 lakhs, increase in inventory by Rs20.60 lakhs, decrease in short term loans and advances by Rs420.65 lakhs, increase in trade payables by Rs112.06 lakhs and decrease in other current liabilities by Rs156.95 lakhs and income taxes paid of Rs67.72 akhs.

Cash Flows from Investment Activities

For the financial year ended March 31, 2025

The net cash outflow from investing activities was Rs39.10 lakhs. This was mainly on account of Purchase of Property, Plant and Equipment of Rs39.22 lakhs and interest income of Rs0.12 lakhs.

For the financial year ended March 31, 2024

The net cash inflow from investing activities was Rs1.65 lakhs. This was mainly on account of Purchase of Property, Plant and Equipment of Rs6.50 lakhs and sale of long-term investment of Rs8.00 lakhs and interest received of Rs0.15 lakhs.

For the financial year ended March 31, 2023

The net cash outflow from the investing activities was Rs78.88 Lakhs. This was mainly on account of the Purchase of Property, Plant and Equipment of Rs74.71 lakhs, decrease in Non-Current Assets by Rs4.50 lakhs and interest received of Rs0.33 lakhs.

Cash Flows from Financing Activities

For the financial year ended March 31, 2025

The net cash outflow from financing activities was Rs104.59 lakhs. This was mainly on account of repayment of short - term borrowings of Rs81.90 lakhs, and finance cost of Rs22.69 lakhs.

For the financial year ended March 31, 2024

The net cash outflow from financing activities was Rs306.80 lakhs. This was mainly on account of repayment of short - term borrowings of Rs271.05 lakhs, and finance cost of Rs35.75 lakhs.

For the financial year ended March 31, 2023

The net cash outflow from financing activities was Rs90.27 lakhs. This was mainly on account of repayment of short-term borrowings of Rs55.25 lakhs, and finance cost of Rs35.02 lakhs.

Related Party Transactions

Related party transactions with certain of our promoters, Directorand their entities and relatives primarily relate to remuneration, salary, loans & advances, sales and the issue of Equity Shares. For further details of related parties kindly refer chapter titled "RestatedFinancial Statements" beginning on page 186 of this Draft 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 purpose of facilitating off-balance sheet arrangements.

Qualifications of the Statutory Audito Rs 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 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 in future and our access to funds.

Effect of Inflation

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

Credit Risk

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

Other Matters

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

Except as disclosed in chapter titled "Restated Financial Statements" beginning on page 186 of this Draft Red Herring Prospectus, there have been no defaults in payment of statutory dues or repayment of debentures 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.

Material Frauds

There has been no material fraud, as reported by our statutory auditor, committed against our Company, in the last three Fiscals.

Unusual or infrequent events or transactions

Except as described in this Draft Red Herring Prospectus, during the yea Rs under review there have been no transactions or events, which in our best judgment, would be considered "unusual" or "infrequent".

Significant Economic Changes that Materially Affected or are Likely to Affect Income from Continuing Operations

Indian rules and regulations as well as the overall growth of the Indian economy have a significant bearing on our operations. Major changes in these facto Rs can significantly impact income from continuing operations. There are no significant economic changes that materially affected our Companys operations or are likely to affect income from continuing operations except as described in chapter titled "Risk Facto Rs " beginning on page 31 of this Draft Red Herring Prospectus.

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

Other than as described in the section titled "Risk Facto Rs " and chapter titled "Managements Discussion and Analysis ofFinancial Conditions and Results of Operations ", beginning on page 31 and 236 of this Draft Red Herring Prospectus respectively 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 relationship between Costs and Income

Other than as described in the section titled "Risk Factors" beginning on page 31 of this Draft Red Herring Prospectus, to our knowledge there are no factors, which will affect the future relationship between costs and income, or which are expected to have a material adverse impact on our operations and finances.

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

Changes in revenue in the last three financial yea Rs are as explained in the part "Financial Year 2024-25 compared with Financial Year 2023-24 and Financial Year 2023-24 Compared with Financial Year 2022-23" above.

Significant dependence on a single or few Supplie Rs or Customers

Our revenue is not dependent on a single or a few custome Rs /suppliers.

Status of any publicly announced new products or business segments

Please refer to the chapter titled "Our Business" beginning on page 127 of this Draft Red Herring Prospectus for new products or business segments.

The extent to which the business is seasonal

Our business is seasonal in nature.

Competitive Conditions

Competitive conditions are as described in the Chapter "Our Business " beginning on page 127 of this Draft Red Herring Prospectus.