You should read the following discussion of our financial condition and results of operations together with our Restated Financial Information which have been included in this Draft Red Herring Prospectus. The following discussion and analysis of our financial condition and results of operations is based on our Restated Financial Information for the Fiscals 2025, 2024 and 2023 including the related notes and reports, included in this Draft Red Herring Prospectus prepared in accordance with requirements of the Companies Act 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 Restated Financial Information have been derived from our audited financial statements for the respective period and years. Accordingly, the degree to which our Restated Financial Information will provide meaningful information to a prospective investor in countries other than India is entirely dependent on the readers level offamiliarity with Ind AS, Companies Act, SEBI Regulations and other relevant accounting practices in India. Please see, "Risk Factors -66 Significant differences exist between Ind AS and other accounting principles, such as US GAAP and International Financial Reporting Standards ("IFRS"), which investors may be more familiar with and consider material to their assessment of our financial condition " on page 269.
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 "Risk Factors" and "Forward Looking Statements" beginning on pages 33 and 22 respectively, and elsewhere in this Draft Red Herring Prospectus.
Unless the context otherwise requires, references in this section to "our Company", "the Company" "we", "us", or "our" refers to Om Power Transmission Limited.
Further, names of certain customers and suppliers have not been included in this Draft Red Herring Prospectus either because relevant consents for disclosure of their names were not available or in order to preserve confidentiality.
Unless stated otherwise, industry and market data used in this Draft Red Herring Prospectus is derived from the report titled, "Report on EPC in Power Transmission Infrastructure " dated September 29, 2025, prepared by Dun & Bradstreet (the "D&B Report") pursuant to a contract agreement dated July 14, 2025. The D&B Report is commissioned and paid for by our Company in connection with the Offer. The data included herein includes excerpts from the D&B Report and may have been re-ordered by us for the purposes ofpresentation. A copy of the D&B Report is available on the website of our Company at www.ompowertransmission.com. Unless otherwise indicated, financial, operational, industry and other related information derived from the D&B Report and included herein with respect to any particular Fiscal/ calendar year refers to such information for the relevant Fiscal/ calendar year.
Our Fiscal Year ends on March 31 of each year. Accordingly, all references to a particular Fiscal year are to the 12 months ended March 31 of that year.
Overview
For details in relation to our business overview, see "Our Business-Overview" on page 225.
PRINCIPAL FACTORS AFFECTING OUR FINANCIAL CONDITION AND RESULTS OF OPERATIONS Our results of operations and financial condition are affected by a number of important factors, including:
Relationship with key customers
We are dependent on certain key customers for our business. The tables below provide details of our revenue from our largest customer, top 3 customers, top 5 customers and top 10 customers (the identities of which varied between fiscal years) compared to our revenue from operations for Fiscals 2025, 2024 and 2023:
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Revenue from operation generated | Percentage of revenue from operations | Revenue from operation generated | Percentage of revenue from operations | Revenue from operation generated | Percentage of revenue from operations | |
| ( Rs in Lakhs) | (%) | ( Rs in Lakhs) | (%) | ( Rs in Lakhs) | (%) | |
| Largest customer | 14,085.06 | 50.41% | 7,676.24 | 42.00% | 5,131.58 | 42.68% |
| Top 3 Customers | 21,600.15 | 77.30% | 13,422.48 | 73.44% | 8326.56 | 69.25% |
| Top 5 Customers | 24,045.36 | 86.05% | 15,689.22 | 85.85% | 10,168.77 | 84.58% |
| Top 10 Customers | 26,736.74 | 95.68% | 17,845.91 | 97.66% | 11,634.05 | 96.76% |
Our ability to retain existing customers and attract prospective customers depends, among other factors, on the competitiveness and flexibility of our pricing model. The loss of any one or more of such key customers for any reason (including due to loss of contracts or failure to negotiate acceptable terms in contract renewal negotiations, disputes with customers, adverse change in the financial condition of such customers, including due to possible bankruptcy or liquidation or other financial hardship, merger or decline in their sales, reduced or delayed customer requirements, plant shutdowns, labour strikes or other work stoppages) could have an adverse effect on our business, results of operations and financial condition. Customers in our markets may consolidate and grow in a manner that could affect their relationship with us. For instance, if one of our customers is acquired by any other company, its management may get reshuffled which may affect our relationship with such customer, and we may not be able to retain any favourable terms that we agreed to in the past and may even lose that acquired customers business.
For details on our contracts with customers, see "Risk Factor-5 We are dependent on our top ten customers who contribute to more than 95.68%, 97.66% and 96.76% of our revenue from operations in Fiscals 2025, 2024 and 2023, respectively and the loss of any of these customers or a significant reduction in purchases by any of them could adversely affect our business, results of operations and financial condition. " on page 38.
We typically enter into short to medium-term arrangements ranging from 12 months to 36 months, as well as long-term agreements for supply of our services. While none of our customers have terminated their arrangements with us during the last three fiscals, there can be no assurance that such customers will continue to place similar orders in the future, or that we will be able to maintain our existing volume of business with them. Further, we may not be able to fully mitigate the impact of any reduction in prices or orders by these customers through cost reductions or by acquiring new customers. Any inability to retain one or more of our key customers, or to offset such reduction in business, may adversely affect our financial performance and results of operations.
Our Diversified order book
In the Industry which we operate, order book is the considered an indicator of future performance since it represents a committed portion of anticipated future revenue. Our Order Book represents the estimated contract value of the unexecuted portion of our existing assigned EPC contracts. We have a diverse order book in all of our business verticals including transmission line EPC, underground Cabling, substation EPC, operational and maintenance of substations. Despite making up the majority of our order book, our power sector business vertical comprises several components that guarantee our order book stays diverse. For further details, see "-Industry Overview" on page 145.
The tables below set out details of our Order Book by business verticals, as of the dates mentioned:
| Business Vertical | As at period ended August 31, 2025 | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | ||||
| Amount of order book ( Rs in lakhs) | % of total order book | Amount of order book ( Rs in lakhs) | % of total order book | Amount of order book ( Rs in lakhs) | % of total order book | Amount of order book ( Rs in lakhs) | % of total order book | |
| Transmission Line Project | 46,710.99 | 60.18% | 21,076.10 | 47.72% | 27,059.13 | 52.48% | 9,729.64 | 46.36% |
| Business Vertical | As at period ended August 31, 2025 | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | ||||
| Amount of order book ( Rs in lakhs) | % of total order book | Amount of order book ( Rs in lakhs) | % of total order book | Amount of order book ( Rs in lakhs) | % of total order book | Amount of order book ( Rs in lakhs) | % of total order book | |
| Substation EPC Project | 20,043.16 | 25.82% | 14,022.44 | 31.75% | 5,045.21 | 9.78% | 890.05 | 4.24% |
| Operation and Maintenance | 3,533.26 | 4.55% | 4,865.01 | 11.01% | 7,994.63 | 15.51% | 8,294.30 | 39.52% |
| Under Ground Cabling | 7,331.94 | 9.45% | 4,205.30 | 9.52% | 11,461.98 | 22.23% | 2,075.10 | 9.89% |
| Total | 77,619.35 | 100.00% | 44,168.85 | 100.00% | 51,560.95 | 100.00% | 20,989.09 | 100.00% |
The significant growth of our business for the Fiscal 2023, 2024 and 2025 has contributed significantly to our financial strength. Our total revenue increased at a CAGR of 52.12 % while our profit for the year increased at a CAGR of 88.17% between the Fiscal 2023 to the Fiscal 2025.
Proven Track Record in Winning Projects
Our Company has established a strong track record in successfully securing projects through competitive bidding in the power transmission sector. The majority of projects in our industry are awarded through a competitive bidding process. As such, we are required to meet prescribed qualification criteria and submit commercially competitive bids to secure contracts. We participate in tenders floated by government utilities, public sector undertakings, and private parties, leveraging our technical expertise, financial track record, proven execution capabilities, and compliance with prequalification criteria. Over the years, our efficient bidding strategies, cost optimization, and ability to meet stringent eligibility norms have enabled us to achieve a healthy project win rate. This has resulted in the consistent award of projects across transmission lines, substations, operation & maintenance and underground cabling, strengthening our presence in both government and private sectors. Our demonstrated execution track record further enhances our credibility, allowing us to remain a preferred partner for future opportunities in the sector.
Our Company has made the following number of bids during Fiscals 2025, 2024, and 2023. The value of the projects awarded against these bids are also as provided below:
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| No of bids made | 69.00 | 64.00 | 76.00 |
| No. of bids awarded | 28.00 | 28.00 | 35.00 |
| Value of project awarded ( Rs in lakhs)* | 21,452.77 | 49,446.74 | 10,468.65 |
| Project win rate | 40.58% | 43.75% | 46.05% |
*Excluding GST
Regulatory framework, economic environment, and sectoral performance:
Our business is closely linked to the growth and development of the power transmission and distribution sector in India, which is predominantly driven by projects awarded by governmental authorities, state and central government undertakings, as well as entities funded through public and multilateral agencies. These projects are typically awarded through tariff-based competitive bidding processes. A substantial portion of our revenue is currently derived, and is expected to continue to be derived, from such projects in India, which in turn depend on budgetary allocations by central and state governments, funding support from public bodies and multilateral institutions, and private sector participation. We believe that sustained government focus on infrastructure development, enhanced budgetary allocations, continued engagement of multilateral agencies, and policies that promote greater private sector involvement and financing will create further opportunities for power transmission, distribution, and related infrastructure projects in India.
The prospects of our business are also influenced by macroeconomic factors, including the growing demand for electricity across residential, industrial, and commercial segments, increased electrification in rural areas, creation of green energy corridors, and the Government of Indias emphasis on renewable energy integration and transmission sector development. In addition, factors such as global GDP growth, trends in foreign investment in India, fluctuations in oil prices, and
overall financial stability may affect the broader economic environment, and consequently, infrastructure policies in India. Changes in government at the central or state level, or alterations in their policy priorities, may also impact the implementation and progress of our ongoing and future projects.
Indias electricity industry is separated in two different segments: (i) Electricity Generation; (ii) transmission; and distribution. Indias transmission segment operates at various levels ranging from (1.1 kV and below) to Extra High Voltage (220 kV and above). Indias total domestic transmission line network for High Voltage segment and Extra-High Voltage segment has witnessed CAGR of approximately 3.1% and 2.7%, respectively, between FY 2020 and FY 2025. Such voltage classes have applications in Inter State Bulk Power Transfer, Large Thermal and Hydro Power Stations, Ultra-Mega Industrial Projects and Grid-Connected Renewable Energy Evacuation. Over the past five years, India maintained an average annual addition of 13,860.6 CKM of transmission lines and 73,924 MVA of transformation capacity. The government plans to add approximately 17,500 CKM of transmission lines and 80,000 MVA of transformation capacity annually over the next three years. The power transmission sector is also expected to grow, with the bid pipeline increasing from less than INR 150 billion in February 2021 to INR 1 trillion in projects currently up for bidding. (Source: Dun & Bradstreet Report)
Competition:
The power EPC segment faces stiff competition, especially in the 132kV to 400kV range, where both national players and regional contractors aggressively participate in state and central bidding processes. Tendering norms often include stringent net worth, solvency, and past experience thresholds, which limit first-time entrants and encourage consortium or JV-based bidding strategies. LI pricing pressures persist, but players differentiate themselves through safety compliance, manpower readiness, and ability to mobilize equipment quickly for geographically diverse projects. Our competitors are Rajesh Power Services Limited, Advait Energy Transitions Limited and Viviana Power Tech Limited (Source: D&B Report.). For details, see "Risk Factor- 18. We face certain competitive pressures from the existing competitors and new entrants in both public and private sector. Increased competition and aggressive bidding by such competitors are expected to make our ability to procure business in future more uncertain which may adversely affect our business, financial condition and results of operations" on page 47.
Several of our competitors are larger in scale and may benefit from greater financial resources, economies of scale, and operational experience, enabling them to bid more competitively or execute projects more efficiently. There can be no assurance that we will be able to compete effectively against such entities in the future. Furthermore, the competitive nature of the EPC industry, particularly in competitive bidding, may exert downward pressure on project margins, which could materially and adversely impact our revenues, profitability, financial condition, and results of operations.
Non-Generally Accepted Accounting Principles Financial Measures ("Non-GAAP Measures") and Operational Measures
Certain measures included in this Draft Red Herring Prospectus, for instance PAT Margin, EBITDA, EBITDA Margin, Return on Equity (RoE), Return on Capital Employed (RoCE), EBITDA, and Debt to Equity Ratio,(the "Non-GAAP Measures and Operational Measures), presented in this Draft Red Herring Prospectus are supplemental measures of our performance and liquidity that are not required by, or presented in accordance with Ind AS, IFRS or US GAAP. Furthermore, these Non-GAAP Measures, are not a measurement of our financial performance or liquidity under Indian GAAP, IFRS or US GAAP and should not be considered as an alternative to net profit revenue from operations or any other performance measures derived in accordance with Ind AS, IFRS or US GAAP or as an alternative to cash flow from operations or as a measure of our liquidity. Further, these Non- GAAP Measures and other statistical and other information relating to operations and financial performance should not be considered in isolation or construed as an alternative to cash flows, profit for the years or any other measure of financial performance or as an indicator of our operating performance, liquidity, profitability or cash flows generated by operating, investing or financing activities derived in accordance with Ind AS, Indian GAAP, IFRS or US GAAP. In addition, these Non-GAAP Measures and other statistical and other information relating to operations and financial performance, are not standardised terms and may not be computed on the basis of any standard methodology that is applicable across the industry and therefore, may not be comparable to financial measures of similar nomenclature that may be computed and presented by other companies and are not measures of operating performance or liquidity defined by Ind AS and may not be comparable to similarly titled measures presented by other companies. Further, they may have limited utility as a comparative measure. Although such Non-GAAP financial measures are not a measure of performance calculated in accordance with applicable accounting standards, our Companys management believes that they are useful to an investor in evaluating us as they are widely used measures to evaluate a companys operating performance. For further information, see "Managements Discussion and Analysis of Financial Position and Results of Operations - Non-GAAP Financial Measures" on page 347.
Details of our KPIs as of and for the Fiscals 2025, 2024 and 2023, are set out below: Our Operating and Financial Metrics Key Performance Indicators:
Details of KPIs for the Fiscal 2025, 2024 and 2023:
| Particulars | Unit | Om Power Transmission Limited | ||
| For the year and as at | ||||
| Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | ||
| GAAP Measures | ||||
| 1. Total Income | ( Rs in Lakhs) | 28,164.77 | 18,439.45 | 12,170.73 |
| 2. Revenue from Operations | ( Rs in Lakhs) | 27,943.51 | 18,276.16 | 12,023.63 |
| 3. Profit After Tax | ( Rs in Lakhs) | 2,208.48 | 741.24 | 622.87 |
| 4. Operating Cash Flows | ( Rs in Lakhs) | 1,244.61 | 353.08 | 1,005.40 |
| Non - GAAP Measures | ||||
| 5. Gross Profit | ( Rs in Lakhs) | 7,020.00 | 4,526.34 | 3,390.55 |
| 6. Gross Profit Margin | (In %) | 24.92% | 24.55% | 27.86% |
| 7. PAT Margin | (In %) | 7.84% | 4.02% | 5.12% |
| 8. CFO/EBITDA | (In Times) | 0.35 | 0.24 | 0.84 |
| 9. Debt to Equity Ratio | (In Times) | 0.26 | 0.52 | 0.59 |
| 10. Current Ratio | (In Times) | 1.81 | 1.34 | 1.26 |
| 11. EBITDA | ( Rs in Lakhs) | 3,565.60 | 1,446.63 | 1,192.94 |
| 12. EBITDA Margin | (In %) | 12.66% | 7.85% | 9.80% |
| 13. Return on Equity (RoE) | (In %) | 35.83% | 15.77% | 15.18% |
| 14. Return on Capital Employed (RoCE) | (In %) | 41.76% | 18.41% | 15.45% |
| 15. Net Capital Turnover Ratio | (In Times) | 4.57 | 4.29 | 3.11 |
| Operational Metrics | ||||
| 16. Order Book | ( Rs in Lakhs) | 44,168.85 | 51,560.95 | 20,989.09 |
| 17. Order Inflow | ( Rs in Lakhs) | 21,452.77 | 49,446.74 | 10,468.65 |
| 18. Number of Projects Completed | (In Numbers) | 26 | 11 | 25 |
| 19. Number projects ongoing | (In Numbers) | 42 | 48 | 36 |
| 20. Number of Customers | (In Numbers) | 24 | 18 | 17 |
| 21. Book to Bill Ratio | (In Times) | 1.58 | 2.82 | 1.75 |
| 22. Project Win Rate | (In %) | 40.58% | 43.75% | 46.05% |
The Figure has been certified by Peer Review Auditors, O.M.M.S & Associates, Chartered Accountants vide their certificate dated September 30, 2025
| Metric | Unit | Formula |
| 1. Total Income | ( Rs in Lakhs) | Sum of revenue from operations and other income. |
| 2. Revenue from Operations | ( Rs in Lakhs) | Sum of revenue from customers and other operating income. |
| 3. Profit After Tax | ( Rs in Lakhs) | Restated profit for the year as per Restated Financial Statements. |
| 4. Operating Cash Flows | ( Rs in Lakhs) | Operating Cash flows is Cash flow from operations from cash flow statements. |
| 5. Gross Profit | ( Rs in Lakhs) | Gross profit is calculated by deducting the cost of material consumed & project related expenses from the restated revenue from operations. |
| 6. Gross Profit Margin | (In %) | Gross Profit Margin is calculated by dividing gross profit by total income and multiplying by 100 |
| 7. PAT Margin | (In %) | PAT Margin (%) is determined by dividing the restated profit for the year by total income and multiplying by 100. |
| 8. CFO/EBITDA | (In Times) | Cash flow from operation divided by EBITDA |
| 9. Debt to Equity Ratio | (In Times) | This is defined as total debt divided by total equity. Total debt is the sum of total current & non-current borrowings; total equity means sum of equity share capital and other equity |
| 10. Current Ratio | (In Times) | Current Ratio is calculated by total current assets divided by total current liabilities. |
| 11. EBITDA | ( Rs in Lakhs) | EBITDA is calculated as Restated profit before share of profit/(loss) tax plus Finance Costs, Depreciation and amortization expense less other income. |
| 12. EBITDA Margin | (In %) | EBITDA Margin (%) is computed by dividing EBITDA by total income and multiplying by 100 |
| 13. Return on Equity (RoE) | (In %) | Return on Equity (%) is calculated by dividing profit after tax (PAT) by total equity and multiplying by 100. |
| 14. Return on Capital Employed (RoCE) | (In %) | ROCE is calculated as operating EBIT as a percentage of capital employed. EBIT is calculated as Restated profit before share of profit/(loss) tax plus Finance Costs. Capital employed is the sum of tangible net worth plus net debt, where tangible net worth is calculated as total equity minus goodwill, intangible assets, and deferred tax assets, plus deferred tax liabilities. |
| 15. Net Capital Turnover Ratio | (In Times) | Net capital turnover ratio is calculated by dividing net sales by average working capital. Net sales are total sales minus sales returns, and working capital is calculated as current assets minus current liabilities (excluding short-term borrowings). |
| 16. Order Book | ( Rs in Lakhs) | The order book indicates the estimated billing from the unexecuted portions of all existing contracts of the company as of a specific date. |
| 17. Order Inflow | ( Rs in Lakhs) | Order inflow represents the total value of new customer orders received by the company within a specific period. |
| 18. Number of Projects Completed | (In Numbers) | This metric refers to the total count of projects that have been fully completed and delivered within a specified time frame |
| 19. Number of Projects ongoing | (In Numbers) | Number of Ongoing Projects represents the total projects that are active and not yet completed during a specific period. It is calculated by counting all projects in execution, excluding those closed or fully delivered. |
| 20. Number of Customers | (In Numbers) | Number of Customers represents total number of unique customers served in respective period. |
| 21. Book to Bill Ratio | (In Times) | The book-to-bill ratio is the ratio of the total value of new orders received (bookings) to the total value of orders shipped and billed in the same period. |
| 22. Project Win Rate | (In %) | The project win rate (%) is the percentage of projects successfully secured out of the total number of project opportunities pursued. |
MATERIAL ACCOUNTING POLICIES
a) Revenue Recognition
Revenue is measured based on the transaction price, which is the consideration, adjusted for variable considerations, if any, as specified in the contracts with the customers. Revenue excludes taxes collected from customers on behalf of the government. Accruals for variable considerations are estimated based on accumulated experience and underlying agreements with customers.
Sale of Goods:
Revenue from sale of products is recognized when the control of the goods have been transferred to the customer. The performance obligation in case of sale of products is satisfied at a point in time, i.e. when the material is dispatched to the customer or on delivery to the customer, as may be specified in the contract.
Rendering of services:
Revenue from services is recognized over time by measuring progress towards satisfaction of performance obligation for the services rendered. The Company uses Input/ Output method for measurement of revenue from rendering of services based on work executed.
The Company satisfies a performance obligation and recognises revenue over time, if one of the following criteria is met:
- As the entity performs, the customer simultaneously receives and consumes the benefits provided by the entitys performance.
- The entitys performance creates or enhances an asset (e.g., work in progress) that the customer controls as the asset is created or enhanced.
- The entitys performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date.
Performance obligations with reference to EPC contracts are satisfied over the period of time, and accordingly, revenue from such contracts is recognised based on progress of performance determined using input method with reference to the cost incurred on contract and their estimated total costs. Margin is not recognised until the outcome of the contract is certain. Transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer excluding amounts collected on behalf of a third party. Revenue, measured at transaction price, is adjusted towards liquidated damages, time value of money and price variations, escalation, change in scope etc. wherever, applicable. Variation in contract work and other claims are included to the extent that the amount can be measured reliably, and it is agreed with customer.
The Company evaluates whether each contract consists of a single performance obligation or multiple performance obligations. Due to the nature of the work required to be performed on many of the performance obligations, the estimation of total revenue and cost at completion is subject to many variables and requires significant judgement. The Company considers its experience with similar transactions and expectations regarding the contract in estimating the amount of variable consideration to which it will be entitled and determining whether the estimated variable consideration should be constrained. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is resolved.
Revenue is recognised when the Company satisfies performance obligations by transferring the promised services or goods to its customers. When there is uncertainty as to measurement or ultimate collectability, revenue recognition is postponed until such uncertainty is resolved.
Contract modifications are accounted for when additions, deletions or changes are approved either to the contract scope or contract price.
Progress billings are generally issued upon completion of certain phases of the work as stipulated in the contract. Billing terms of the overtime contracts vary but are generally based on achieving specified milestones. The difference between the timing of revenue recognised and customer billings result in changes to contract assets and contract liabilities. Contractual retention amounts billed to customers are generally due upon expiration of the contract period.
The contracts generally result in revenue recognised in excess of billings which are presented as contract assets in the Balance Sheet. Amounts billed and due from customers are classified as receivables in the Balance Sheet. The portion of the payments retained by the customer until final contract settlement is not considered a significant financing component since it is usually intended to provide customer with a form of security for Company s remaining performance as specified under the contract, which is consistent with the industry practice. Contract liabilities represent amounts billed to customers in excess of revenue recognised till date. Liability is recognised for advance payments, and it is not considered as a significant financing component since it is used to meet working capital requirements at the time of project mobilization stage. The same is presented as contract liability in the Balance Sheet.
Estimates of revenue and costs are reviewed periodically and revised, wherever circumstances change, resulting in increases or decreases in revenue determination, is recognised in the statement of profit and loss in the period in which estimates are revised.
Costs to obtain a contract which are incurred regardless of whether the contract was obtained are charged off in statement of profit and loss immediately in the period in which such costs are incurred.
i. Contract assets (Unbilled Revenue):
A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional.
ii. Trade receivables:
A receivable represents the Companys right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due).
iii. Contract liabilities (Unearned Revenue):
A contract liability is the obligation to transfer goods or services to a customer for which the company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the company transfers goods or services to the customer, a contract liability is recognised when the payment is made, or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.
Other Income
Interest income from financial assets is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the Company estimates the expected cash flow by considering all the contractual terms of the financial instrument but does not consider the expected credit losses.
Dividends are recognised in the Statement of Profit and Loss only when the right to receive payment is established; it is probable that the economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.
Insurance claims are accounted for on the basis of claims admitted and to the extent that there is no uncertainty in receiving the claims.
Rental income is recognised on accrual basis.
b) Taxes
Income tax expense comprises of current tax expense and deferred tax expenses. Current tax and deferred tax are recognised in statement of profit and loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity, respectively.
(i) Current income tax:
Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act of the respective jurisdiction. The current tax is calculated using tax rates that have been enacted or substantively enacted, at the reporting date.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
(ii) Deferred tax:
Deferred tax is recognised using the Balance Sheet approach on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts.
Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except when the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax assets to be recovered.
Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities.
The Company recognises deferred tax liability for all taxable temporary differences, except to the extent that both of the following conditions are satisfied:
• When the Company can control the timing of the reversal of the temporary difference; and
• It is probable that the temporary difference will not reverse in the foreseeable future.
c) Property, Plant and Equipment
All items of property, plant and equipment are initially recorded at cost. Cost of property, plant and equipment comprises purchase price, non-refundable taxes, levies and any directly attributable cost of bringing the asset to its working condition for the intended use. Subsequent to initial recognition, property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.
The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The cost includes the cost of replacing part of the property, plant and equipment and borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying property, plant and equipment.
Items such as spare parts, stand-by equipment and servicing equipment that meet the definition of property, plant and equipment are capitalized at cost and depreciated over their useful life. Costs in nature of repairs and maintenance are recognised in the statement of profit and loss as and when incurred.
Depreciation on property, plant and equipment is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 as per Written down value method.
Gains or losses arising from derecognition of property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset at the time of disposal and are recognised in the statement of profit and loss when the asset is derecognised.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.
On transition to Ind AS, the Company has elected to continue with the carrying value of all its property, plant and equipment recognised as of transition date, measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.
d) Investment properties
Investment properties are held to earn rentals or for capital appreciation, or both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Investment properties are measured initially at the cost of acquisition. The cost comprises purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company. All other repair and maintenance costs are recognised in statement of profit and loss as incurred.
On transition to Ind AS, the Company has elected to continue with the carrying value of all its investment properties recognised as of transition date, measured as per the previous GAAP and use that carrying value as the deemed cost of the Investment Property.
e) Intangible assets
An intangible asset is recognised, only where it is probable that future economic benefits attributable to the asset will accrue to the enterprise and the cost can be measured reliably.
Intangible assets acquired separately are measured on initial recognition at cost. Intangible assets arising on acquisition of business are measured at fair value as at date of acquisition. Internally generated intangibles including research costs are not capitalized and the related expenditure is recognised in the Statement of Profit and Loss in the period in which the expenditure is incurred. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment loss, if any.
Intangible assets are amortized on Written down value over the economic useful life estimated by the management and is recognised in the statement of profit and loss under the head "Depreciation and Amortization expense". The estimated useful life of the intangible assets and the amortization period are reviewed at the end of each financial year, and the amortization period is revised to reflect the changed pattern, if any.
On transition to Ind AS, the Company has elected to continue with the carrying value of all its intangible assets recognised as of transition date, measured as per the previous GAAP and use that carrying value as the deemed cost of Intangible Asset.
f) Inventories
The stock of construction materials, stores, and spares is valued at cost or net realisable value, whichever is lower. Cost is determined on First in First out basis and includes all applicable cost of bringing the goods to their present location and condition.
Inventories are valued as per following method:
| Items | Method of Valuation |
| Raw Materials and Components | At Cost or NRV, whichever is lower |
| Work-in-progress | At Cost or NRV, whichever is lower |
g) Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and demand deposits with banks, short-term balances (with an original maturity of three months or less), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. Margin money deposits, earmarked balances with banks and other bank balances which have restrictions are presented as other bank balances.
For the purpose of statement of cash flows, cash and cash equivalents consist of cash.
h) Borrowing costs
Borrowing costs consist of interest, ancillary costs, and other costs in connection with the borrowing of funds.
Borrowing costs attributable to acquisition and/or construction of qualifying assets are capitalised as a part of the cost of such assets, up to date such assets are ready for their intended use. All other borrowing costs are charged to the statement of profit and loss.
i) Impairment of non-financial assets
The Company assesses at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the assets recoverable amount. An asset recoverable amount is the higher of an asset or cash-generating units (CGU) fair value, less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or Groups of assets.
When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. Impairment losses of continuing operations are recognised in the statement of profit and loss.
j) Leases Company as a lessee
At the commencement date of a lease, the Company recognises a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Right- of- use assets are measured at cost, less any accumulated depreciation, impairment losses and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised and lease payments made at or before the commencement date. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.
The Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company. In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification or a change in the lease term. The Company separately recognises the interest expense on the lease liability as finance cost and the depreciation expense on the right-of-use asset.
The Company accounts for a lease modification as a separate lease when both of the following conditions are met:
• The modification increases the scope of the lease by adding the right to use one or more underlying assets.
• The consideration for the lease increases commensurate with the price for the increase in scope and any adjustments to that stand-alone price reflect the circumstances of the particular contract.
For a lease modification that fully or partially decreases the scope of the lease the Company decreases the carrying amount of the right-of-use asset to reflect partial or full termination of the lease. Any difference between those adjustments is recognised in profit or loss at the effective date of the modification.
The Company has elected to use the exemptions proposed by the standard lease contracts for which the lease terms end within 12 months of the date of initial application, and lease contracts for which the underlying asset is of low value. The Company recognises the lease payments associated with such leases as an expense in the statement of profit and loss.
k) Financial Instruments
Initial recognition and measurement
Financial instruments (assets and liabilities) are recognised when the Company becomes a party to a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial assets (unless it is a trade receivable without a significant financing component) and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, other than those designated as fair value through profit or loss (FVTPL), are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognised immediately in statement of profit and loss. A trade receivable without a significant financing component is initially measured at the transaction price. The amount of retention money held by the customers is disclosed as part of trade receivables.
i. Financial assets
All regular purchases or sale of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.
Subsequent measurement
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets:
a) Financial assets measured at amortised cost
b) Financial assets measured at fair value through profit or loss (FVTPL)
c) Financial assets measured at fair value through other comprehensive income (FVTOCI)
Financial assets measured at amortised cost
A financial asset is measured at amortised cost if both the following conditions are met:
• The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
• Contractual terms of the instruments give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding. This category applies to cash and bank balances, trade receivables, and loans. Such financial assets are subsequently measured at amortised cost using the effective interest method. The effect of the amortisation under effective interest method is recognised as interest income over the relevant period of the financial asset under other income in the Statement of Profit and Loss. The amortised cost of a financial asset is also adjusted for loss allowance, if any.
After initial measurement, such financial assets are subsequently measured at amortised cost using the Effective Interest Rate (EIR) method. EIR is the rate that exactly discounts estimated future cash receipts (including all fees, transaction costs and other premiums or discounts) through the expected life of the debt instrument or where appropriate, a shorter period, to the net carrying amount on initial recognition.
The EIR amortisation is included in other income in the statement of profit and loss. The losses arising from impairment are recognised in the statement of profit and loss. This category generally applies to trade and other receivables, loans, etc.
Financial assets measured at FVTPL Debt instrument
FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at amortised cost or as FVTOCI, is classified as at FVTPL. Financial assets included within the FVTPL category are measured at fair value with all changes recognised in the statement of profit and loss.
Equity investments (Equity investments other than investments in subsidiaries, joint ventures and associates)
The Company subsequently measures all equity investments other than investments in subsidiaries, joint ventures and associates at fair value. Where the Companys management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to the statement of profit and loss in the event of de-recognition. Dividends from such investments are recognised in the statement of profit and loss as other income when the Companys right to receive payments is established. Changes in the fair value of financial assets at FVTPL are recognised in the statement of profit and loss.
Financial assets measured at fair value through other comprehensive income (FVTOCI)
A financial asset is measured at FVTOCI if both of the following conditions are met:
a. The Companys business model objective for managing the financial asset is achieved both by collecting contractual cash flows and selling the financial assets, and
b. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
This category applies to certain investments in debt instruments. Such financial assets are subsequently measured at fair value at each reporting date. Fair value changes are recognised in the Other Comprehensive Income (OCI). However, the Company recognises interest income and impairment losses and its reversals in the Statement of Profit and Loss.
De-recognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised when:
• The rights to receive cash flows from the asset have expired, or
• The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass through arrangement; and either.
- the Company has transferred substantially all the risks and rewards of the asset, or
- the Company has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset.
- On derecognition of a financial asset, for financial assets measured at FVTOCI), the difference between the carrying amount and the consideration received is recognised in the Statement of Profit and Loss.S
Impairment of financial assets
In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:
• Debt instruments measured at amortised cost e.g., bank deposits
• Trade receivables
• Other financial assets not designated as FVTPL
For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12- month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR. Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting date.
The Company follows ‘simplified approach for recognition of impairment loss allowance on Trade receivables (including lease receivables). The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECL at each reporting date, right from its initial recognition.
ii. Financial liabilities Subsequent measurement
All financial liabilities are subsequently measured at amortised cost using the EIR method or at FVTPL.
Financial liabilities at amortised cost
After initial recognition, interest-bearing borrowings and other payables are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in statement of profit and loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.
Financial liabilities at FVTPL
Financial liabilities are classified as FVTPL when the financial liabilities are held for trading or are designated as FVTPL on initial recognition. Financial liabilities are classified as being held for trading if they are incurred for the purpose of repurchasing in the near term. Gains or losses on liabilities held for trading are recognised in the profit or loss.
De-recognition
A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires.
iii. Trade receivables
A receivable represents the Companys right to an amount of consideration under the contract with a customer that is unconditional and realizable on the due date (i.e., only the passage of time is required before payment of the consideration is due). Trade receivable without a significant financing component is initially measured at the transaction price.
iv. Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid as per agreed terms. Trade payables are presented based on the operating cycle of the Company. They are recognised initially at their transaction price and subsequently measured at amortised cost using the effective interest method.
v. Offsetting financial instruments
Financial assets and financial liabilities are offset, and the net amount is reported in the statement of assets and liabilities if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the assets and settle the liabilities simultaneously.
vi. Modification
A modification of a financial asset or liabilities occurs when the contractual terms governing the cash flows of a financial asset or liabilities are renegotiated or otherwise modified between initial recognition and maturity of the financial instruments. Any gain/ loss on modification is charged to statement of profit and loss.
l) Fair Value Measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either:
- In the principal market for the asset or liability, or
- In the absence of a principal market, in the most advantageous market for the asset or liability
A fair value measurement of a non-financial asset takes into account a market participants ability to generate economic benefit by using the asset in its highest and best use or by selling it to another market participant that would use the asset at its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
m) Provisions (other than employee benefits)
Provisions are recognised when the Company has a present legal or constructive obligation because of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of managements best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.
n) Contingencies
Disclosure of contingent liabilities is 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.
Contingent assets are not recognised in the financial information. However, contingent assets are assessed continuously and if it is virtually certain that an inflow of economic benefits will arise, the assets and the related income are recognised in the period in which the change occurs. Contingent assets are disclosed where an inflow of economic benefits is probable.
o) Events after reporting date
Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.
p) Cash Flow Statement
Cash flows are reported using indirect method whereby profit for the period is adjusted for the effects of the transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts and payments and items of income or expenses associated with investing and financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
q) Employee Benefits
Short term employee benefits for salary and wages including accumulated leave that are expected to be settled wholly within 12 months after the end of the reporting period in which employees render the related service are recognised as an expense in the statement of profit and loss.
Defined Contribution Plan:
The Company pays contribution to the provident fund and employee state insurance corporation which is administered by respective Government authorities. The Company has no further payment obligations once the contributions have been paid. The Contributions are recognised as employee benefit expense in the statement of profit and loss to the year it pertains.
Defined benefit plan:
Gratuity: The Companys liability towards gratuity is determined using the projected unit credit method which considers each period of service as giving rise to additional unit of benefit entitlement and measures each unit separately to build up the final obligation. The cost for past services s recognised on a straight-line basis over the average period until the amended benefits become vested.
Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the statement of assets and liabilities.
Obligation is measured at the present value of estimated future cash flows using a discount rate that is determined by reference to market yields at the reporting date on Government bonds where the currency and the terms of Government bonds are consistent with the currency and estimated term of defined benefit obligation.
r) Earnings Per Share
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 equities shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit attributable to equity shareholders and the weighted average number of shares outstanding are adjusted for the effect of all dilutive potential equity shares from the exercise of options on unissued share capital. The number of equity shares is the aggregate of the weighted average number of equity shares and the weighted average number of equity shares which are to be issued in the conversion of all dilutive potential equity shares into equity shares.
s) Exceptional items
When items of income and expense within profit or loss from ordinary activities are of such size, nature or incidence that their disclosure is relevant to explain the performance of the enterprise for the period, the nature and amount of such material items are disclosed separately as exceptional items.
t) Current versus 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:
- Expected to be realized or intended to be sold or consumed in normal operating cycle;
- Held primarily for the purpose of trading.
- Expected to be realized within twelve months after the reporting period, or
- 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:
- It is expected to be settled in normal operating cycle; or
- It is held primarily for the purpose of trading; or
- It is due to be settled within twelve months after the reporting period, or
- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
All other liabilities are classified as non-current.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. The Company has identified twelve months as its operating cycle.
u) Segment reporting
An operating segment is component of the Company that engages in the business activity from which the Company earns revenues and incurs expenses, for which discrete financial information is available and whose operating results are regularly reviewed by the chief operating decision maker (CODM), in deciding about resources to be allocated to the segment and assess its performance. The Companys chief operating decision maker is the Board of Directors. Operating segments are reported in a manner consistent with the internal reporting provided to the CODM.
v) Assets held for sale
Assets are classified as Held for Sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and the sale is highly probable. A sale is considered as highly probable when such assets have been decided to be sold by the Company; are available for immediate sale in their present condition; are being actively marketed for sale at a price and the sale has been agreed or is expected to be concluded within one year of the date of classification. Such assets are measured at lower of carrying amount or fair value, less selling costs.
Assets held for sale are presented separately from other assets in the Balance Sheet and are not depreciated or amortised while they are classified as held for sale.
Key accounting estimates and judgements
The preparation of the Companys financial statements requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Examples of such estimates include estimation of useful lives of property plant and equipment, employee costs, assessments of recoverable amounts of deferred tax assets, trade receivables and cash generating units, provisions against litigations and contingencies. Estimates and underlying assumptions are reviewed by management at each reporting date. Actual results could differ from these estimates. Any revision of these estimates is recognised prospectively in the current and future periods.
(i) Deferred income taxes
The assessment of the probability of future taxable profit in which deferred tax assets can be utilized is based on the Companys latest forecast, which is adjusted for significant non-taxable profit and expenses and specific limits to the use of any unused tax loss or credit. The tax rules in the different jurisdictions in which the Company operate are also carefully taken into consideration. If a positive forecast of taxable profit indicates the probable use of a deferred tax asset, especially when it can be utilized without a time limit, that deferred tax asset is usually recognised in full.
(ii) Revenue recognition
Determination of revenue under percentage of completion method necessarily involves making estimates, some of which are of a technical nature, concerning, where relevant, the percentage of completion, costs to completion, the expected revenue from the project or activity and foreseeable losses to completion. Estimates of project income, as well as project costs, are reviewed periodically. The effect of changes, if any, to estimates is recognised in the financial statements for the year in which such changes are determined.
(iii) Current income taxes
The tax jurisdiction for the Company is India. Significant judgments are involved in determining the provision for income taxes including judgment on whether tax positions are probable of being sustained in tax assessments. A tax assessment can involve complex issues, which can only be resolved over extended time periods. The recognition of taxes that are subject to certain legal or economic limits or uncertainties is assessed individually by management based on the specific facts and circumstances.
(iv) Accounting for defined benefit plans
In accounting for post-retirement benefits, several statistical and other factors that attempt to anticipate future events are used to calculate plan expenses and liabilities. These factors include expected discount rate assumptions and rate of future compensation increases. To estimate these factors, actuarial consultants also use estimates such as withdrawal, turnover, and mortality rates which require significant judgment. The actuarial assumptions used by the Company may differ materially from actual results in future periods due to changing market and economic conditions, regulatory events, judicial rulings, higher or lower withdrawal rates, or longer or shorter participant life spans.
(v) Useful lives of property, plant and equipment and intangible assets
The Company reviews the useful life of property, plant and equipment and intangible assets at the end of each reporting period. This reassessment may result in change in depreciation and amortisation expense in future periods.
(vi) Impairment
An impairment loss is recognised for the amount by which an assets or cash-generating units carrying amount exceeds its recoverable amount to determine the recoverable amount, management estimates expected future cash flows from each asset or cash generating unit and determines a suitable interest rate in order to calculate the present value of those cash flows. In the process of measuring expected future cash flows, management makes assumptions about future operating results. These assumptions relate to future events and circumstances. The actual results may vary and may cause significant adjustments to the Companys assets.
In most cases, determining the applicable discount rate involves estimating the appropriate adjustment to market risk and the appropriate adjustment to asset-specific risk factors.
(vii) Foreseeable losses
In case of contracts, when it is probable that total contract costs will exceed total contract revenue, the expected loss (foreseeable loss) is recognised. Such loss is measured based on management experience of handling similar contract in past and estimates regarding possible future incidence during the contract period. Contract where the economic benefits in the future directly or indirectly exceed the obligation under the contract, the losses are not recognized.
(viii) Expected credit loss
Refer note for Impairment of financial assets mentioned in accounting policy on financial instruments above
(ix) Fair value of financial instruments
Management uses valuation techniques in measuring the fair value of financial instruments where active market quotes are not available. In applying the valuation techniques, management makes maximum use of market inputs and uses estimates and assumptions that are, as far as possible, consistent with observable data that market participants would use in pricing the instrument. Where applicable data is not observable, management uses its best estimate about the assumptions that market participants would make. These estimates may vary from the actual prices that would be achieved in an arms length transaction at the reporting date.
(x) Provisions and contingent liabilities
A provision is recognised when the Company has a present obligation as result of a past event and it is probable that the outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each reporting date and adjusted to reflect the current best estimates. The assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of significant judgements and the use of estimates regarding the outcome of future events.
(xi) Leases
The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease required significant judgement. The Company uses judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate. The Company revises the lease term if there is a change in non-cancellable period of a lease.
PRINCIPAL COMPONENTS OF STATEMENT OF PROFIT AND LOSS Income
Our total income comprises (i) revenue from operations, and (ii) other income.
Revenue from operations
Revenue from operations comprises (i) revenue from transmission lines EPC projects; (ii) revenue from substation EPC projects; (iii) revenue from underground cable projects; (iv) revenue from operation and maintenance; and (v) other operating revenue consisting of sale of scrap.
Other income
Other income includes (i) interest income on fixed deposits; (ii) dividend income; (iii) profit on sale of property, plant and equipment; (iv) rental income; and (v) miscellaneous income.
Expenses
Our expenses comprises of (i) cost of materials consumed, primarily relating to cost of materials, stores, spares and tools;
(ii) project related expenses; (iii) employee benefits expense; (iv) finance costs; (v) depreciation and amortization expenses; and (vi) other expense
Costs of materials consumed
Cost of materials consumed consists of materials used in EPC projects, primarily including towers, TMT bars, various steel components, conductors, optical fibre cable and stringing accessories, stores, spares and tools.
Project related expenses
Direct project expenses include expenses incurred on EPC projects, which comprises labour expense, freight and forwarding expenses, vehicle and equipment hire charges, right of way & crop compensation, site expenses, testing and supervision expenses, insurance expenses and other direct expenses.
Employee benefits expense
Employee benefits expenses primarily comprise salaries, wages, bonus & incentive, contribution to provident & other funds, director remuneration, staff welfare expenses and gratuity expense.
Finance costs
Finance cost includes (i) interest expense on borrowings from banks and NBFCs, (ii) delayed payment of statutory dues,
(iii) interest expense on delayed payment of income tax, and (iv) other borrowing costs.
Depreciation and amortization expenses
Depreciation and amortization expenses comprises (i) depreciation on property, plant and equipment, (ii) depreciation on investment property, and (iii) amortization of intangible assets.
Other expenses
Other expenses include
(i) rates, taxes and duties, (ii) stationery printing and drawing expenses, (iii) communication expenses, (iv) power and fuel, (v) travelling and conveyance, (vi) allowances for expected credit loss, (vii) corporate social responsibility expenses, (viii) donation, (ix) auditors remuneration (x) legal and professional fees (xi) loss on sale of property, plant and equipment, (xii) repairs and maintenance for building, plant and equipment and others, (xiii) sales & promotion expenses, and (xiv) miscellaneous expenses.
RESULTS OF OPERATIONS BASED ON OUR RESTATED FINANCIAL INFORMATION
The following tables set forth our selected restated financial data from our restated statement of profit and loss for Fiscals 2023, 2024 and 2025, the components of which are also expressed as a percentage of restated total income for such periods:
| Particulars | Fiscal | |||||
| 2025 | 2024 | 2023 | ||||
| Amount | Percentage of total income | Amount | Percentage of total income | Amount | Percentage of total income | |
| ( Rs in Lakhs) | (%) | ( Rs in Lakhs) | ( Rs in Lakhs) | (%) | ||
| Income | ||||||
| Revenue from operations | 27,943.51 | 99.21% | 18,276.16 | 99.11% | 12,023.63 | 98.79% |
| Other income | 221.26 | 0.79% | 163.29 | 0.89% | 147.10 | 1.21% |
| Total Income | 28,164.77 | 100.00% | 18,439.45 | 100.00% | 12,170.73 | 100.00% |
| Expense | ||||||
| Cost of material consumed | 12,369.54 | 43.92% | 6,769.07 | 36.71% | 4,054.40 | 33.31% |
| Direct Project Expenses | 8,553.97 | 30.37% | 6,980.74 | 37.86% | 4,578.68 | 37.62% |
| Employee Benefits Expense | 3,132.15 | 11.12% | 2,859.96 | 15.51% | 1,871.09 | 15.37% |
| Finance Costs | 600.49 | 2.13% | 524.40 | 2.84% | 440.19 | 3.62% |
| Depreciation and Amortization Expenses | 119.06 | 0.42% | 132.28 | 0.72% | 132.05 | 1.08% |
| Other Expenses | 322.25 | 1.14% | 219.76 | 1.19% | 326.52 | 2.68% |
| Total Expense | 25,097.46 | 89.11% | 17,486.21 | 94.83% | 11,402.93 | 93.69% |
| Profit before tax | 3,067.31 | 10.89% | 953.24 | 5.17% | 767.80 | 6.31% |
| Tax Expenses | ||||||
| Current Tax | 744.38 | 2.64% | 354.69 | 1.92% | 219.17 | 1.80% |
| Deferred Tax | 110.94 | 0.39% | (142.70) | (0.77%) | (77.73) | (0.64%) |
| (Excess) / Short provision of earlier periods | 3.51 | 0.01% | 0.01 | 0.00% | 2.64 | 0.02% |
| Total tax expenses | 858.83 | 3.05% | 212.00 | 1.15% | 144.08 | 1.18% |
| Restated Profit/(Loss) for the year | 2,208.48 | 7.84% | 741.24 | 4.02% | 622.27 | 5.12% |
Fiscal 2025 Compared to Fiscal 2024 Total Income
Total income increased substantially by 52.74% from Rs 18,439.45 lakhs for Fiscal 2024 to Rs 28,164.77 lakhs for Fiscal 2025 due to significant increases in revenue from operations.
Revenue from operations
Revenue from operations increased by 52.90% from Rs 18,276.16 lakhs for Fiscal 2024 to Rs 27,943.51 lakhs for Fiscal 2025, primarily due to increases in income from revenue from underground cable projects and revenue from operation and maintenance. Revenue from underground cable projects increased by 152.73% in Fiscal 2025 as compared to Fiscal 2024, while, revenue from substation EPC Projects increased by 71.75 % in the same period. Detailed bifurcation of each vertical is as set forth below:
| Revenue from operations | Fiscal 2025 | Fiscal 2024 | Increase/ decrease |
| in Lakhs) | (%) | ||
| Transmission line project | 14,465.63 | 10,727.20 | 34.85% |
| Substation EPC project | 2,324.76 | 1,353.61 | 71.75% |
| Under ground cabling | 7,955.63 | 3,147.91 | 152.73% |
| Operation and maintenance | 3,129.62 | 2,986.57 | 4.79% |
| Other operating revenue | 67.87 | 60.87 | 11.50% |
| Total | 27,943.51 | 18,276.16 | 52.90% |
The growth in revenue from underground cabling is primarily attributable to the receipt of integrated EPC projects under this segment. Until Fiscal 2024, the Company was executing underground cable laying projects for only two customers. Leveraging the credentials and experience gained from these projects, the Company enhanced its focus on this segment in Fiscal 2025, leading to the award of higher-value projects in Fiscal 2024, which were subsequently executed in Fiscal 2025.
In addition, revenue from substation EPC Projects increased by 71.75%, rising from Rs1,353.61 lakhs in Fiscal 2024 to Rs2,324.76 lakhs in Fiscal 2025. This growth was primarily driven by the receipt and execution of higher-value new projects during the year.
Other Income:
Other income increased by 35.50% from Rs163.29 lakhs for Fiscal 2024 to Rs 221.26 lakhs for Fiscal 2025, primarily due to: (i) a 15.09% increase in interest income on fixed deposit from Rs141.05 lakhs for Fiscal 2024 to Rs 162.34 lakhs for Fiscal 2025, (ii) a 406.09% increase in profit on sale of PPE from Rs1.15 lakhs for Fiscal 2024 to Rs5.82 lakhs for Fiscal 2025, (iii) a 2.28% increase in rental income from Rs16.23 lakhs for Fiscal 2024 to Rs16.60 lakhs for Fiscal 2025 and (iv) a 1,130.00% increase in miscellaneous income from Rs2.80 lakhs for Fiscal 2024 to Rs34.44 lakhs for Fiscal 2025.
Total Expenditure:
Our total expenses increased by 43.53% from Rs 17,486.21 lakhs for Fiscal 2024 to Rs 25,097.46 lakhs for Fiscal 2025. The reasons for change are discussed below:
Cost of Material Consumed
Cost of Material consumed of the Company increased by 82.74% from Rs 6,769.07 lakhs for Fiscal 2024 to Rs 12,369.54 lakhs for Fiscal 2025. Cost of material consumed as a percentage of total income has increased from 36.71% for Fiscal 2024 to 43.92% of total income for Fiscal 2025. Our cost of material is calculated as purchase made during the year for material, stores, spares and tools consumed (purchase) along with opening stock at the commencement of financial year and after deducting closing stock at the end of the financial year.
Our opening stock for the Fiscal 2025 was Rs 194.79 lakhs as compared to Rs 266.95 lakhs in Fiscal 2024. Our total purchase of material, stores, spares and tools consumed (purchase) during Fiscal 2025 was Rs 12,921.91 lakhs as compared to Rs 6,696.91 lakhs in Fiscal 2024, showing increase of 92.95%. While, our closing stock for the Fiscal 2024 was Rs 194.79 lakhs, it was increased to Rs 747.16 lakhs in Fiscal 2025.
Our total Project related expenses increased by 22.54%, from Rs6,980.74 lakhs in Fiscal 2024 to Rs8,553.97 lakhs in Fiscal 2025. However, as a proportion of total income, these expenses declined from 37.86% in Fiscal 2024 to 30.37% in Fiscal 2025.
Additionally, the primary reason for such decline is due to decrease in Right of way and crop compensation expenses, from Rs2,638.23 lakhs in Fiscal 2024 to Rs1,250.27 lakhs in Fiscal 2025. These expenses repres ented 14.31% of total income in Fiscal 2024, compared to only 4.44% in Fiscal 2025.
For laying electricity transmission lines, our company erects towers at stipulated intervals and conductors are strung on these towers maintaining a safe height depending on the voltage and other geographical parameters. The tower base area and corridor of land underneath the strung conductors between two towers forms Row. In certain projects, scope of work of our company includes expenses in relation to Right of Way and crop compensation, that we are required to pay to respective person from whom such right is being acquired.
Employee Benefit Expenses
Our employee benefit expenses increased by 9.52% from Rs 2,859.96 lakhs for Fiscal 2024 to Rs 3,132.15 lakhs for Fiscal 2025, primarily due to an increase in full time employee headcount to 1,290 as at March 31, 2025 from 1,211 as at March 31, 2024 together with the annual wage increase resulting in an increase in salaries and annual wage increases.
Finance Costs
Our finance costs increased by 14.51% from Rs 524.40 lakhs in Fiscal 2024 to Rs 600.49 lakhs in Fiscal 2025. The increase was primarily on account of interest expenses and other borrowing, which rose to Rs 515.58 lakhs in Fiscal 2025 as compared to Rs 486.91 lakhs in Fiscal 2024. Other borrowing cost increased primarily due to increase of Bank charges & Bank commission and processing fees by 10.68% from Rs168.75 lakhs in Fiscal 2025 from Rs152.46 lakhs in Fiscal 2024.
Depreciation and Amortisation Expense
Our depreciation and amortization charge decreased by 9.99% from Rs132.28 lakhs for Fiscal 2024 to Rs119.06 lakhs for Fiscal 2025. Decrease in depreciation and amortisation expense is mainly on account of lower additions of new assets and written down value method of depreciation.
Other Expenses
Our other expenses increased by 46.64% from Rs219.76 lakhs for Fiscal 2024 to Rs322.25 lakhs for Fiscal 2025. Our total other expenses represented 1.14% of total income for Fiscal 2025 and 1.19% of total income for Fiscal 2024. The primary reason for increase in other expenses is attributable to:
(i) Increase of 680.71% in allowances for expected credit loss from Rs 8.71 lakhs in Fiscal 2024 to Rs 68.00 lakhs in Fiscal 2025.
(ii) Increase of 143.46% in legal and professional fees from Rs 7.64 lakhs in Fiscal 2024 to Rs 18.60 lakhs in Fiscal 2025.
(iii) Increase of 24.63% in repair and maintenance expenses from Rs 29.96 lakhs in Fiscal 2024 to Rs 37.34 lakhs in Fiscal 2025.
Profit before Tax (PBT)
As a result of the factors outlined above, our profit before taxes increased by 221.78% from Rs 953.24 lakhs for Fiscal 2024 to Rs 3,067.31 lakhs for Fiscal 2025. Profit before tax as a percentage of total income increased from 5.17% in Fiscal 2024 to 10.89% in Fiscal 2023.
Tax Expenses
Tax expense was Rs 858.83 lakhs and Rs 212.00 lakhs for the Fiscal 2025 and Fiscal 2024, respectively showing increase of 305.11%. Increase in tax expenses was primarily attributable to overall increase in Revenue from Operations and profit before tax.
Profit after Tax (PA T)
Due to the factors discussed above, our profit for the year increased by 197.94% from Rs 741.24 lakhs for Fiscal 2024 to Rs 2,208.48 lakhs for Fiscal 2025. Profit after tax as a percentage of total income increased from 4.02% in Fiscal 2024 to 7.84% in Fiscal 2025. The improvement in net profit margin in Fiscal 2025 was primarily driven by lower Right of way and crop compensation expenses, which declined to Rs1,250.27 lakhs (4.44% of total income) in Fiscal 2025 as compared to Rs2,638.23 lakhs (14.31% of total income) in Fiscal 2024. We have been awarded new specialized EPC projects in transmission lines and underground cables, which typically carry higher margins. Consequently, these projects have contributed to an improvement in our overall profit margin.
Fiscal 2024 Compared to Fiscal 2023
Total Income
Total income increased substantially by 51.51% from Rs12,170.73 lakhs for Fiscal 2023 to Rs18,439.45 lakhs for Fiscal 2024 due to significant increases in revenue from operations.
Revenue from operations
Revenue from operations increased by 52.00% from Rs 12,023.63 lakhs for Fiscal 2023 to Rs 18,276.16 lakhs for Fiscal 2024, primarily due to increases in revenue from transmission lines EPC projects and revenue from operation and maintenance. This increase was partially offset by a decrease in income from revenue from substation EPC projects as set forth below:
| Revenue from operations | Fiscal 2024 | Fiscal 2023 | Increase/ decrease |
| ( Rs in Lakhs) | (%) | ||
| Transmission lines EPC projects | 10,727.20 | 7,272.00 | 47.51% |
| Substation EPC projects | 1,353.61 | 1,394.27 | (2.92%) |
| Underground cable projects | 3,147.91 | 1,281.60 | 145.62% |
| Operation and maintenance | 2,986.57 | 2,069.41 | 44.32% |
| Other operating revenue | 60.87 | 6.35 | 858.58% |
| Total | 18,276.16 | 12,023.63 | 52.00% |
The increase in revenue from transmission lines EPC projects is primarily attributable to the execution of high-value projects during Fiscal 2024, resulting in revenue growth from Rs7,272.00 lakhs in Fiscal 2023 to Rs10,727.20 lakhs in Fiscal 2024.
The primary reason for increase in revenue from underground cable projects is on account of receipt of integrated EPC projects under the same segment. Prior to Fiscal 2024, our company was providing services of underground cabling for only 2 customers. On the basis of the credentials and experience of such prior projects, our company increased its focus on underground cabling in Fiscal 2024, which resulted in increase in order value and number of customers to 4 customers.
Other Income:
Other income increased by 11.01% from Rs147.10 lakhs for Fiscal 2023 to Rs 163.29 lakhs for Fiscal 2024, primarily due to 21.74% increase in interest income on fixed deposit from Rs115.86 lakhs for Fiscal 2023 to Rs 141.05 lakhs for Fiscal 2024.
Total Expenditure:
Our total expenses increased by 53.35% from Rs 11,402.93 lakhs for Fiscal 2023 to Rs 17,486.21 lakhs for Fiscal 2024. The reasons for change are discussed below:
Cost of Material Consumed
Cost of material consumed of the Company increased by 66.96% from Rs 4,054.40 lakhs for Fiscal 2023 to Rs 6,769.07 lakhs for Fiscal 2024. Cost of material consumed as a percentage of total income has increased from 33.31% for Fiscal 2023 to 36.71% for Fiscal 2024. Our cost of material is calculated as purchase made during the year for material, stores, spares and tools consumed (purchase) along with opening stock at the commencement of financial year and after deducting Closing stock at the end of the financial year.
Our opening stock for the Fiscal 2024 was Rs 266.95 lakhs as compared to Rs 295.36 lakhs in Fiscal 2023. Our total purchase of material, stores, spares and tools consumed (purchase) during Fiscal 2024 was Rs 6,696.91 lakhs as compared to Rs 4,025.99 lakhs in Fiscal 2023, showing increase of 66.34%. While, our closing stock for the Fiscal 2023 was Rs 266.95 lakhs, it was decreased to Rs 194.79 lakhs in Fiscal 2024.
Project Related Expenses
Project related expenses increased by 52.46 %, from Rs 4,578.68 lakhs in Fiscal 2023 to Rs 6,980.74 lakhs in Fiscal 2024. However, as a proportion of total income, remain consistent from 37.62% in Fiscal 2023 to 37.86% in Fiscal 2024.
Additionally, right of way and crop compensation expenses increased significantly by 302.67 %, from Rs655.18 lakhs in Fiscal 2023 to Rs 2,638.23 lakhs in Fiscal 2024. These expenses represented 14.31% of our total income in Fiscal 2024, compared to only 5.38% in Fiscal 2023.
Employee Benefit Expenses
Our employee benefit expenses increased by 52.85% from Rs 1,871.09 lakhs for Fiscal 2023 to Rs 2,859.96 lakhs for Fiscal 2024, primarily due to an increase in full time employee headcount to 1,211 as at March 31, 2024 from 978 as at March 31, 2023 together with the annual wage increase resulting in an increase in salaries and annual wage increases.
Finance Costs
Our finance costs increased by 19.13% from Rs 440.19 lakhs in Fiscal 2023 to Rs 524.40 lakhs in Fiscal 2024. The increase was primarily on account of other borrowing cost, which rose to t 158.42 lakhs in Fiscal 2024 as compared to t 83.00 lakhs in Fiscal 2023. Other borrowing cost increased primarily due to increase of Bank charges & Bank commission and processing fees by 86.58% from ^81.71 lakhs in Fiscal 2023 from Rs152.46 lakhs in Fiscal 2024.
Depreciation and Amortisation Expense
Our depreciation and amortization charge increased by 0.17% from Rs132.05 lakhs for Fiscal 2023 to Rs132.28 lakhs for Fiscal 2024.
Other Expenses
Our other expenses decreased by 32.70% from Rs326.52 lakhs for Fiscal 2023 to Rs219.76 lakhs for Fiscal 2024. Our total other expenses represented 1.19% of total income for Fiscal 2024 and 2.68% of total income for Fiscal 2023. The primary reason for decrease in other expenses is attributable to:
(i) Decrease of 86.05% in allowances for expected credit loss from Rs 62.43 lakhs in Fiscal 2023 to Rs 8.71 lakhs in Fiscal 2024.
(ii) Decrease of 89.74% in donation expenses from Rs 13.25 lakhs in Fiscal 2023 to Rs 1.36 lakhs in Fiscal 2024.
(iii) Decrease of 20.87% in repair and maintenance expenses from Rs 37.86 lakhs in Fiscal 2023 to Rs 29.96 lakhs in Fiscal 2024.
Profit before Tax (PBT)
As a result of the factors explained above, our profit before taxes increased by 24.15% from Rs 767.80 lakhs for Fiscal 2023 to Rs 953.24 lakhs for Fiscal 2024. Profit before tax as a percentage of total income decreased from 6.31% in Fiscal 2023 to 5.17% in Fiscal 2023.
Tax Expenses
Tax expense was Rs212.00 lakhs and Rs144.08 lakhs for the Fiscal 2024 and Fiscal 2023 respectively showing increase of 47.14%. Increase in tax expenses was primarily attributable to overall increase in Revenue from Operations and profit before tax.
Profit after Tax (PA T)
Due to the factors discussed above, our profit for the year increased by 18.84% from Rs 622.87 lakhs for Fiscal 2023 to Rs 741.24 lakhs for Fiscal 2024. Profit after tax as a percentage of total income decreased from 5.12% in Fiscal 2023 to
4.02% in Fiscal 2024. The decline in net profit margin during Fiscal 2024 was primarily attributable to increased right of way and crop compensation expenses, which increased to Rs2,638.23 lakhs (14.31% of total income) as compared to Rs655.18 lakhs in Fiscal 2023 (5.38% of total income).
Selected Restated Statement of Assets and Liabilities
The table below sets forth the principal components of our total assets, equity and liabilities as at the periods indicated in the table below:
| Particulars | As of March 31, | ||
| 2025 | 2024 | 2023 | |
| in Lakhs) | |||
| Total Non-current Assets | 1,972.93 | 3,328.15 | 3,148.36 |
| Total Current Assets | 13,044.21 | 8,456.83 | 7,365.87 |
| Total Assets | 15,017.14 | 11,784.98 | 10,514.23 |
| Total Equity | 7,265.42 | 5,063.65 | 4,336.13 |
| Total Non-current Liabilities | 552.68 | 389.73 | 339.90 |
| Total Current Liabilities | 7,199.04 | 6,331.60 | 5,838.20 |
| Total Liabilities | 7,751.72 | 6,721.33 | 6,178.10 |
| Total Equity and Liabilities | 15,017.14 | 11,784.98 | 10,514.23 |
Our total non-current assets were Rs 3,148.36 lakhs as at March 31, 2023, increasing by 5.71% to Rs 3,328.15 lakhs as at March 31, 2024 and further decreased by 40.72% to Rs 1,972.93 lakhs as at March 31, 2025. The decreased in our noncurrent assets was primarily due to decreased in other financial assets which includes decreased in deposit with bank and deferred tax assets.
Our total current assets were Rs7,365.87 lakhs as at March 31, 2023, increasing by 14.81% to Rs 8,456.83 lakhs as at March 31, 2024 and further increasing substantially by 54.24% to Rs 13,044.21 lakhs as at March 31, 2025. The increase in our total current assets was primarily due to increases in inventories, trade receivables, other financial assets and other current assets.
Our total equity was Rs 4,336.13 lakhs as at March 31, 2023, increasing by 16.78% to Rs 5,063.65 lakhs as at March 31, 2024 and further increasing by 43.48% to Rs 7,265.42 lakhs as at March 31, 2025. The increase in total equity was primarily due to increases in profit for the period / year as well as retained earnings.
Our total non-current liabilities were Rs 339.90 lakhs as at March 31, 2023, increasing by 14.66% to Rs 389.73 lakhs as at March 31, 2024 and further increasing by 41.81% to Rs 552.68 lakhs as at March 31, 2025. This increase was primarily due to increases in security deposit and provision for gratuity.
Our total current liabilities were Rs 5,838.20 lakhs as at March 31, 2023, increasing by 8.45% to Rs 6,331.60 lakhs as at March 31, 2024 and further increasing by 13.70% to Rs 7,199.04 lakhs as at March 31, 2025. The increase was primarily due to trade payables, current tax liability. This increase was partially offset by decreased in short-term borrowing and other current liabilities.
Liquidity and Capital Resources
We have historically financed the expansion of our business and operations primarily through debt financing, owned funds and funds generated from our operations. From time to time, we may obtain loan facilities to finance our capital expenditure and working capital requirements. Further, we believe that after taking into account the expected cash to be generated from our business and operations, the Net Proceeds from the Offer and the proceeds from our existing bank loans, we will have sufficient capital to meet our anticipated capital requirements for our working capital and capital expenditure requirements. For more details, see "Objects of the Offer" on page 108.
Cashflows based on our Restated Financial Information
The following table sets forth certain information relating to our Companys statement of cash flows for the periods indicated below:
| Particulars | Fiscal | ||
| 2025 | 2024 | 2023 | |
| ( Rs in Lakhs) | |||
| Net cash flow | |||
| Net Cash flow from Operating Activities (A) | 1,244.61 | 353.08 | 1,005.40 |
| Net Cash flow from/(Used in) Investing Activities (B) | 139.67 | 107.42 | (80.22) |
| Net Cash flow from/(Used in) Financing Activities (C) | (1,332.86) | (458.50) | (916.48) |
| Net Increase/(Decrease) in cash & cash equivalents | 51.42 | 2.00 | 8.70 |
| Cash & Cash equivalent at the beginning of the year | 17.16 | 15.16 | 6.46 |
| Cash & Cash equivalent at the end of the year | 68.58 | 17.16 | 15.16 |
Net cash flow (used in)/generated from operating activities Fiscal 2025
Net cash flow generated from our operating activities was Rs 1,244.61 lakhs for Fiscal 2025. Our operating profit before working capital changes was Rs 3,778.14 lakhs in Fiscal 2025, which was the result of profit before tax of Rs 3,067.32 lakhs primarily adjusted by depreciation and amortization of Rs 119.06 lakhs, the interest income of Rs (162.34) lakhs, allowance for expected credit loss of Rs68.00 lakhs, finance cost of Rs 600.49 lakhs, Gratuity Expense of Rs 110.09 lakhs, profit on sale of property, plant & equipment of Rs (5.82) lakhs, Dividend Income of Rs (2.06) lakhs and rent income of Rs (16.60) lakhs. Our net investment of working capital was Rs 1,888.34 lakhs. Our movements in working capital primarily comprised of increase in Inventories of Rs 552.37 lakhs, trade receivable of Rs 2,022.11 lakhs, other financial assets and other assets of Rs 854.84 lakhs, and increase in trade payables of Rs 1,610.14 lakhs, decreased in other financial liabilities and other liabilities of Rs 69.16 lakhs. Direct Tax paid during the year was Rs 645.19 lakhs, which resulted in net cash generated from operations of Rs 1,244.61 lakhs.
Fiscal 2024
Net cash flow generated from our operating activities was Rs 353.08 lakhs for Fiscal 2024. Our operating profit before working capital changes was Rs 1,512.67 lakhs in Fiscal 2024, which was the result of profit before tax of Rs 953.22 lakhs primarily adjusted by depreciation and amortization of Rs 132.28 lakhs, the interest income of Rs (141.05) lakhs, allowance for expected credit loss of Rs 8.71 lakhs, finance cost of Rs 524.41 lakhs, Gratuity Expense of Rs 54.54 lakhs, profit on sale of property, plant & equipment of Rs (1.15) lakhs, Dividend Income of Rs (2.06) lakhs and rent income of Rs (16.23) lakhs. Our net investment of working capital was Rs 893.84 lakhs. Our movements in working capital primarily comprised of decreased in Inventories of Rs 72.16 lakhs, increased in trade receivable of Rs 1,207.42 lakhs, other financial assets and other assets of Rs 127.75 lakhs, and increase in trade payables of Rs 368.56 lakhs, increased in other financial liabilities and other liabilities of Rs 0.61 lakhs. Direct Tax paid during the year was Rs 265.75 lakhs, which resulted in net cash generated from operations of Rs 353.08 lakhs.
Fiscal 2023
Net cash flow from our operating activities was Rs 1,005.40 lakhs for Fiscal 2023. Our operating profit before working capital changes was Rs 1,291.98 lakhs in Fiscal 2023, which was the result of profit before tax of Rs 767.81 lakhs primarily adjusted by depreciation and amortization of Rs 132.05 lakhs, the interest income of Rs (115.86) lakhs, allowance for expected credit loss of Rs 62.43 lakhs, finance cost of Rs 440.19 lakhs, loss on sale of property, plant and equipment of Rs1.29, Gratuity Expense of Rs 22.33 lakhs, Dividend Income of Rs (2.06) lakhs and rent income of Rs (16.20) lakhs. Our net investment of working capital was Rs 24.09 lakhs. Our movements in working capital primarily consisted of decreased in Inventories of Rs 28.41 lakhs, other financial assets and other assets of Rs 2,120.79 lakhs and increased trade receivable of Rs 4,104.03 lakhs, and increase in trade payables of Rs 1,517.27 lakhs, other financial liabilities and other liabilities of Rs 413.47 lakhs. Direct Tax paid during the year was Rs 262.49 lakhs, which resulted in net cash generated from operations of Rs 1,005.40 lakhs.
Net cash flow generated from/(used in) investing activities Fiscal 2025
Net cash flow generated from investing activities was Rs 139.67 lakhs for Fiscal 2025, which was primarily attributable to the Purchase of property, plant & equipment of Rs 48.60 lakhs, which was primarily offset by proceeds from sale of property, plant & equipment of Rs 7.27 lakhs and proceeds from interest, dividend and rent income of Rs 181.00 lakhs.
Fiscal 2024
Net cash flow generated from investing activities was Rs 107.42 lakhs for Fiscal 2024, which was primarily attributable to the Purchase of property, plant & equipment of Rs 55.02 lakhs, sales of investment of Rs 0.25 lakhs which was primarily offset by proceeds from sale of property, plant & equipment of Rs 2.85 lakhs and proceeds from interest, dividend and rent income of Rs 159.34 lakhs.
Fiscal 2023
Net cash flow used in investing activities was Rs 80.22 lakhs for Fiscal 2023, which was primarily attributab le to the Purchase of property, plant & equipment of Rs 222.91 lakhs, purchase of investment of Rs 6.74 lakhs, which was primarily offset by proceeds from sale of property, plant & equipment of Rs 15.31 lakhs and proceeds from interest, dividend and rent income of Rs 134.12 lakhs.
Net cash flow (used in) financing activities
Fiscal 2025
Net cash used in financing activities was Rs 1,332.86 lakhs for Fiscal 2025, mainly consisting proceeds from long-term borrowing of Rs 31.97 lakhs, re-payment of short-term borrowing of Rs 690.84 lakhs and long-term borrowings of Rs 73.50 lakhs, and Interest paid on such borrowings of Rs 600.49 lakhs.
Fiscal 2024
Net cash used in financing activities was Rs 458.50 lakhs for Fiscal 2024, mainly consisting proceeds from long-term borrowing of Rs 56.37 lakhs and short-term borrowing of Rs 87.62 lakhs, repayment of long-term borrowings of Rs 78.08 lakhs, and Interest paid on such borrowings of Rs 524.41 lakhs.
Fiscal 2023
Net cash used in financing activities was Rs 916.48 lakhs for Fiscal 2023, mainly consisting proceeds from long-term borrowing of Rs 109.88 lakhs and short-term borrowing of Rs 425.67 lakhs, repayment of long-term borrowings of Rs 1,011.84 lakhs, and Interest paid on such borrowings of Rs 440.19 lakhs.
Financial Indebtedness
The following table sets forth our secured and unsecured debt position as of the below mentioned time period
| Particulars | Fiscal | ||
| 2025 | 2024 | 2023 | |
| ( Rs in Lakhs) | |||
| Non-current borrowings | 104.05 | 145.57 | 167.28 |
| Current borrowings (including current maturity of Non-current borrowing) | 1,786.41 | 2,477.25 | 2,389.63 |
| Total borrowings | 1,890.46 | 2,622.82 | 2,556.91 |
For more information, see "Financial Indebtedness" on page 351..
Contractual Obligation
The table below sets forth our contractual obligations as at March 31, 2025 as per the Restated Financial Information. These obligations primarily relate to our contractual maturities of financial liabilities such as trade payables, other financial liabilities.
| Particulars | Total | Less than 1 years | 1 years to 5 years | More than 5 years |
| ( Rs in Lakhs) | ||||
| Borrowing | 1,890.46 | 1,786.41 | 104.05 | - |
| Trade Payables | 4,516.94 | 4,477.46 | 39.48 | - |
| Other financial liabilities | 406.04 | 204.15 | 201.89 | - |
Contingent Liabilities
The following table sets forth the principal components of our contingent liabilities as at March 31, 2025 as per the Restated Financial Information.
| Particulars | As at March 31, | ||
| 2025 | 2024 | 2023 | |
| ( Rs in Lakhs) | |||
| Contingent liabilities | |||
| Claims against the Company not acknowledged as debts | |||
| Demands raised/ show cause notices issued relating to Income Tax # | 57.29 | 34.80 | 22.27 |
| Demands raised/ show cause notices issued relating to GST # | 110.89 | 92.43 | 92.43 |
See "Restated Financial Information - Notes forming part of the Restated Financial Information - Note 40 Contingent liabilities and commitments".
Capital expenditure
The following table sets forth the historical capital expenditures which were, and we expect our future capital expenditures to be, primarily for the purchase of plant and equipment, intangible assets. Capital expenditure is calculated as a total on net additions made towards property, plant and equipment and intangible assets as per our Restated Financial Information.
| Particulars | Fiscal year ended March 31, | ||
| 2025 | 2024 | 2023 | |
| ( Rs in Lakhs) | |||
| Additions to property, plant and equipment (A) | 21.32 | 43.21 | 151.73 |
| Additions to intangible assets (B) | 0.00 | 0.00 | 0.11 |
| Total (A+B) | 21.32 | 43.21 | 151.84 |
For further details of our Capital Expenditure, see "Restated Financial Statement- Note 2 - Property Plant and Equipment and Note -4 - Intangible Assets " on pages 312 and 314.
We intend to utilize a portion of the Net Proceeds towards capital expenditure. See "Objects of the Offer"" on page 108. The total estimated cost of purchase of machineries is Rs 1,094.05 lakhs entire of which is proposed to be deployed from the Net Proceeds.
Changes in Accounting Policies
There have been no changes in our accounting policies during Fiscal 2023, 2024 and 2025.
Auditors Observations
Our Statutory Auditors have not included any qualifications, reservations or adverse remarks in the Restated Financial Information.
Quantitative and Qualitative Disclosures about Market Risk
We are exposed to market risks that are related to the normal course of our operations such as interest rate, liquidity risk, foreign exchange risk and reputational risk, which may affect economic growth in India and the value of our financial liabilities, our cash flows and our results of operations.
The Company has exposure to the following risks arising from financial instruments:
- Market risk;
- Credit risk; and
- Liquidity risk
Market Risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, receivables, payables and borrowings.
a. Interest Rate Risk
Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Companys position with regards to the interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in it total portfolio.
b. Foreign Currency risk
Currency risk is not material, as the companys primary business activities are within India and does not have significant exposure in foreign currency.
c. Commodity Price risk
Commodity price risk for the company is mainly related to fluctuations in Steel, iron, and other raw material prices linked to various external factors, which can affect the cost of the Company. Since the raw material costs is one of the primary cost drivers, any adverse fluctuation in prices can lead to drop in operating margin. In case of Govt contracts, price escalation is allowed for majority of commodities but in case of private contracts, to manage this risk, the Company identifying various factors. The Company is procuring materials at spot prices. Additionally, whenever there is a benefit of economic of sales processes and policies related to such risks are reviewed and controlled by senior management and also requirements are being monitored by the procurement team.
Credit Risk
Credit risk arises when a customer or counterparty does not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing / investing activities, including deposits with banks. The Company has no significant concentration of credit risk with any counterparty.
Bank deposits are placed with reputed banks / financial institutions. Other financial assets include deposits receivable, interest accrued on deposits and other receivables. These receivables are monitored on a periodic basis for assessing any significant risk of non-recoverability of dues and provision is created accordingly.
Trade receivables are typically unsecured. Credit risk on trade receivables is limited as the Companys customer base substantially includes government promoted undertakings and public sector undertakings. Also, generally the company does not enter into sales transaction with customers having credit loss history. In addition, trade receivable balances are monitored on an on-going basis with the result that the Companys exposure to bad debts is not significant. The portion of the payments retained by the customer until final contract settlement is not considered a significant financing component since it is usually intended to provide customer with a form of security for Company s remaining performance as specified under the contract, which is consistent with the industry practice. The Company does not require collateral in respect of its trade receivables. An impairment analysis is performed at each reporting date using a provision matrix to measure ECL. The provision rates are based on days past due. The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions, if any. In case of disputed trade receivables, the Company performs individual credit risk assessment and creates expected credit loss allowance (ECL) based on internal assessment for such cases.
a. Trade Receivables
The Companys exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry.
Trade receivables are consisting of a large number of customers. The Management has established a credit policy under which each new customer is analysed individually for creditworthiness before the Companys standard payment and delivery terms and conditions are offered. The Companys review includes market check, industry feedback, past financials and external ratings, if they are available. Sale limits are established for each customer and reviewed periodically.
The Company establishes an allowance for impairment that represents its expected credit losses in respect of trade and other receivables. The management uses a simplified approach for the purpose of computation of expected credit loss for trade receivables. The Companys receivables can be classified into two categories, one is from the customers/ dealers in the market and second one is from the Government of India/State. As far as receivables from the Government are concerned, credit risk is Nil.
In monitoring customer credit risk, customers are reviewed according to their credit characteristics, including whether they are an individual or a legal entity, their geographic location, industry and existence of previous financial difficulties. The ageing analysis of the receivables has been considered from the date the invoice falls due.
b. Cash and bank balances
Credit Risk on cash and cash equivalent, deposits with the banks is generally low as the said deposits have been made with the banks who have been assigned high credit rating by international and domestic rating agencies.
c. Others
Other than trade receivables and others reported above, the Company has no other material financial assets which carries any significant credit risk.
Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are set led by delivering cash or another financial asset. The Companys approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are fallen due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companys reputation.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, company treasury maintains flexibility in funding by maintaining availability under committed credit lines.
Management monitors rolling forecasts of the Companys liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected future cash flows. This is generally carried out in accordance with practice and limits set by the Company. These limits vary by location to take into account requirement, future cash flow and the liquidity in which the entity operates. In addition, the Companys liquidity management strategy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.
Related Party Transactions
We have, in the course of their business and operations, entered into transactions with related parties, such as rent paid, labour purchase, credit note, loan taken and repayment thereof, renumeration to KMPs, directors, and relatives, salary paid. For further information see "Restated Financial Statement - Note - 41 - Related Party Disclosures" on page 330 of this Draft Red Herring Prospectus.
Significant Economic Changes
Other than as described above, to the best of the knowledge of our management, there are no other significant economic changes that materially affect or are likely to affect income from continuing operations. For further details, please see "Our Business - Overview " and "RiskFactors" on pages 225 and 33, respectively.
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.
Effect Of Inflation
We are affected by inflation as it has an impact on the material cost, wages, etc. in line with changing inflation rates; we rework our margins so as to absorb the inflationary impact.
Material Frauds
There are no material frauds, as reported by our Statutory Auditor, committed against our Company in the last three Fiscals.
Unusual or Infrequent Events of Transactions
Except as described in this Draft Red Herring Prospectus, there have been no other events or transactions that, to our knowledge, may be described as "unusual" or "infrequent".
Known Trends or Uncertainties
Our business has been affected and we expect will continue to be affected by the trends identified above in the heading titled "Managements Discussion and Analysis of Financial Condition and Results of Operations " on page 354 and the uncertainties described in the section titled "RiskFactors" beginning on page 33 of this Draft Red Herring Prospectus. To our knowledge, except as described or anticipated in this Draft Red Herring Prospectus, there are no known factors which we expect will have a material adverse impact on our revenues or income from continuing operations.
Future Relationship between Cost and Income
Other than as described above and in "Our Business" and "Risk Factors" on pages 225 and 33, respectively, to the knowledge of our management, there are no known factors that might affect the future relationship between costs and revenues.
New Products or Business Segments
Other than as disclosed in this section and in "Our Business" and "Object of the Offer" on page 225 and 108, respectively, as on the date of this Draft Red Herring Prospectus, there are no new products or business segments that have had or are expected to have a material impact on our business prospects, results of operations or financial condition.
Extent to which Material Increases in Net Sales or Revenue are due to Increased Sales Volume, Introduction of New Products or Services or Increased Sales Prices
Changes in revenue in the last three Financial Years are as described in "Managements Discussion and Analysis of Financial Condition and Results of Operations - Fiscal 2025 compared with Fiscal 2024 - Revenue from Operations" and "Managements Discussion and Analysis of Financial Condition and Results of Operations - Fiscal 2024 compared with Fiscal 2023 - Revenue from Operations" above on pages 374 and 376 respectively.
Seasonality
Our operating results may fluctuate from quarter-to-quarter due to seasonality, with a noticeable concentration of activities toward the third and fourth quarters of the Financial Year.
Significant dependence on a single or few suppliers or customers
A significant portion of our revenue is derived from a limited number of clients. or associated risks, see "Risk Factor 5
We are dependent on our top ten customers who contribute to more than 95.68%, 97.66% and 96.76% of our revenue from operations in Fiscals 2025, 2024 and 2023, respectively and the loss of any of these customers or a significant reduction in purchases by any of them could adversely affect our business, results of operations andfinancial condition " on page 38.
The percentage of contribution of our Companys customer vis-a-vis the total revenue from operations respectively for the indicated period on restated basis is as follows:
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Revenue from operation generated | Percentage of revenue from operations | Revenue from operation generated | Percentage of revenue from operations | Revenue from operation generated | Percentage of revenue from operations | |
| ( Rs in Lakhs) | (%) | ( Rs in Lakhs) | (%) | ( Rs in Lakhs) | (%) | |
| Largest customer | 14,085.06 | 50.41% | 7,676.24 | 42.00% | 5,131.58 | 42.68% |
| Top 3 Customers | 21,600.15 | 77.30% | 13,422.48 | 73.44% | 8326.56 | 69.25% |
| Top 5 Customers | 24,045.36 | 86.05% | 15,689.22 | 85.85% | 10,168.77 | 84.58% |
| Top 10 Customers | 26,736.74 | 95.68% | 17,845.91 | 97.66% | 11,634.05 | 96.76% |
The percentage of contribution of our Companys supplier vis-a-vis the total purchase respectively for indicated period on restated basis is as follows:
| Particulars | For the Financial Year ended March 31, 2025 | For the Financial Year ended March 31, 2024 | For the Financial Year ended March 31, 2023 | |||
| Amount ( Rs in lakhs) | % of total purchase | Amount ( Rs in lakhs) | % of total purchase | Amount ( Rs in lakhs) | % of total purchase | |
| Material Purchase from our top supplier | 2,078.02 | 16.08% | 986.12 | 14.73% | 578.44 | 14.37% |
| Material Purchase from our top 3 suppliers | 4,903.68 | 37.95% | 2,145.17 | 32.04% | 1,441.48 | 35.80% |
| Material Purchase from our top 5 suppliers | 6,670.56 | 51.62% | 3,081.94 | 46.02% | 2,137.74 | 53.09% |
| Material Purchase from our top 10 suppliers | 9,427.30 | 72.96% | 4,502.02 | 67.22% | 2,953.72 | 73.35% |
Competitive Conditions
We expect to continue to compete with existing and potential competitors. For details, please refer to the discussions of our competition in the sections "Risk Factors", "Industry Overview " and "Business Overview " on pages 33, 145, and 225 respectively.
Significant Developments after March 31, 2025, that may affect our future results of operations
Except as set out in this Draft Red Herring Prospectus, to our knowledge, no circumstances have arisen since the date of the last financial statements as disclosed in this Draft Red Herring Prospectus which materially or adversely affect or are likely to affect, our operations or profitability, or the value of our assets or our ability to pay our material liabilities within the next 12 months.
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