OSEL Devices Ltd Management Discussions

The following discussion is intended to convey managements perspective on our financial condition and results of operations for the financial years ended March 31, 2024, 2023 and 2022. One should read the following discussion and analysis of our financialcondition and results of operations in conjunction with our section titled "Financial Statements" and the chapter titled "Financial Statement" on page 193 of the Red Herring Prospectus. This discussion contains forward-looking statements and reflects our current views with respect to future events and our financial performance and involves numerous risks and uncertainties, including, but not limited to, those described in the section entitled "Risk Factors" on page 26 of this Red Herring Prospectus. Actual results could differ materially from those contained in any forward-looking statements and for furtherdetails regarding forward-looking statements, kindly refer the chapter titled "Forward-Looking Statements" on page 18 of this Red Herring Prospectus. Unless otherwise stated, the financial information of our Company used in this section has been derived from the Restated Financial Information. Our financial year ends on March 31 of each year. Accordingly, unless otherwise stated, all references to a particular financial year are to the 12-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to Osel Devices Limited, our Company. Unless otherwise indicated, financial information included herein are based on our Restated Financial Statements for the financial years ended March 31, 2024, 2023 and 2022 included in this Red Herring Prospectus beginning on page 193 of this Red Herring Prospectus.

BUSINESS OVERVIEW

Osel is driven by a passion for innovation and a commitment to excellence. As a one of the leading provider of technology solutions, Osel specialize in creating transformative products that empower individuals, businesses, and communities to thrive in a rapidly evolving digital world. Our Company manufacture a comprehensive range of LED display systems and the latest hearing aids, including all major components, at our ultra-modern plant. Osel manufacturing plant in Greater Noida was inaugurated by Union Minister Shri Pratap Sarangi.

We manufacture comprehensive range of LED display systems. We are equipped with software and hardware capabilities. Our LED display systems are enabled with content management system which allows it to connect to phone or computer and display on screen. Equipped with the latest technology and adhering to rigorous quality control standards, we produce a wide range of high-performance components and systems. This vertical integration ensures consistency and excellence in every product we deliver. The LED display systems manufactured by us have been used by corporate for commercial usage such as advertising media, billboards, corporate meeting rooms, presentations, display promotions, command control centre and front sign boards.

We also manufacture latest hearing aids commonly known as assisted healthcare devices. Our hearing aid are designed to support individuals with disabilities, elderly person and chronic patients, who are having low hearing level, in performing everyday activities more effectively to enhance quality of life. Our major customer for hearing aid is Artificial Limbs Manufacturing Corporation of India. We manufacture Digital Programable and Non-Programmable Hearing Aids.

Our Company has manufacturing and assembling setup in Greater Nodia at Signature Tower, 1st Floor Plot No 3, Sector Knowledge Park-III, Sector 34, Gautam Buddha Nagar, Noida 201 307, Uttar Pradesh, India.

Our manufacturing facility in Greater Noida is having production capacity of 15,000 square feet of LED display per annum and 4,00,000 units of Hearing Aid per annum. The manufacturing plant is equipped with Modern Equipment, ensures Quality Control, follows Sustainable Practices and is an Innovation Hub for us. Our manufacturing units consists of two separate line for design, manufacturing and assembling of LED display systems and the latest hearing aids, and R&D facility.

To ensure that we supply quality products which meet the applicable standards, we have set up a Research and

Development facility ("R&D facility"), which consists of our quality assurance and quality control teams who check and conduct various tests in our ‘in-house laboratory on the raw materials and our products at various stages starting from receiving of raw materials to the finished products manufactured by us.

For detailed information on the business of our Company please refer to "Our Business" beginning on page numbers 124 of this Red Herring Prospectus.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST AUDITED FINANCIALS

After the date of last Audited accounts i.e. March 31, 2024, the Directors of our Company confirm that, there have not been any significant material developments.

FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factor" beginning on page 26 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

Our commercial success is largely dependent upon our ability to develop and design innovative products suitable for the requirements of our customers. Our inability to effectively utilize and manage our ability to develop and design innovative products would impact our business, revenue and profitability.

Our Company is reliant on the demand from the healthcare industry for a significant portion of our revenue. Any downturn in the healthcare industry or an inability to increase or effectively manage our sales could have an adverse impact on our Companys business and results of operations.

The commercial success of our products depends to a large extent on the success of the products of our end use customers. If the demand for the end use products in which our products are used as a raw materials declines, it could have a material adverse effect on our business, financial condition and results of operations.

We depend on a few customers of our products, for a significant portion of our revenue, and any decrease in revenues or sales from any one of our key customers may adversely affect our business and results of operations.

We import majority of our raw materials from China. Any inability to pass on increased price of the key raw materials, used for manufacturing our products may affect our profitability.

Our Group Company is engaged in a similar line of business as our Company and may compete with us.

We also provide our products to various public sector units and undertakings which exposes us to risks inherent in doing business with them and may adversely affect our business, results of operations and financial condition.

Any failure in our quality control processes may adversely affect our business, results of operations and financial condition. We may face product liability claims and legal proceedings if the quality of our products does not meet our customers expectations.

We are dependent on information technology systems in carrying out our business activities and it forms an integral part of our business. Further, if we are unable to adapt to technological changes and successfully implement new technologies or if we face failure of our information technology systems, we may not be able to compete effectively which may result in higher costs and would adversely affect our business and results of operations.

If we are not able to obtain, renew or maintain our statutory and regulatory licenses, registrations and approvals required to operate our business, it may have a material adverse effect on our business, results of operations and financial condition.

Our Company is subject to foreign exchange control regulations which can pose a risk of currency fluctuations.

Any change in government policies resulting in increases in taxes payable by us may have a material adverse effect on our business, results of operations and financial condition. Other factors beyond our control

We generate our major portion of sales from our operations in certain geographical regions. Any adverse developments affecting our operations in these regions could have an adverse impact on our revenue and results of operations.

DISCUSSION ON RESULT OF OPERATION

Our Significant Accounting Policies

For Significant accounting policies please refer Significant Accounting Policies, under Chapter titled "Restated Financial Statements"beginning on page 193 of the Red Herring Prospectus.

Overview of Revenue & Expenditure

Our revenue and expenses are reported in the following manner:

Revenues

Revenue of operations

Our Companys revenue is primarily generated from:

Sale of LED and its spare parts; and

Sale of Hearing Aids

Other Income

Our other income mainly consists of Interest on deposits, Duty Drawback and misc. income.

The below table show our revenue for the fiscal 2024, 2023 and 2022:

	For the period ended
Particulars	March 31, 2024	March 31, 2023	March 31, 2022
Income
Revenue from Operations	13,223.35	8,188.68	6,524.53
% of total revenue	99.66%	99.92%	99.53%
Other income	45.17	6.90	30.96
% of total revenue	0.34%	0.08%	0.47%
Total Revenue	13,268.52	8,195.58	6,555.49

Expenditure

Our total expenditure primarily consists of Cost of Material Consumed, Changes in Inventories of Finished Goods, Employee Benefit Expenses, Finance Cost, Depreciation & Amortization and Other Expenses.

Cost of Raw Material Consumed

This represents purchases related to raw material, packing material and consumables and other direct expenses.

Changes in Inventories of Finished Goods

This represents changes in inventories of finished goods.

Employment Benefit Expenses

It includes salaries and allowances, directors remuneration, contributions to welfare funds, provision for gratuity and other expenses.

Other Expenses

It includes Audit Fees, Business Facilitation Expenses, Clearing, Forwarding and Freight expenses, Conveyance Expenses, Electricity, Fuel & Water Expenses, Legal & Professional Consultancy, Misc. Expenses, Foreign Exchange Gain & Loss, Postage Courier & Office Expenses, Office Maintenance , Interest, Fees, Fines & Taxes Interest on TDS , GST Late Fees, GST Interest, Tender, Tools & Valuation charges, Discount and Contract Delay Charges, Printing & Stationery, Insurance Expenses , Rent, Rate & Taxes, Repairs and Maintenance charges, Research & Service charges , Software & Subscription charges, Telephone & Internet Expenses, and Tour & Travelling Expenses.

Finance Costs

Our finance costs mainly include interest on borrowing and bank charges.

Depreciation

Depreciation includes depreciation and amortization.

RESULTS OF OUR OPERATION

Particulars	31-Mar-24	31-Mar-23	31-Mar-22
Incomes:
Revenue from Operations	13,223.35	8,188.68	6,524.53
% of total revenue	99.66%	99.92%	99.53%
% Increase/(Decrease)	61.48%	25.51%	13.58%
Other income	45.17	6.90	30.96
% of total revenue	0.34%	0.08%	0.47%
% Increase/(Decrease)	554.68%	-77.71%	26.47%
Total Revenue	13,268.52	8,195.58	6,555.49
% Increase/(Decrease)	61.90%	25.02%	13.64%
Expenses:
Cost of Material Consumed	10,491.63	7,288.49	6,081.99
% of total revenue	79.07%	88.93%	92.78%
% Increase/(Decrease)	43.95%	19.84%	19.02%
Changes in Inventories of Finished		(359.34)	(267.07)
Goods, and Stock-in-Trade	(311.80)
% of total revenue	(2.35%)	(4.38%)	(4.07%)
% Increase/(Decrease)	(13.23%)	34.55%	3104.41%
Employee Benefit expenses	469.82	194.82	80.08
% of total revenue	3.54%	2.38%	1.22%
% Increase/(Decrease)	141.15%	143.29%	-49.36%
Other Expenses	330.59	203.24	195.76
% of total revenue	2.49%	2.48%	2.99%
% Increase/(Decrease)	62.66%	3.82%	-5.03%
Total Expense	10,980.23	7,327.21	6,090.76
% of total revenue	82.75%	89.40%	92.91%
% Increase/(Decrease)	49.86%	20.30%	11.43%
Profit before Interest, Depreciation and Tax	2,288.29	868.37	464.73
% of total revenue	17.25%	10.60%	7.09%
Depreciation and amortization Expenses	95.26	58.12	56.15
% of total revenue	0.72%	0.71%	0.86%
% Increase/(Decrease)	63.90%	3.51%	10.25%
Profit before Interest and Tax	2,193.03	810.25	408.58
% of total revenue	26.76%	9.89%	6.23%
Financial Cost	338.47	113.53	110.03
% of total revenue	2.55%	1.39%	1.68%
% Increase/(Decrease)	198.13%	3.18%	119.36%
Profit before Tax and Extraordinary Expenses	1,854.56	696.72	298.55
% of total revenue	13.98%	8.50%	4.55%
Extraordinary Expenses	-	-	-
% of total revenue	-	-	-
% Increase/(Decrease)	-	-	-
Restated Profit/(Loss) before tax	1,854.56	696.72	298.55
% of total revenue	13.98%	8.50%	4.55%
% Increase/(Decrease)	166.19%	133.36%	47.98%
Tax expenses/(income)
Current Tax	528.60	222.73	81.45
Deferred Tax	20.75	7.98	4.79
Total tax expenses	549.35	230.71	86.24
% of total revenue	4.14%	2.82%	1.32%

 

Particulars	31-Mar-24	31-Mar-23	31-Mar-22
Restated profit/(loss) after Tax	1,305.21	466.00	212.31
% of total revenue	9.84%	5.69%	3.24%
% Increase/(Decrease)	180.09%	119.49%	56.11%

* includes other income

Segment-wise Revenue Breakup

Segments	March 31, 2024		March 31, 2023		March 31, 2022
	( in lakhs)	As a % of total Revenue	( in lakhs)	As a % of total Revenue	( in lakhs)	As a % of total Revenue
Revenue from Hearing Aid	8,461.52	63.99%	6,339.03	77.41%	2,699.24	41.37%
Revenue from LED Display	4,761.83	36.01%	1,849.65	22.59%	3,825.29	58.63%
Total	13,223.35	100.00%	8,188.68	100.00%	6,524.53	100.00%

Our income is dependent upon few major customers, details of the same are as following:

Particulars	Fiscal 2024		Fiscal 2023		Fiscal 2022
	Amount	Amount	Amount	Percentage (%)	Amount	Percentage (%)
Top 10 customers	12,001.25	90.76%	7,687.99	93.89%	6,391.50	97.96%
Top 5 customers	10,752.49	81.31%	6,447.18	78.73%	5,743.48	88.03%

Export Sales

	2024		2023		2022
Country	Value	%	Value	%	Value	%
Mauritius	-	-	0.30	0.00%	210.32	3.22%
Germany	-	-	-	-	-	-
Colombia	-	-	-	-	-	-
Italy	-	-	-	-	-	-
Oman	-	-	-	-	-	-
Belgium	1.64	0.02%	-	-	-	-
Total Sales	1.64	0.02%	0.30	0.00%	210.32	3.22%

Capacity Utilization

	Hearing Aid			LED Display System
Financial Year	Installed Capacity (in Units PA)	Utilized Capacity (in Units PA)	Percentage of utilization (%)	Installed Capacity (in SQFPA)	Utilized Capacity (in SQFTPA)	Percentage of utilization (%)
2021-22	4,00,000	42,380	10.60	15,000	4,900	32.67
2022-23	4,00,000	1,14,298	28.57	15,000	6,200	41.33
2023-24	4,00,000	1,69,915	42.48	15,000	7,125	47.50

Reason for growth in PAT margin in FY2023 as against FY2024

During the year ended March 31, 2024, the Company has manufactured 7,125 sq.ft. of LED display and 1,69,915 hearing aids as against 6,200 sq.tf. of LED displays and 1,14,298 hearing aid for the corresponding period ended during previous year. The Company has also achieved better price relation during the year ended March 31, 2024 as compared to previous year. This has resulted in increased revenue. Further, the cost of purchase of raw materials for the year ended March 31, 2023 were decreased to 81.92% of the revenue as against 90.99% of the revenue of fiscal 2023. This has resulted in increased revenue and profitability.

FISCAL YEAR ENDED MARCH 31, 2024 COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2023

Income from Operations

Total revenue has in terms of value and percentage increased by 5,034.67 Lakhs and 61.48%, from 8,188.68 Lakhs in the fiscal year ended March 31, 2023 to 13,223.35 Lakhs in the fiscal year ended March 31, 2024. During the fiscal year March 31, 2024, our Company has manufactured 7,125 sq. ft. of LED display and 1,69,915 hearing aids as against 6,200 sq.ft of LED display and 1,14,298 hearing aid for the previous year ended March 31, 2023. The Company has also achieved better price relation during the fiscal year ended March 31, 2023 as compared to previous year. This has resulted in increased revenue.

Expenditure

Total Expenditure has in terms of value and percentage increased by 3,915.10 Lakhs and 34.30%, from 7,498.86 Lakhs in the fiscal year ended March 31, 2023 to 11,413.96 Lakhs in the fiscal year ended March 31, 2024. Overall expenditure was increased mainly due to increase in manufacturing activity and higher production.

Cost of Material Consumed

Cost of materials consumed has in terms of value and percentage increased by 3,203.14 Lakhs and 43.95 %, from 7,288.49 Lakhs in the fiscal year ended March 31, 2023 to 10,491.63 Lakhs in the fiscal year ended March 31, 2024.

Cost of materials consumed was increased mainly due to increase in manufacturing activity and higher production. During the year ended March 31, 2024, our Company has manufactured 7,125 sq.ft. of LED display and 1,69,915 hearing aids as against 6,200 sq.tf. of LED displays and 1,14,298 hearing aid for the corresponding year ended during previous year. This has resulted in higher cost of material consumed.

Changes in Inventories of Finished Goods

Changes in Inventories of Finished Goods has increased by 47.54 Lakhs, from (359.34) Lakhs in the fiscal year ended March 31, 2023 to (311.80) Lakhs in the fiscal year ended March 31, 2024. Changes in Inventories of Finished Goods was decreased on account of increase in sale volume.

Employee Benefits expenses

Employee Benefit Expenses has in terms of value and percentage increased by 274.99 Lakhs and 141.15% from 194.82 Lakhs in the fiscal year ended March 31, 2023 to 469.82 Lakhs in the fiscal year ended March 31, 2024. The overall employee cost was increased due to increase in staff strength and general increment in salary and incentives to employees.

Other Expenses

Other Expenses has in terms of value and percentage increased by 127.35 Lakhs and 62.66% from 203.24 Lakhs in the fiscal year ended March 31, 2023 to 330.59 Lakhs in the fiscal year ended March 31, 2024. The increase was mainly on account of increase in Audit Fees, Conveyance Expenses, Foreign Exchange Gain & Loss, Postage Courier & Office Expenses, Tender, Tools & Valuation charges, Discount and Contract Delay Charges, Insurance Expenses, Rent, Rate & Taxes and Tour & Travelling Expenses.

EBIDTA

Profit before Interest, Depreciation and Tax has in terms of value and percentage increased by 1,419.92 Lakhs and 163.52%, from 868.37 Lakhs in the fiscal year ended March 31, 2023 to 2,288.29 Lakhs in the fiscal year ended

March 31, 2024. Profit before Interest, Depreciation and Tax was increased due to increase volume of our business operations and higher volume of sales. During the fiscal year March 31, 2024, our Company has manufactured 7,125 sq. ft. of LED display and 1,69,915 hearing aid as against 6,200 sq.ft of LED display and 1,14,298 hearing aid for the previous year ended March 31, 2023. The Company has also achieved better price relation during the fiscal year ended March 31, 2023 as compared to previous year. Further, the cost of purchase of raw materials for the year ended March 31, 2024 were decreased to 81.92% of the revenue as against 90.99% of the revenue of fiscal 2023. This has resulted in increased revenue and profitability.

Financial Costs

Finance Costs has in terms of value and percentage increased by 224.94 Lakhs and 198.13% from 113.53 Lakhs in the fiscal year ended March 31, 2023 to 338.47 Lakhs in the fiscal year ended March 31, 2024. Finance Costs was increased mainly due to higher interest outgo on increased borrowings.

Depreciation

Depreciation has in terms of value and percentage increased by 37.14 Lakhs and 63.90% from 58.12 Lakhs in the fiscal year ended March 31, 2023 to 95.26 Lakhs in the fiscal year ended March 31, 2024. Increase in depreciation is due to increase in assets and is general in nature.

Profit /(Loss) after Tax

Net Profit has in terms of value and percentage increased by 839.21 Lakhs and 180.09 % from 466.00 Lakhs in the fiscal year ended March 31, 2023 to 1305.21 Lakhs in the fiscal year ended March 31, 2024. Profit after Tax was increased due to increase volume of our business operations and higher volume of sales. During the fiscal year March 31, 2024, our Company has manufactured 7,125 sq. ft. of LED display and 1,69,915 hearing aid as against 6,200 sq.ft of LED display and 1,14,298 hearing aid for the previous year ended March 31, 2023. The Company has also achieved better price relation during the fiscal year ended March 31, 2023 as compared to previous year. Further, the cost of purchase of raw materials for the year ended March 31, 2024 were decreased to 81.92% of the revenue as against 90.99% of the revenue of fiscal 2023. This has resulted in increased revenue and profitability. This has resulted in increased revenue and higher profitability.

FISCAL YEAR ENDED MARCH 31, 2023 COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2022

Income

Total revenue has in terms of value and percentage increased by 1,664.14 Lakhs and 25.51%, from 6,524.53 Lakhs in the fiscal year ended March 31, 2022 to 8,188.68 Lakhs in the fiscal year ended March 31, 2023. During the fiscal year March 31, 2023, our Company has manufactured 6,200 sq. ft. of LED display and 1,14,298 hearing aids as against 4,900 sq.ft of LED display and 42,380 hearing aids for the previous year ended March 31, 2022. The Company has also achieved better price relation during the fiscal year ended March 31, 2022 as compared to previous year. Further, the cost of purchase of raw materials for the fiscal year ended March 31, 2023 were decreased to 90.99% of the revenue as against 96.40% of the revenue of fiscal 2022. This has resulted in increased revenue.

Expenditure

Total Expenditure has in terms of value and percentage increased by 1,851.42 Lakhs and 19.80%, from 7,498.86 Lakhs in the fiscal year ended March 31, 2022 to 9,350.29 Lakhs in the fiscal year ended March 31, 2023. Overall expenditure was increased mainly due to increase in manufacturing activity and higher production.

Cost of Material Consumed

Cost of materials consumed has in terms of value and percentage increased by 1,206.50 Lakhs, from 6,081.99 Lakhs in the fiscal year ended March 31, 2022 to 7,288.49 Lakhs in the fiscal year ended March 31, 2023. Cost of materials consumed was increased mainly due to increase in manufacturing activity and higher production.

Changes in Inventories of Finished Goods

Changes in Inventories of Finished Goods has decreased by (92.27) Lakhs, from (267.07) Lakhs in the fiscal year ended March 31, 2022 to (314.54) Lakhs in the fiscal year ended March 31, 2023. Changes in Inventories of Finished Goods was decreased on account of increase in production.

Employee Benefit Expenses

Employee Benefit Expenses has in terms of value and percentage increased by 114.74 Lakhs and 143.29% from 80.08 Lakhs in the fiscal year ended March 31, 2022 to 194.82 Lakhs in the fiscal year ended March 31, 2023. The overall employee cost was increased due to increase in staff strength and general increment in salary and incentives to employees.

Other Expenses

Other Expenses has in terms of value and percentage increased by 7.48 Lakhs and 3.82% from 195.76 Lakhs in the fiscal year ended March 31, 2022 to 203.24 Lakhs in the fiscal year ended March 31, 2023. The increase was mainly on account of increase in Audit Fees, Conveyance Expenses, Foreign Exchange Gain & Loss, Postage Courier & Office Expenses, Tender, Tools & Valuation charges, Discount and Contract Delay Charges, Insurance Expenses, Rent, Rate & Taxes and Tour & Travelling Expenses.

EBIDTA

Profit before Interest, Depreciation and Tax has in terms of value and percentage increased by 403.63 Lakhs and 86.85% , from 464.73 Lakhs in the fiscal year ended March 31, 2022 to 868.37 Lakhs in the fiscal year ended March 31, 2023. Profit before Interest, Depreciation and Tax was increased due to increase volume of our business operations and higher volume of sales. During the fiscal year March 31, 2023, our Company has manufactured 6,200 sq. ft. of LED display and 1,14,298 hearing aids as against 4,900 sq.ft of LED display and 42,380 hearing aids for the previous year ended March 31, 2022. The Company has also achieved better price relation during the fiscal year ended March 31, 2022 as compared to previous year. Further, the cost of purchase of raw materials for the fiscal year ended March 31, 2023 were decreased to 90.99% of the revenue as against 96.40% of the revenue of fiscal 2022. This has resulted in increased revenue and higher profitability.

Finance Costs

Finance Costs has in terms of value and percentage increased by 3.50 Lakhs and 3.18% from 110.03 Lakhs in the fiscal year ended March 31, 2022 to 113.53 Lakhs in the fiscal year ended March 31, 2023. Finance Costs was increased mainly due to higher interest outgo on increased borrowings.

Depreciation & Amortization Expenses

Depreciation has in terms of value and percentage increased by 1.97 Lakhs and 3.51% from 56.15 Lakhs in the fiscal year ended March 31, 2022 to 58.12 Lakhs in the fiscal year ended March 31, 2023. Increase in depreciation is due to increase in assets and is general in nature.

Net Profit after Tax

Net Profit has in terms of value and percentage increased by 253.69 Lakhs and 119.49% from 212.31 Lakhs in the fiscal year ended March 31, 2022 to 466.00 Lakhs in the fiscal year ended March 31, 2023. Profit after Tax was increased due to increase volume of our business operations and higher volume of sales. During the fiscal year March 31, 2023, our Company has manufactured 6,200 sq. ft. of LED display and 1,14,298 hearing aids as against 4,900 sq.ft of LED display and 42,380 hearing aids for the previous year ended March 31, 2022. The Company has also achieved better price relation during the fiscal year ended March 31, 2022 as compared to previous year. Further, the cost of purchase of raw materials for the fiscal year ended March 31, 2023 were decreased to 90.99% of the revenue as against 96.40% of the revenue of fiscal 2022. This has resulted in increased revenue and higher profitability.

FISCAL YEAR ENDED MARCH 31, 2022 COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2021

Income

Total revenue has in terms of value and percentage increased by 780.14 Lakhs and 13.58%, from 5,744.40 Lakhs in the fiscal year ended March 31, 2021 to 6,524.53 Lakhs in the fiscal year ended March 31, 2022. The revenue from operation was increased due to increase volume of our business operations and higher volume of sales post pandemic with revival of overall economy and removal of covid related restriction. During the fiscal year March 31, 2022, our Company has manufactured 4,900 sq. ft. of LED display and 42,380 hearing aids as against 3,700 sq.ft of LED display and 97,637 hearing aids for the previous year ended March 31, 2021. Increased production has resulted in increased revenue.

Expenditure

Total Expenditure has in terms of value and percentage increased by 689.81 Lakhs and 12.39%, from 5,567.13 Lakhs in the fiscal year ended March 31, 2021 to 6,256.94 Lakhs in the fiscal year ended March 31, 2022. Overall expenditure was increased mainly due to increase in volume of operation and higher production of LED display and hearing aids.

Cost of Material Consumed

Cost of materials consumed has in terms of value and percentage increased by 971.89 Lakhs and 19.02%, from 5,110.09 Lakhs in the fiscal year ended March 31, 2021 to 6,081.99 Lakhs in the fiscal year ended March 31, 2022. Cost of materials consumed was increased on account of increase in volume of operation and production. During the fiscal year March 31, 2022, our Company has manufactured 4,900 sq. ft. of LED display and 42,380 hearing aids as against 3,700 sq.ft of LED display and 97,637 hearing aids for the previous year ended March 31, 2021.

Changes in Inventories of Finished Goods

Changes in Inventories of Finished Goods has in terms of value and percentage increased by 258.73 Lakhs, from (8.33) Lakhs in the fiscal year ended March 31, 2021 to (267.07) Lakhs in the fiscal year ended March 31, 2022. Changes in Inventories of Finished Goods increased on account of increase inventory of finish goods and stock-in-trade to support increased volume of operation and sales.

Employee Benefit Expenses

Employee Benefit Expenses has in terms of value and percentage decreased by (78.06) Lakhs and 49.36%, from 158.14 Lakhs in the fiscal year ended March 31, 2021 to 80.08 Lakhs in the fiscal year ended March 31, 2022. Overall employee cost was decreased due to lower staff strength.

Other Expenses

Other Expenses has in terms of value and percentage was decreased by (10.38) Lakhs and (5.03)% from 206.14 Lakhs in the fiscal year ended March 31, 2021 to 195.76 Lakhs in the fiscal year ended March 31, 2022. The decrease was mainly on account of lower software & subscription charges.

EBIDTA

Profit before Interest, Depreciation and Tax has in terms of value and percentage increased by 161.90 Lakhs and 53.46% from 302.84 Lakhs in the fiscal year ended March 31, 2021 to 464.73 Lakhs in the fiscal year ended March 31, 2022. Profit before Interest, Depreciation and Tax was increased due to increase volume of our business operations and higher volume of sales post pandemic with revival of overall economy and removal of covid related restriction. During the fiscal year March 31, 2022, our Company has manufactured 4,900 sq. ft. of LED display and 42,380 hearing aids as against 3,700 sq.ft of LED display and 97,637 hearing aids for the previous year ended March 31, 2021. Increased production has resulted in increased revenue and profitability.

Finance Costs

Finance Costs has in terms of value and percentage increased by 59.87 Lakhs and 119.36% from 50.16 Lakhs in the fiscal year ended March 31, 2021 to 110.03 Lakhs in the fiscal year ended March 31, 2022. Finance Costs was increased mainly due to higher interest outgo on increased borrowings.

Depreciation & Amortization Expenses

Depreciation has in terms of value and percentage increased by 5.22 Lakhs and 10.25% from 50.93 Lakhs in the fiscal year ended March 31, 2021 to 56.15 Lakhs in the fiscal year ended March 31, 2022. Increase in depreciation is due to increase in assets and is general in nature.

Net Profit after Tax

Net Profit has in terms of value and percentage increased by 70.71 Lakhs and 49.93% from 141.61 Lakhs in the fiscal year ended March 31, 2021 to 212.31 Lakhs in the fiscal year ended March 31, 2022. Profit after Tax was increased due to increase volume of our business operations and higher volume of sales post pandemic with revival of overall economy and removal of covid related restriction. During the fiscal year March 31, 2022, our Company has manufactured 4,900 sq. ft. of LED display and 42,380 hearing aids as against 3,700 sq.ft of LED display and 97,637 hearing aids for the previous year ended March 31, 2021. Increased production has resulted in increased revenue and profitability.

Cash Flows

Particulars	For the year ended March 31,
	2024	2023	2022
Net Cash from Operating Activities	1,220.45	(1,068.19)	256.66
Net Cash from Investing Activities	(1,269.66)	(166.34)	2.50
Net Cash used in Financing Activities	424.47	805.89	(182.43)

Cash Flows from Operating Activities

Net cash from operating activities for the year ended March 31, 2023 was at 1,220.45 lacs as compared to the EBIDTA at 2,288.29 lacs. Net cash from operating activities for fiscal 2023 was at (1,068.19) lacs as compared to the EBIDTA at 868.37 lacs, while for fiscal 2022, net cash from operating activities was at 256.66 lacs as compared to the EBIDTA at 464.73 lacs. For fiscal 2021, the net cash from operating activities was (333.25) lacs compared to EBIDTA of

302.84 lacs.

Cash Flows from Investment Activities

Net cash from investing activities for the fiscal 2024 was (1,269.66) lacs and for the fiscal 2023 was (166.34) lacs. This negative cash outflow is attributed to increase in land and building for the use of operation. Net cash from investing activities was at (166.34) lacs due to increase in assets. Further, positive Net cash from investing activities was 2.50 Lacs in the fiscal 2022 attributed to return on investments.

Cash Flows from Financing Activities

Net cash from financing activities for the year ended March 31, 2024 was at 424.47 lacs. The positive cash flow was on account of raising of additional fund through borrowings. Net cash from financing activities for fiscal 2023 was at

805.89 lacs. The positive cash flow was on account of raising of additional fund through borrowings. In fiscal 2022 was (182.43) lacs due to repayment of loans and borrowings and higher interest outgo. For fiscal 2021, the net cash from financing activities was 502.40 lacs on account of loans and borrowings.

OTHER MATTERS

1. Unusual or infrequent events or transactions

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

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

Other than as described in the Section titled "Financial Information" and chapter titled "Managements Discussion and Analysis of Financial Conditions and Results of Operations", beginning on Page 193 and 234 respectively of this Red Herring Prospectus, to our knowledge there are no significant economic changes that materially affected or are likely to affect income from continuing Operations.

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

Other than as described in the chapter titled "Risk Factors" and "Managements Discussion and Analysis of Financial Conditions and Result of Operations", beginning on Page 26 and 234 respectively of this Red Herring Prospectus, best to our knowledge there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our company from continuing operations.

4. Future relationship between Costs and Income

Other than as described in the chapter titled "Risk Factors" beginning on Page 26 of this Red Herring Prospectus, best to our knowledge there are no factors, which will affect the future relationship between costs and income or which are expected to have a material adverse impact on our operations and finances.

5. Competition Conditions

Our Industry is fragmented consisting of large established players and small niche players. We compete with organized as well as unorganized sector on the basis of availability of product, price and product range. Further, there are no entry barriers in this industry and any expansion in capacity of existing manufacturers would further intensify competition. Industry is very competitive and we expect competition to continue and likely to increase in the future.

CAPITALISATION STATEMENT

The following table sets forth our capitalisation derived from our Restated Financial Statements for period ended March 31, 2024, and as adjusted for the Issue. This table should be read in conjunction with "Managements Discussion and

Analysis of Financial Condition and Results of Operations", "Financial Statements" and "Risk Factors" on pages 234, 193 and 26, respectively.

Particulars	Pre Issue	Post Issue
	31 March 2024
Debt
Short Term Debt	1,751.80
Long Term Debt	793.43
Total Debt	2,545.23
Shareholders Fund (Equity)
		[ ]
Share Capital	1,153.82
Reserves & Surplus	1,380.39
Less: Miscellaneous Expenses not w/off	-
Total Shareholders Fund (Equity)	2,534.21
Long Term Debt/Equity	0.31
Total Debt/Equity	1.00

Notes:

1. As per Restated Financial Statements of the Company.

2. The corresponding post capitalisation data for each of the amounts given in the above table is not determinable at this stage pending the completion of Book building process and hence the same have not been provided in the above statement.