Paramount Speciality Forgings Ltd Management Discussions

The following discussion is intended to convey managements perspective on our financial condition and results of operations the Financial Year ended on March 31, 2024, March 31, 2023, and March 31, 2022 including the related notes and reports, included in this Red Herring Prospectus. One should read the following discussion and analysis of our financial condition and results of operations in conjunction with our section titled "Financial Statements" and the section titled "Financial Information" on 198 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 30 of this Red Herring Prospectus. Actual results could differ materially from those contained in any forward- looking statements and for further details regarding forward-looking statements, kindly refer to the section titled "Forward- Looking Statements" on page 19 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 Paramount

Speciality Forgings Limited, our Company. Unless otherwise indicated, financial information included herein are based on our Restated Financial Statements for the March 31, 2024 included in this Red Herring Prospectus beginning on page 198 of this Red Herring Prospectus.

Business Overview

We are manufacturers of steel forgings in India offering a diverse range of forged products. We have developed our business and scale of operations since its founding in 1996 and have invested in a variety of machinery to boost and diversify our manufacturing capabilities. We can now manufacture and provide forged components ranging in weight from 1Kg to 4 metric tons in rough or finish-machined condition. Our products are manufactured in accordance with National and International standards and is used in a wide range of industrial applications catering to the extensive requirements of Petrochemicals, Chemicals, Fertilizers, Oil and Gas, Nuclear Power, and other heavy engineering sectors.

We benefit from our experience in catering to a wide range of customers due to our legacy of over three decades in the manufacturing businesses and have built long-standing relationships with customers across end-users in the Petrochemicals, Chemicals and Fertilizer, Oil and Gas, Nuclear, Power and other Heavy Engineering Industries.

We as an organization have established, implemented, and maintained an Integrated Management System (IMS), including the processes needed and their interactions, to achieve the intended outcome, including enhancing environmental and OH and S performance. The organization has considered the knowledge it gained during determination of internal and external issues, workers and other interested parties requirements while establishing and maintaining the Integrated Management System. The organization ensures continual improvement in IMS.

We own and operate two manufacturing facilities, with one in Kamothe and one in Khalapur, Maharashtra. Our Closed Die Forging Plant shop is equipped with two pneumatic air hammers 2T and 5T and a Drop Forge Hammer of capacity 1.5 MT that are capable of producing single piece forgings weighing up to 120 Kgs.

On the other hand, the Ring Rolling facility at the Khalapur Plant is equipped with an Automated 3,500T Hydraulic Blanking Press and a Radial Axial Ring Rolling Mill producing a variety of forgings and is capable of forging Seamless rolled rings up to a diameter of 3,500 mm, a height of up to 750mm and a weight of up to 5MT. For more information on the capacity of our manufacturing facilities, see "Our Business- Installed Capacity, Average Annual Available Capacity, Actual Production and Capacity Utilization" on page 142 of this Red Herring Prospectus.

Plant	Production Capacity
Kamothe Plant (Closed Die Forging)	5,000 MTPA
Kahalpur Plant ( Ring Rolling and Open Forging)	7,000 MTPA
Total Capacity	12,000 MTPA

As time has progressed, we have modernized our existing Closed Die manufacturing plant and kept upgrading our Ring Rolling Facility which further increases our Production capacities and capabilities. This now includes a wide range of Products Including Flanges, Non-standard Forgings, Valve Components, Gear Rings and Blanks, Bearing Races, Slew Rings, Turbine Rings, and other Customized Forgings in all grades of Carbon, Alloy, Stainless, Duplex, Super Duplex and Other Nickel Alloy based materials. The manufacturing plants are geared to manufacture with productivity and precision followed by stringent quality control measures, managed by a group of professionals having experience in various fields of Management and Engineering which is backed up by highly motivated work force. The plant is certified under ISO 9001-2008, ISO 14001-2004 and BS OHSAS 18001-2007 and accredited by reputed Oil and Gas companies, Statutory Bodies and Inspections Agencies.

We manufacture a range of forged products which include Tube Sheet Blanks, Forged Rings, Spacers, Girth Flanges, Tyre Rings, Self-reinforced nozzle, Long weld neck flanges, Seat, Valves body, Bonnet etc.

Significant Developments Subsequent To The Last Financial Year

In the opinion of the Board of Directors of our Company, since March 31, 2024, there have not arisen any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months.

Key Performance Indicators

The KPIs disclosed below have been used historically by our Company to understand and analyse business performance, which as a result, helps us in analysing the growth of our Company. The KPIs disclosed below have been approved and confirmed by a resolution of our Audit Committee dated Tuesday, September 03, 2024. Further, the members of our Audit Committee have confirmed that there are no KPIs pertaining to our Company that have been disclosed to any investors at any point of time during the two periods prior to the date of filing of this Red Herring Prospectus.

We have described and defined the KPIs, as applicable, in ‘Definitions and Abbreviations on page 11 of this Red Herring Prospectus.

Our Company confirms that it shall continue to disclose all the KPIs included in this section on a periodic basis, at least once in a year (or any lesser period as determined by the Board of our Company), for a duration of one year after the date of listing of the Equity Shares on the Stock Exchange or for such other duration as may be required under the SEBI (ICDR) Regulations . Further, the ongoing KPIs will continue to be certified by a member of an expert body as required under the SEBI (ICDR) Regulations.

The list of our KPIs along with brief explanation of the relevance of the KPI for our business operations are set forth below:

	Restated Financial Information for the
	Financial Year Ended				March 31
Key Financial Performance	2024 ( in Lakhs)		2023 ( in Lakhs)		2022 ( in Lakhs)
Revenue from Operations (1)	11,275.65		11,035.77		8,758.25
Gross Profit ( Lakhs) (2)	4,372.63		3,459.29		2,661.63
Gross Profit Margin (%) (3)	38.78%		31.35%		30.39%
EBITDA ( Lakhs) (4)	1,411.52		762.81		817.89
EBITDA Margin % (5)	12.52%		6.91%		9.34%
PAT ( Lakhs) (6)	725.36		275.84		313.44
PAT Margin % (7)	6.43%		2.50%		3.58%
Net cash from operating activities ( Lakhs) (8)	(251.72)		(40.82)		401.19
		Restated Financial Information for the
		Financial Year Ended				March 31
Key Financial Performance
		2024		2023		2022
		( in Lakhs)		( in Lakhs)		( in Lakhs)
Net Worth ( Lakhs) (9)		2,291.49		1,566.14		1,970.49
Total Debt ( Lakhs) (10)		2,492.82		2,027.65		1,176.93
ROE		0.32		0.16		0.17
ROCE		0.40		0.30		0.24
EPS		4.87		2,758.40		3,134.37

Explanation for the KPIs:

	KPI		Remark/Definition/Assumptions
Revenue		from	Revenue from Operations means the revenue from operations as appearing in the
Operations			Restated Financial Information
			Gross Profit is calculated as revenue from operations less cost of materials consumed,
Gross Profit
			changes in inventories of finished goods and work-in-progress.
			Gross Margin refers to the percentage margin derived by dividing Gross Profit by
Gross Profit Margin
			Revenue from Operations.
			EBITDA is calculated as restated profit / (loss) for the period / year (excluding Other
EBITDA
			Income), plus finance costs, total taxes, and depreciation and amortization expense.
EBITDA Margin			EBITDA Margin (%) is calculated as EBITDA divided by Revenue from Operations.
			PAT is restated Profit/ (Loss) or the period/ year as appearing in the Restated Financial
Profit After Tax
			Information.
			PAT Margin refers to the percentage margin derived by dividing Profit after Tax by
PAT Margin
			Total Income.
Net	cash	from	Net cash from operating activities is Profit before Tax after giving adjustments of non-
operating activities			operating incomes and expenses and Change in Operating Assets and Liabilities.
Net Worth			Net Worth is sum of Equity Share capital and other Equity.
Total Debt			Total Debt is sum of short term and Long-term Borrowings.
			Return on equity provides how efficiently our Company generates profits from
Return on Equity
			shareholders funds
Return	on Capital		Return on capital employed provides how efficiently our Company generates earnings
Employed			from the capital employed in the business
EPS			Earnings pe share as defined under Accounting Standard - 20

Description on the historic use of the KPIs by us to analyse, track or monitor our operational and/or financial performance in evaluating our business, we consider and use certain KPIs, as stated above, as a supplemental measure to review and assess our financial and operating performance.

The presentation of these KPIs is not intended to be considered in isolation or as a substitute for the Restated Financial Information. We use these KPIs to evaluate our financial and operating performance. These KPIs have limitations as analytical tools. Further, these KPIs may differ from the similar information used by other companies and hence their comparability may be limited. Therefore, these metrics should not be considered in isolation or construed as an alternative to GAAP measures of performance or as an indicator of our operating performance, liquidity or results of operation. Although these KPIs are not a measure of performance calculated in accordance with applicable accounting standards, our management believes that it provides an additional tool for investors to use in evaluating our ongoing operating results and trends and in comparing our financial results with other companies in our industry because it provides consistency and comparability with past financial performance, when taken collectively with financial measures prepared in accordance with GAAP. Investors are encouraged to review GAAP financial measures and to not rely on any single financial or operational metric to evaluate our business.

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 30 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

Revenue generated from end use industry

We are manufacturers of steel forgings in India offering a diverse range of forged products. Our products are used in a wide range of industrial applications catering to the extensive requirements of Petrochemicals, Chemicals, Fertilizers, Oil and Gas, Nuclear Power, and other heavy engineering sectors. We benefit from our experience in catering to a wide range of customers due to our legacy of over three decades in the manufacturing businesses and have built long-standing relationships with customers across end-users in the Petrochemicals, Chemicals and Fertilizer, Oil and Gas, Nuclear, Power and other Heavy Engineering Industries.

The table below shows our revenue contribution to the various end-use industries to which we cater:

Sectors			For the Financial Year ended March 31
		2024			2023		2022
	Amount		Percentage of	Amount	Percentage of	Amount	Percentage of
	( in Lakhs)		Total Revenue	( in Lakhs)	Total Revenue	( in Lakhs)	Total Revenue
Petrochemicals, Chemicals and Fertilizers	3,347.68		29.79%	4,201.33	39.99%	3,390.05	38.52%
Oil and Gas	1,879.65		16.73%	1,386.63	13.20%	1,325.59	15.06%
Nuclear and Power	261.97		2.33%	211.27	2.01%	79.86	0.91%
Heavy Engineering and Other Sectors	1,865.41		16.60%	1,379.6	13.13%	1,422.16	16.16%
Overseas Customers	2,481.76		22.09%	1,994.12	18.98%	1,494.09	16.98%
Others	1,309.02		11.65%	1,332.92	12.69%	1,088.23	12.37%

Set out below are details of the total number of customers by end-use industry.

Sr.
	End-Use Industry	Fiscals 2024	Fiscals 2023	Fiscals 2022
No
1.	Petrochemicals, Chemicals and Fertilizers	105	137	132
2.	Oil and Gas	12	14	13
3.	Nuclear and Power	04	10	11
5.	Heavy Engineering and Other sectors	75	65	85
6.	Overseas Customers	10	10	7
7.	Others	16	15	15

Long-standing client relationships

We provide services with expertise to our clients and this helps us in customer retention and repeat business. We provide services on a customer-goal based approach and our solutions are targeted towards consistently delivering higher efficiencies, higher accuracy meeting and achieving customers performance indicators. We believe this approach has helped our customers meet their objectives, which has led to customer retention and development of customer relationships.

We have a history of customer retention. In Financial Year ending March 31, 2024, we derived more than 30% of our restated revenues from operations from out Top 5 key customers. In Financial Year ending March 31, 2022, we derived more than 35% of our revenues from operations from repeat customers. These long-standing relationships have also contributed to the growth of our revenues from our existing customers and the expansion of our customer base.

Our revenue from operation from our top 20 Customers, top 10 Customers and top 5 Customers as a percentage of our revenue from operations in the preceding 3 (Three) Financial Years is set our below:

	Restated Financial Information for the Financial Year Ended March 31
Particular		2024		2023	2022
s of				Percentage		Percentage
	Amount	Percentage of	Amount
Customer				of Revenue	Amount	of Revenue
	( in	Revenue from	( in
s				from	( in Lakhs)	from
	Lakhs)	Operations	Lakhs)
				Operations		Operations
Top 5	3,529.95	31.43%	2,961.08	28.18%	2,284.56	26.00%
Top 10	5,163.68	45.95%	4,535.87	43.17%	3,635.62	41.39%
Top 20	7,185.72	63.95%	6,224.25	59.25%	5,196.04	59.01%

Raw Material Costs, Operating Costs and Operational Efficiencies

Our business, financial condition, results of operations and prospects are significantly impacted by the prices of raw materials purchased by us. Our cost of raw materials consumed, for the Financial Year ended on March 31, 2024, March 31, 2023, and March 31, 2022 was 7,405.17 Lacs, 8,367.18 Lacs and 6,093.05 Lacs, respectively, which represented 65.17%, 75.82% and 69.57%, of our revenue from operations for the respective Fiscals. Our financial condition and results of operations are significantly impacted by the availability and costs of raw materials. Raw material pricing can be volatile due to a number of factors beyond our control, including global demand and supply, general economic and political conditions, transportation and labour costs, labour unrest, natural disasters, competition, import duties, fuel prices and availability, power tariffs and currency exchange rates. This volatility in commodity prices can significantly affect our raw material costs. Further, our contracts with our customers generally provide for pass through of any variation in the raw material costs. However, our cash flows may still be adversely affected because of any gap in time between the date of procurement of those primary raw materials and date on which we can reset the product prices for our customers, to account for the increase in the prices of such raw materials.

Our ability to manage our operating costs and operations efficiencies is critical to maintaining our competitiveness and profitability. Our profitability is partially dependent on our ability to increase our productivity and reduce our operating expenses.

Availability of funds for capital expenditure

We continuously invest in machinery and equipment to expand our forging and machining capacity to seize opportunities for growth in the market. The actual amount and timing of our future capital expenditure may deviate from initial estimates due to various factors. These factors include unforeseen delays or cost overruns, unanticipated expenses, regulatory changes, economic conditions, engineering design changes, technological advancements, and emerging market developments.

Fluctuation in Foreign Exchange

We are exposed to foreign exchange-related risks as a portion of our revenue from operations are in foreign currency, including the Euro, and US Dollar each of which significantly contribute to our revenues in currencies other than Indian Rupees. The table below provides our revenue from operations generated in currency other than Indian Rupees for the Financial Year ended on March 31, 2024, March 31, 2023, and March 31, 2022:

			For the Financial Year ended March 31
Geographical
		2024		2023		2022
Presence
		Percentage of
Revenue of	Amount		Amount	Percentage of Revenue	Amount	Percentage of Revenue
		Revenue from
Operations	( in Lakhs)		( in Lakhs)	from Operations	( in Lakhs)	from Operations
		Operations
Europe	631.09	24.52	1,172.38	45.42%	353.12	18.64%
Canada	1,909.12	74.19	1,385.61	53.68%	1,054.99	55.70%
Middle East	33.20	1.29	23.46	0.90%	485.92	25.66%
Total	2,573.41	100.00%	2,581.45	100.00%	1,894.03	100.00%

The table below provides our foreign exchange gain/loss net and as a percentage of revenue from operations as stated in the Restated Financial Information:

				For the Financial Year ended March 31
Geographical Presence Revenue		2024		2023			2022
of Operations	Amount		Percentage of	Amount	Percentage of	Amount	Percentage of
	( in Lakhs)		Other Income	( in Lakhs)	Other Income	( in Lakhs)	Other Income
Foreign exchange gain/ loss net	14.46		16.44%	40.54	21.53%	27.10	5.59%

The exchange rate between the Indian Rupee and foreign currencies, primarily the USD, has fluctuated in the past and our results of operations have been impacted by such fluctuations and may be impacted by such fluctuations in the future. For example, during times of strengthening of the Indian Rupee, we expect that our revenue from offerings from markets outside India will generally be negatively impacted as foreign currency received will be translated into fewer Indian Rupees. However, the converse positive effect of depreciation in the Indian Rupee may not be sustained or may not show an appreciable impact in our results of operations in any given financial period due to other variables impacting our business and results of operations during the same period. Accordingly, any appreciation or depreciation of the Indian Rupee against these currencies can impact our results of operations.

Our manufacturing facilities

As of the date of this Red Herring Prospectus, we operate two manufacturing facilities located at Khalapur and one located at Kamothe. In the the Financial Year ended on March 31, 2024, March 31, 2023, and March 31, 2022, our overall forging capacity utilization was 12,000 MT in each year and the the Financial Year ended on March 31, 2024, March 31, 2023, and March 31, 2022 respectively and our overall machining capacity utilization was 41.24%, 39.00%, and 31.30% respectively. For further information, see "Our Business Installed Capacity, Average Annual Available Capacity, Actual Production and Capacity Utilisation" on page 129 of this Red Herring Prospectus. While our overall machining capacity utilization has increased in the last three Fiscals, underutilization of our existing manufacturing facilities for machining may arise due to various reasons such as changes in demand for our products and supply chain disruptions, which could have a material adverse effect on our business, financial condition, results of operations, and cash flows.

Other Factors

Changes, if any, in the regulations / regulatory framework / economic policies in India and / or in foreign countries, which affect national and international finance;

Companys ability to adopt the changing technology;

Companys results of operations and financial performance;

Performance of Companys competitors;

Significant developments in Indias economic and fiscal policies;

Volatility in the Indian and global capital market;

The occurrence of natural disasters or calamities;

Results Of Operation

The following discussion on results of operations should be read in conjunction with the Restated Financial Statements for the Financial Year ended on March 31, 2024, March 31, 2023, and March 31, 2022:

Overview Of Revenue and Expenditure

						For the Financial Year ended March 31
Particulars
					2024		2023			2022
					Amount	Percentage of	Amount	Percentage of	Amount	Percentage of
					( in Lakhs)	total income	( in Lakhs)	total income	( in Lakhs)	total income
Revenue from Operations					11,275.65	99.23%	11,035.77	98.32%	8,758.25	94.75%
Other income					87.97	0.77%	188.33	1.68%	484.91	5.25%
Total Revenue (A)					11,363.62	100.00%	11,224.1	100.00%	9,243.16	100.00%
Expenses:
Cost of material Consumed					7,405.17	65.17%	8,367.18	74.55%	6,093.05	65.92%
Changes in Inventories of Stock-in-Trade					(502.15)	(4.42%)	(790.70)	(7.04%)	3.57	0.04%
Employee benefits expense					727.82	6.40%	629.09	5.60%	529.77	5.73%
Other expenses					2,321.26	20.43%	2,255.72	20.10%	1,798.88	19.46%
Total Expenses (B)					9,952.10	87.58%	10,461.29	93.20%	8,425.27	91.15%
Earnings Before	Interest,	Taxes,	Depreciation	and
					1,411.52	12.42%	762.81	6.80%	817.89	8.85%
Amortization(C=A-B)
Finance costs (D)					203.25	1.79%	143.25	1.28%	130.35	1.41%
Depreciation and amortization expenses (E)					202.34	1.78%	261.47	2.33%	304.28	3.29%
Profit before Exceptional Items (F=C-D-E)					1,005.93	8.85%	358.09	3.19%	383.26	4.15%
Provision for CSR (G)					-	-	0	0.00%		0.00%
Profit Before Tax (H=F-G)					1,005.90	8.85%	358.09	3.19%	383.26	4.15%
Tax Expenses
- Current Tax					308.95	2.72%	91.7	0.82%	101.7	1.10%
Prior year tax adjustments							9.5		-
- Deferred Tax					(28.38)	(0.25%)	(18.95)	(0.17%)	(31.88)	-0.34%
Tax Expense For The Year (I)					280.57	2.47%	82.25	0.73%	69.82	0.76%
Profit after tax (J=H-I)					725.36	6.38%	275.84	2.46%	313.44	3.39%

Our Significant Accounting Policies

For Significant accounting policies please refer Significant Accounting Policies, under Section titled "Financial Statements" beginning on page 198 of the Red Herring Prospectus.

Note 1: Statement of Significant Accounting Policies and Other Explanatory Notes

1. Company Overview

Paramount Speciality forgings Limited (formerly known as Paramount Speciality Forgings LLP) ("the company") is incorporated in India on 5^th May, 2023 having its registered office at 1 and 3 Guru Himmat, Ground Floor,140 Dr. Mascarenhas Road, Mazgaon, Mumbai 400010. The company carry on business of contract trading in widest range of Wall and Floor Tiles along with its services Quality in innovation is the key stone of every activity, the value the must underline its market identity and which is systematically delivered to its own trade partners.

2. Basis of Preparation

a. The financial statement are prepared in accordance with Generally Accepted Accounting Principles (Indian

GAAP) under the historical cost convention on accrual basis and on principals are going concern. The accounting policies are consistently applied by the company.

b. The financial statement are prepared to comply in all material respect with the Accounting standards specified under section 133 of the act, read with rule 7 of the companies (Account) Rules,2014 and provisions of Companies Act, 2013.

c. The preparation of the financial statement requires estimates and assumptions to be made that affect the reported amount of asset and liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Differences between the actual result and estimates are recognized in the period in which the result are known / materialize.

The restated financial information of the Paramount Speciality forgings Limited (formerly known as Paramount Speciality Forgings LLP) comprise of restated financial statement of assets and liabilities as the Financial Year ended on March 31, 2024, March 31, 2023, and March 31, 2022, the restated statement of profit and loss account, and restated cash flows for the period ended the Financial Year ended on March 31, 2024, March 31, 2023, and March 31, 2022 and summary of significant accounting policies and explanatory notes and notes to the restated financial information. These Restated financial information have been prepared by the management of the company for the proposed of inclusion in the Red Herring Prospectus (DRHP) prepared by the Company in connection with its proposed Initial Public Offer ("IPO") in terms of the requirements of

a. Section 26 of Part I of Chapter III of the companies Act, 2013 ("the act");

b. The securities and Exchange Board India (issue of Capital and Disclose Requirements) Regulations, 2018, as amended ("ICDR Regulations")

c. The Guidance Note on Reports in company Prospectuses (Revised 2019) issued by the Institute of Chartered

Accountants of India (ICAI), as amended (the "Guidance Note").

The Restated Standalone Financial Information have been complied by the management form:

The Audited Restated financial statement of the Paramount Speciality forgings Limited (formerly known as Paramount Speciality Forgings LLP) as at the Financial Year ended on March 31, 2024, March 31, 2023, and March 31, 2022, prepared in accordance with the Accounting standard prescribed under section 133 of the companies act, 2013, read with companies (Indian Accounting Standard) Rules, 2015 (as amended) and other accounting principles generally accepted in India.

The Restated Standalone Financial Information have been prepared so as to contain information / Disclosure and incorporating adjustment set out below in accordance with the ICDR Regulations.

a. Adjustment for audit qualification requiring corrective adjustment in the financial statement, if any;

b. Adjustment for reclassification of the corresponding items of incomes, expenses, assets and liabilities, in order to bring them in line with the grouping / disclosures as per the audited financial statement of the Paramount Speciality forgings Limited (formerly known as Paramount Specialty Forgings LLP) as at and for the Financial Year ended on March 31, 2024, March 31, 2023, and March 31, 2022, and the requirements of the SEBI Regulations, if any;

c. The resultant impact of tax due to the aforesaid adjustment, if any.

3. Use of estimates

The preparation of financial statement in conformity with GAAP requires judgements, estimates and assumptions to be made that affect the report amount of assets and liabilities, disclosure of contingent liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimated are recognised in the period in which the result are known / materialized.

4. Revenue Recognition

(a) Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the Revenue can be reliably measured.

(b) Sales are recognized on accrual basis, and only after transfer of goods or services to the customer.

(c) Dividend on Investments are recognized on receipt basis.

(d) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

5. Property, Plant and Equipments

(i) Tangible Assets

Property, Plant and Equipment are stated at actual cost less accumulated depreciation. Cost comprises the purchase price and any Attributable cost of bringing the asset to its working condition for its intended use.

(ii) Intangible Assets

Intangible assets comprise of cost relating to acquisition and development of computer software which are capitalised in accordance with the AS-26 ‘Intangible Assets as notified under section 133 of the companies

Act,2013 read with Rule 7 of the companies (Accounts) Rule, 2014.

6. Depreciation and Amortisation

Depreciation on all property, plant and equipment is provided on straight line value method as per the useful life prescribed under schedule II of Companies Act 2013.

Notes to Restated financial information Significant Accounting Policies

7. Impairment of Assets

The Carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of the assets net selling price and value in use, which is determined by the present value of the estimated future cash flows.

8. Inventories

Inventories consisting of Raw Materials, Finished Goods are valued at lower of cost and net realizable value.

9. Employee Benefits

(i) Defined Contribution Plan:

Contributions as per the Employees Provident Funds and Miscellaneous Provision Act, 1952 towards provident fund and pension fund are charged to the statement of profit and loss for the year when the contributions to the respective funds are due. There is no other obligation other than the contribution payable to the respective funds.

(ii) Defined Benefit Plan:

Retirement benefits in the form of Gratuity are considered as defined benefits obligations and are provided on the basis of the actuarial valuation, using the projected unit credit method as at the date of the Balance sheet.

10. Lease

Lease where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of Profit and Loss on a straight-line basis over the lease term over the non-cancellable period.

11. Borrowing Cost

Borrowing costs that are directly attributable to the acquisition, construction or production of the qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to the statement of profit and loss.

12. Taxes on income

(i) Current Taxes

Current income tax is measured at the amount expected to be paid to taxation authorities in accordance with the Income Tax Act, 1961 enacted in India by using tax laws that are enacted at the reporting date.

(ii) Deferred Taxes

Deferred Tax arising on account of "timing differences" and which are capable of reversal of reversal in one or more subsequent periods is recognizes, using the tax laws that are enacted or substantively enacted. Deferred tax asset is recognized only to the extent there is reasonable certainty with respect of the same in future years as a matter of prudence.

13. Earning per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equities share outstanding during the period.

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

14. Prior Period Items

Prior Period and Extraordinary items and changes in Accounting Policies having material impact on the financials affairs of the company are disclosed in financial statements.

Notes to Restated Financial Information Significant Accounting Policies

15. Provisions, Contingent Liabilities and Contingent Assets

Provisions/Contingencies

(a) Provisions involving substantial degree of estimation in measurements is recognized when there is a present obligation as result of past events and it is probable that there will be an outflow of resources. (b) Contingent Liabilities are shown by way of notes to be account in respect of obligation where, based on the evidence available, their existence at the balance sheet date is considered not probable. (c) A Contingent Assets is not recognized in the Accounts.

16. Segment Reporting

Business Segment:

Based on the guiding principles given in accounting standard 17 (AS- 17) on Segment Reporting issued by ICAI, the company has only one reportable business segment, which is business of manufacturing of steel forgings, with range of forged products since 1996 for industrial application, petrol chemical, fertilizer, oil and gas, nuclear, power and other heavy engineering sector the business of trading in all kinds of building materials including cements of all varieties, hence no separate disclosure pertaining to attributable revenues, profits, Assets, Liabilities, Capital employed are given. Accordingly, the figures appearing in these financial statement relate to the companys single Business Segment.

Overview of Revenue and Expenditure

Our revenue and expenses are reported in the following manner:

Revenues

Revenue of operations: - Our Revenue from operations comprises of revenue generated from Sale of manufactured products, scrap sales and export incentives.

Other Income: - Our other income comprises of interest income, proceeds on surrender of Key man Insurance Policy, Provision for Doubtful debts Written Back, Net gain on sale of Property Plant and Equipment, Advance from Customers written back, Gain on foreign exchange transactions and translation (net) and other income.

Summary of our revenues is as follows:

	For the Financial year ended on March 31,
Particulars
	2024	2023	2022
	( In Lakhs)	( In Lakhs)	( In Lakhs)
Revenue from operations	11,275.65	11,035.77	8,758.25
As a % of total Income	99.23%	98.32%	94.75%
Other Income	87.97	188.33	484.91
As a % of Total Income	0.77%	1.68%	5.25%
Total Revenue	11,363.62	11,224.10	9,243.16

Expenditure

Our total expenditure primarily consists of Cost of materials consumed, employee benefit expenses, finance cost, depreciation and amortization expenses and other expenses.

Cost of Materials consumed: - Cost of Materials consumed comprises opening stock of raw materials, purchases of raw materials and closing stock of raw materials consumed.

Employment Benefit Expenses: - Employee benefit expenses comprise of salaries and wages, staff welfare expenses and contribution to Provident Fund and other fund.

Finance Costs: - Finance costs include interest expenses and other borrowing costs.

Depreciation and amortization expenses: - Tangible assets are depreciated over periods corresponding to their estimated useful lives.

Other Expenses: - Other expenses include Consumption of stores and spare parts, Sub- contracting expenses, Power and fuel, Other manufacturing expenses, Rent, Repairs and maintenance, Inspection Charges, Insurance, Telephone Expenses, Rates and taxes, Travelling expenses, Auditors remuneration, Legal and professional charges, Commission, Interest on Delayed Payment of Income Tax, Late Delivery Charges, Bad Debts Written Off, Sundry Balances Written off, Provision for doubtful debts, Freight Outward, Net Loss on Sale of Fixed Assets and Miscellaneous Expenses.

	For the Financial year ended on March 31,
Particulars	2024	2023	2022
	( In Lakhs)	( In Lakhs)	( In Lakhs)
Expenditure
Cost of Material Consumed	7405.17	8,367.18	6,093.05
As a % of total Income	65.11%	74.55%	65.92%
Changes in inventories	(502.15)	(790.70)	3.57
As a % of Total Income	(4.42%)	(7.04%)	0.04%
Employee Benefit Expenses	727.82	629.09	529.77
As a % of Total Income	6.40%	5.60%	5.73%
Finance Costs	203.25	143.25	130.35
As a % of Total Income	1.79%	1.28%	1.41%
Depreciation and amortization Expense	202.34	261.47	304.28
As a % of Total Income	1.78%	2.33%	3.29%
Other Expenses	2,321.26	2,255.72	1,798.88
As a % of Total Income	20.43%	20.10%	19.46%
Total Expenditure	10,357.69	10,866.01	8,859.90
As a % of Total Income	91.15%	96.81%	95.85%

Financial Year Ended March 31, 2024 Compared with Financial Year Ended March 31, 2023

Income

Our Total Income increased by 2.17% and 239.88 from 11,224.10 in Fiscal Year 2023 to 11,363.62 in Fiscal Year 2024 Primarily due to an increase in our Revenue from Operations and other income as discussed below:

Revenue from Operation

There has been significant growth in revenue from operation in Financial Year ended March 31, 2023, and March 31, 2024. The growth has been majorly observed due to increase of sales for product Forged Rings, Valve Components, Bleed Rings, Gear Forgings and Rail Pinion. Increase in sales of Forged Rings from 448.48 Lakhs in Financial Year ended 2023 to 485.42 Lakhs in the Financial Year ended 2024, which was mainly attributable to the growth of our business. Similarly, sales from Bleed Rings increased from 157.51 Lakhs in the Financial

Year ended 2023 to 360.89 Lakhs the Financial Year ended 2024. Further there was no sales from Rail Pinion in the Financial Year ended 2023 and in Financial Year ended 2024 revenue from Rail Pinion is 145.20 Lakhs.

Expenditure

Our Total Expenditure decreased by 508.32 Lakhs and 4.68% from 10,866.01 Lakhs in Fiscal Year 2023 to

10,357.69 Lakhs in Fiscal Year 2024. Overall expenditure was decreased primarily due to increases in costs of materials consumed and changes in inventories of finished goods.

Cost of Materials Consumed

Cost of Raw material consumed decreased by 11.50% and 962.01 Lakhs from 8,367.18 Lakhs in Fiscal year 2023 to 7,405.17 Lakhs in Fiscal year 2024, primarily due to lower prices of Carbon, Stainless and Alloy Steel pricing which constitutes to our major consumption of materials

Change in Inventories

Changes in inventories of finished goods, work-in-progress, and Stock-in-trade increased by 36.49% and 288.55 Lakhs from (790.70) Lakhs for the Fiscal Year 2023 to (502.15) Lakhs in Fiscal Year 2024.

Employee Benefit Expenses

Employee benefits expense increased by 15.69% to 98.73 Lakhs for the Financial Year 2024 from 629.09 Lakhs for the Financial Year 2023, primarily due to an increase in salaries, wages and bonus from 562.99 Lakhs for the financial year 2023 to 653.57 Lakhs for the Financial Year 2024, which was mainly attributable to (i) an increase in our permanent employee head count (comprising mainly sales employees and employees across various managerial functions) (ii) annual increments in employee salaries and wages. (iii) Contribution to provident and other funds (iv) Staff welfare expenses.

Finance Costs

Finance costs increased to 203.25 Lakhs for the Financial Year 2024 from 143.25 Lakhs for the Financial Year 2023 primarily due to Primarily attributable to an increase in interest on borrowings from Banks

Depreciation and Amortization Expenses

Depreciation and amortization expense decreased by 22.61% to 202.34 Lakhs for the Financial Year 2024 from

261.47 Lakhs for the Financial Year 2023.

Other Expenses

Other Expenses in terms of value and percentage increased by 65.54 Lakhs and 2.91% from 2,255.72Lakhs in the fiscal year ended March 31, 2022 to 2,321.26 Lakhs for the fiscal year ended March 31, 2024. The Increase in other expenses was mainly due to increase in sub- contracting expenses, power and fuel, Establishment and other expenses, rent, insurance, Inspection Charges ,rates and taxes, auditors remuneration, Legal and Professional charges, freight outward, and miscellaneous expenses.

Profit/(Loss) before Exceptional Item and Tax

Profit/(loss) before tax increased by 647.68 Lakhs in terms of value and in terms of percentage increase by 180.19% from 358.09 Lakhs in the fiscal year ended March 31, 2023 to 1,005.93 Lakhs for the fiscal year ended March 31, 2024. Profit before exceptional Items and Tax was increase due to decrease of raw material cost of the Company.

Tax Expenses

Our total tax expense increased by 241% and 198.32 Lakhs for the Financial Year 2024 from 82.25 Lakhs for the Financial Year 2023. Current tax expense increased to 308.95 Lakhs for the Financial Year 2024 from 91.70 Lakhs for the Financial Year 2023 primarily due to an increase in our restated profit before tax. Deferred tax expense decreased to (28.38) Lakhs for the Financial Year 2024 from (18.95) Lakhs for the Financial Year 2023.

Profit/(Loss) after Tax

Net Profit/(loss) has decreased from 275.84 Lakhs for the fiscal year ended March 31, 2023 to 725.36 Lakhs for the fiscal year ended March 31, 2024, reflecting an increase of 449.35 Lakhs due to the aforementioned reasons.

Financial Year Ended March 31, 2023 Compared With Financial Year Ended March 31, 2022

Income

Our Total Income increased by 21.43% and 1,980.94 from 9,243.16 in Fiscal Year 2022 to 11,224.10 in Fiscal Year 2023 Primarily due to an increase in our Revenue from Operations and other income as discussed below:

Revenue from Operation

There has been significant growth in revenue from operation in financial year ended 2021-22 and 2022-23. The growth has been majorly observed due to Increase of sales for product Forged Rings, Valve Components, Bleed Rings , Gear Forgings and Rail Pinion. Increase in sales of Forged Rings from 319.35 Lakhs in financial year ended 2022 to 448.48 Lakhs in Financial year ended 2023, which was mainly attributable to the growth of our business. Similarly, sales from Bleed Rings increased from 104.06 Lakhs in financial year ended 2022 to 157.51Lakhs in Financial year ended 2023. Increase in sales Rail Pinion from 963.46 in financial year ended 2022 to 1037.5 Lakhs in Financial year ended 2023.

Summary of Product wise revenue:

			For the Financial Year ended March 31
		2024		2023		2022
			Percenta		Percenta
Particulars		Amount				Amount	Percentage
			ge of	Amount	ge of
		( in				( in	of Total
			Total	( in Lakhs)	Total
		Lakhs)				Lakhs)	Revenue
			Revenue		Revenue
Forged Rings
New client		97.52	0.87%	299.68	2.72%	318.73	3.64%
Existing Client		387.9	3.45%	148.8	1.35%	0.62	0.01%
Total		485.42	4.32%	448.48	4.06%	319.35	3.65%
Valve Components
Existing Client		148.22		-	-	-	-
Existing Client (New
				284.15	2.57%	411.82	4.70%
Products)
Total		148.22	1.32%	284.15	2.57%	411.82	4.70%
Bleed Rings
Existing Client (New
		360.89	3.21%	157.51	1.43%	104.06	1.19%
Products)
Gear Forgings
New Client, New			--	--	--
		--				128.23	1.46%
Products
Existing Client (New						--	--
		69.27	0.62%	147.36	1.34%
Products)
Rail Pinion
Existing Client (New				--	--	--	--
		145.2	1.29%
Products)
Grand Total		1,209.00	10.76%	1,037.50	9.44%	963.46	11.04%
Total Revenue	from
		11,237.14	100.00%	10,995.51	100.00%	8,728.47	100.00%
operations

Expenditure

Our Total Expenditure increased by 2,006.10 Lakhs and 22.64% from 8,859.91 Lakhs in Fiscal Year 2022 to 10,866.01 Lakhs in Fiscal Year 2023. Overall expenditure was increased mainly due to an increase in the volume of operations and expansion of the Company. primarily due to increases in costs of materials consumed, other expenses, employee benefits expense and purchases of stock-in-trade, partially offset by changes in inventories of finished goods, work-in-progress.

Cost of Materials Consumed

Cost of Raw material consumed increased by 37.32% and 2,274.13 Lakhs from 6,093.05 Lakhs in Fiscal year

2022 to 8,367.18 Lakhs in Fiscal year 2023, primarily due to higher purchase of raw materials during the year, which was mainly attributable to an increase in the raw material prices and higher volumes of products manufactured due to higher sales.

Change in Inventories

Changes in inventories of finished goods, work-in-progress, and Stock-in-trade decreased by 794.27 Lakhs from 3.57 Lakhs for the Fiscal Year 2022 to (790.70) Lakhs in Fiscal Year 2023. In relation to inventories of finished goods, work-in-progress and stock in trade, we had an opening stock of 795.93 Lakhs and a closing stock of 792.36 Lakhs in financial year 2022, and an opening stock 792.36 Lakhs and a closing stock of 1,583.05

Lakhs for financial year 2023.

Employee Benefit Expenses

Employee benefits expense increased by 18.75% to 629.09 Lakhs for the Financial Year 2023 from 529.77 Lakhs for the Financial Year 2022, primarily due to an increase in salaries, wages and bonus from 473.71 Lakhs for the financial year 2022 to 562.99 Lakhs for the Financial Year 2023, which was mainly attributable to (i) an increase in our permanent employee head count (comprising mainly sales employees and employees across various managerial functions) (ii) annual increments in employee salaries and wages. (iii) Contribution to provident and other funds (iv) Staff welfare expenses.

Finance Costs

Finance costs significantly increased to 143.25 Lakhs for the Financial Year 2023 from 130.35 Lakhs for the

Financial Year 2022 primarily due to Primarily attributable to an increase in interest on borrowings from Banks

Depreciation and Amortization Expenses

Depreciation and amortization expense decreased by 14.07% to 261.47 for the Financial Year 2023 from 304.28 Lakhs for the Financial Year 2022, primarily due to an decrease in depreciation on property, plant and equipment to 259.46 Lakhs for the Financial Year 2022 from 301.70 for the Financial Year 2022, which was mainly attributable to higher capitalization of fixed assets during the Financial Year 2023, and an increase in amortization of intangible assets to 2.01 Lakhs for the Financial Year 2023 from 2.57 Lakhs for the Financial

Year 2022

Other Expenses

Other Expenses in terms of value and percentage increased by 456.84 Lakhs and 25.40% from 1,798.88 Lakhs in the fiscal year ended March 31, 2022 to 2,255.72Lakhs for the fiscal year ended March 31, 2023. The Increase in other expenses was mainly due to increase in consumption of stores and spare parts, sub- contracting expenses, power and fuel, Establishment and other expenses, other manufacturing expenses, rent, repairs and maintenance, Inspection Charges ,rates and taxes, auditors remuneration, commission, late delivery charges,, sundry balances written off, freight outward, s and miscellaneous expenses.

These increase were partially offset by decrease in insurance, telephone expenses, travelling expenses, Legal and professional charges, interest on delayed payment of income Tax, bad debts written off, provisional for doubtful debts, net loss on sale of fixed assets.

Profit/(Loss) before Exceptional Item and Tax

Profit/(loss) before tax decreased by 25.17 Lakhs in terms of value and in terms of percentage decrease by 6.57% from 383.26 Lakhs in the fiscal year ended March 31, 2022 to 358.09 Lakhs for the fiscal year ended March

31, 2023. Profit before exceptional Items and Tax was Decrease due to an increase in expenses of the Company.

Tax Expenses

Our total tax expense increased by 17.80% to 82.25 Lakhs for the Financial Year 2023 from 69.82 Lakhs for the Financial Year 2022. Current tax expense decreased to 91.70 Lakhs for the Financial Year 2023 from 101.70 Lakhs for the Financial Year 2022 primarily due to an decrease in our restated profit before tax. Deferred tax expense increased to (18.95) Lakhs for the Financial Year 2023 from (31.88) Lakhs for the Financial Year

2022 primarily due to deferred tax liability created on account of capitalization of certain property, plant and equipment and acquired intangible assets.

Profit/(Loss) after Tax

Net Profit/(loss) has decreased from 313.44 Lakhs for the fiscal year ended March 31, 2022 to 275.84 Lakhs for the fiscal year ended March 31, 2023, reflecting an decrease of 37.60 Lakhs due to the aforementioned reasons.

Changes in Cash Flows

The table below summaries our cash flows from our Restated Financial Statements for the the Financial Year ended on March 31, 2024, March 31, 2023, and March 31, 2022

	For the year ended March 31,
Particulars	2024	2023	2022
	( in Lakhs)	( in Lakhs)	( in Lakhs)
Net cash (used in)/ generated from operating Activities	(251.72)	(40.82)	401.19
Net cash (used in)/ generated from investing Activities	(24.33)	(91.87)	254.00
Net cash (used in)/ generated from financing Activities	261.92	27.07	(542.58)
Net increase/ (decrease) in cash and cash Equivalents	(14.13)	(105.62)	112.60
Cash and Cash Equivalents at the beginning of the period	15.00	120.62	8.02
Cash and Cash Equivalents at the end of the Period	0.88	15.00	120.62

Operating Activities

Period ended March 31, 2024

In the Financial Year ended on March 31, 2024, Cash flow from operating activities was 251.72 Lakhs .

Operating (loss) before working capital changes was 1,338.96 Lakhs in the Financial Year ended on March 31, 2024, included decreased in trade receivables by 85.99 Lakhs , decrease in loans and advances by 373.82 Lakhs, increase in other current asset by 2.42 Lakhs, decrease in other non-current assets by 6.95 Lakhs, increase in Inventories by 912.00 Lakhs, decrease in Trade payable by 453.39 Lakhs , and decrease in other current liabilities and provision by 198.17Lakhs. Also, Net income tax refund was 145.00 Lakhs .

Financial year 2022-23

In fiscal Year 2023, Cash flow from operating activities was (40.82) Lakhs in Fiscal 2023 our profit before tax was 358.09 Lakhs Primary adjustments consisted of depreciation and amortization expense of 261.47 Lakhs.

Operating (Loss) before working capital changes was 749.89 Lakhs in Fiscal 2023. The main working capital adjustments in Fiscal 2023 included increased in trade receivables by 434.53 Lakhs, increase in loans and advances by 391.37 Lakhs , increase in other current asset by 44.71 Lakhs ,decrease in other non-current assets by 70.69 Lakhs ,increase in Inventories by 1,184.14 Lakhs ,increase in Trade payable by 1,416.53 Lakhs, and decrease in other current liabilities and provision by 67.97 Lakhs. Also Net income tax paid was 155.22 Lakhs.

Financial year 2021-22

In fiscal Year 2022, Cash flow from operating activities was 401.19 Lakhs in Fiscal 2022 our profit before tax was 383.26 Lakhs Primary adjustments consisted of depreciation and amortization expense of 304.28 Lakhs.

Operating profit before working capital changes was 382.59 Lakhs in Fiscal 2023. The main working capital adjustments in Fiscal 2022 included increased in trade receivables by 400.53 Lakhs, increase in loans and advances by 178.84 Lakhs , Decrease in other current asset by 42.72 Lakhs ,decrease in other non-current assets by 49.99 Lakhs, increase in Inventories by 61.06 Lakhs ,increase in Trade payable by 414.73 Lakhs, and increase in other current liabilities and provision by 261.59 Lakhs. Also Net income tax paid was 110.00 Lakhs.

Investing Activities

Period ended March 31, 2024

Net cash from investing activities was 24.33 Lakhs in the Financial Year ended on March 31, 2024, , primarily on account of decrease in purchase of property, plant and equipment of 34.93 Lakhs and interest received of

10.60 Lakhs .

Financial year 2022-23

Net cash used in investing activities was (91.87) Lakhs in fiscal year Ended March 31, 2023, primarily on account of purchase of property, plant and equipment of (108.21) Lakhs and interest income made by 16.34 Lakhs.

Financial year 2021-22

Net cash from investing activities was 254 Lakhs fiscal year ended March 31,2022 primarily on account of purchase of property, plant and equipment of (218.60) Lakhs , sale of property plant and Equipment of 471.25 Lakhs. And Interest Income made by 1.34 Lakhs.

Financing Activities.

Period ended March 31, 2024

Net cash flow used in financing activities was [261.92 Lakhs . These were on account of repayment of long-term borrowing of 465.17 Lakhs and interest paid of 203.25 Lakhs.

Financial year 2022-23

Net cash flow generated from financing activities for the financial year March 31, 2023, was 27.07 Lakhs which was primarily on account of proceeds of long-term borrowings of 170.53Lakhs and interest Paid 143.46 Lakhs

Financial year 2021-22

Net cash flow used in financing activities for the financial year March 31, 2022, was (542.58) Lakhs which was primarily on account repayment of borrowings of 411.67 Lakhs and Interest paid 130.92 Lakhs.

Other Key Ratios

The table below summaries key ratios in our Restated Financial Statements for the Financial Year ended on March 31, 2024, March 31, 2023, and March 31, 2022:

			For the year ended March 31,
Particulars	2024		2023		2022
	( in Lakhs)		( in Lakhs)		( in Lakhs)
Fixed Asset Turnover Ratio	12.33		10.14		7.26
Current Ratio	1.20		1.07		1.22
				For the year ended March 31,
Particulars		2024		2023		2022
		( in Lakhs)		( in Lakhs)		( in Lakhs)
Debt Equity Ratio		1.09		1.29		0.60
Inventory Turnover Ratio		1.79		-		0.38

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

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

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

Inventory Turnover Ratio: This is defined as average inventory divided by total turnover based on Financial Statements as restated.

Financial Indebtedness

As on March 31, 2024, the total outstanding borrowings of our Company is 2492.82 Lakhs. For further details, refer to the section titled "Statement of Financial Indebtedness" beginning on page 202 of this Red Herring Prospectus.

Particulars	March 31, 2024 ( in Lakhs)
Loans from Banks and Financial Institutions	2,492.80
Unsecured Loans from Related Party	680.19
Total	3,172.99

Related Party Transactions

Related party transactions with our promoters, directors and their entities and relatives primarily relate to the purchase and sale of products and services. For further information, please refer to the section titled "Financial Statements as Restated" on page 198 of this Red Herring Prospectus.

Off-Balance Sheet Items

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

Qualitative Disclosure about Market Risk

Financial Market Risks

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. Financial instruments affected by market risk include loans, borrowings, term deposits, and investments.

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Effect of Inflation

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

Credit Risk

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

Reservations, Qualifications and Adverse Remarks

Except as disclosed in section titled "Summary of Restated Financial Statements" beginning on page 63 of this Red Herring Prospectus, there have been no reservations, qualifications, and adverse remarks.

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

Except as disclosed in section titled "Summary of Restated Financial Statements" beginning on page 63 of this Red Herring Prospectus, there have been no defaults in payment of statutory dues or repayment of debentures and interest thereon or repayment of deposits and interest thereon or repayment of loans from any bank or financial institution and interest thereon by the Company.

Factors That May Affect The Results Of The Operation

Unusual or infrequent events or transactions.

Except as described in this Red Herring Prospectus, during the period under review there have been no events or transactions, which in our best judgement would consider unusual or infrequent on account of business activity, unusual items of income, change of accounting policies and discretionary reduction of expenses.

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

Our business has been subject, and we expect it to continue to be subject, to significant economic changes arising from the trends identified above in "Significant Factors affecting our Results of Operations" and the uncertainties described in the section entitled ‘Risk Factors beginning on page 30 of the Red Herring Prospectus.

To our knowledge, except as we have described in the Red Herring Prospectus, there are no known factors which we expect to bring about significant economic changes that could materially affect or are likely to affect income from continuing operations.

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

Except as mentioned above and other than as described in this Red Herring Prospectus, particularly in the section titled ‘Risk Factors and this ‘Managements Discussion and Analysis of Financial Position and Results of Operations beginning on page 30 and 204, respectively of this Red Herring Prospectus, to our knowledge, there are no known trends or uncertainties that are expected to have a material adverse impact on our sales, revenues or income from continuing operations.

Future relationship between cost and income

Our Companys future costs and revenues will be determined by demand/supply situation, government policies.

Increase in net sales or revenue and Introduction of new products or services or increased in sales prices.

Increase in revenue are by and large linked to increase in volume of business and inception of new varieties of products.

Total Turnover of each major industry segment in which Company operated.

Relevant Industry data, as available, has been included in the section titled ‘Industry Overview beginning on page 119 of the Red Herring Prospectus.

Status of any publicly announced new products or business segment.

Our Company has not announced any new product and segment, except otherwise disclosed in this Red Herring Prospectus.

Seasonality of Business

Our Companys business is not seasonal in nature.

Competitive conditions

We face competition from existing and potential competitors, which is common for any business. We have, over a period of time, developed certain competitors who have been discussed in section titled ‘Our Business beginning on page 129 of this Red Herring Prospectus.