Parth Electricals & Engineering Ltd Management Discussions

Overview

The following discussion of our financial condition and results of operations should be read in conjunction with our restated financial statements as of and and financial year(s) ended March 31, 2025, 2024 and 2023 prepared in accordance with the Companies Act, 1956 and Companies Act, 2013 to the extent applicable and as and restated in accordance with the SEBI (ICDR) Regulations, including the schedules, annexure and notes thereto and the reports thereon, included in "Financial Information" beginning on page 245 of this Red Herring Prospectus.

This discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those set forth in "Risk Factors" and "Forward-Looking Statements" beginning on pages 32 and 22 respectively, of this Red Herring Prospectus . Our Financial Year ends on March 31 of each year. Accordingly, all references to a particular Financial Year are to the 12 months ended March 31 of that year.

Business Overview

Mr. Jigneshkumar Gordhanbhai Patel started his business as proprietorship firm in 2005 after serving one year in Jyoti and eight years in Siemens post his graduation in Electrical Engineering from Sardar Patel University, Gujarat. In 2007 the proprietorship firm converted into Private Limited Company i.e. Parth Electricals & Engineering Private Limited, with a vision to be the preferred, well known, reliable, and quality supplier & service provider to our customers in power sector and a mission to give people, the power for measuring, controlling and analyzing the current and voltage with safety. We are the employer of choice offering team members opportunities for growth, advancement and rewarding careers in a safe working environment.

In the initial years, the company was focused on providing services in the Power distribution and transmission sector by implementing solutions for the clients based on their requirements. During the process of implementation, we came across numerous challenges on the ground relating to design of the products, size of the products, challenges for civil work around the product and several others.

With this knowledge and understanding in 2009, the first manufacturing set up was implemented to manufacture MV panels by the company in Gujarat.

Over the last two decades of its existence Parth Electricals has evolved as a serious and significant player in the Power distribution sector mainly in the urban sector with specialization in Low Voltage equipment manufacture and has grown its service capabilities across the gamut of services required in this sector through constant upgradation and training of its people and processes.

Services have been an integral part of the company and has been instrumental in the procurement of numerous prestigious clients and orders for the company.

Our current business profiles are as follows:

Manufacturing & Supply	? RMU under the Technology Transfer agreement with Schneider Electric Industries SAS, France
	? PSS / CSS under the Technology Transfer agreement with Schneider Electric Industries SAS, France
	? MV Switchgear Panels as an Outsourcing Partner of Schneider Electric India Limited
	? Control & Protection Relay Panels
	? Metering Panels
	? Earth Link Boxes for High Voltage cable grounding
	? Metering Panels for HT consumers
Services and EPC	? Complete Installation, testing, commissioning services for Electrical Substations up to 220KV
	? Complete Installation, testing, commissioning services for Power Cables up to 220KV
	? Specialized installation & commissioning services for Gas Insulated switchgears up to 400 KV
	? Specialized installation & commissioning services for Air Insulated switchgears up to 220 KV
	? Certified to provide specialized services for installation and assembling of cables systems accessories from Pfisterer Switzerland AG and Raychem joints and terminations up to 220KV cable.
	? Repair & Refurbishment of RMUs: Provide service to clients to optimize the remaining life of switchgears instead of scrapping them
	? Health check-up of all MV, LV, HV & EHV switchgears and panels

We are a technology-driven company with a focus on quality, design, and product development. We have also entered into technology transfer agreements with Schneider Electric Industries SAS to provide better services and products to our customers. Schneider Electric Industries SAS is a global industrial technology company that provides expertise in electrification, automation, and digitization. Under these agreements, we are authorized by Schneider Electric to manufacture, assemble, test, market and sell the product as per Schneiders type tested design and transfer of technology. Schneider

Electric Industries SAS (Licensor) shall provide Parth (Licensee) with all technical information required to manufacture Schneider Electric Industries SAS make RMU and CSS/PSS. Our Company is also an outsourcing partner of Schneider Electric for manufacturing of MV panels.

Our Company has a dedicated team of engineers involved in designing and developing solutions that enable us to manufacture Electrical Panels, RMUs, and CSS for Power Distribution ranging from 415 V to 33 kV, as well as Protection Relay Control Panels ranging from 33 kV to 132 kV.

Significant Developments subsequent to the last audited period

In the opinion of the Board of Directors of our Company, since the date of the last audited period ended March 31, 2025, as disclosed in this Red Herring Prospectus, there are no circumstances that materially or adversely affect or are likely to affect the trading or profitability of our Company or the value of its assets or its ability to pay its material liabilities after the financial year 2024-25 before the filing of Red Herring Prospectus except as follows:

1. The Board of Directors have decided to get their equity shares listed on Emerge Platform of National Stock Exchange of India Limited and pursuant to Section 62(1)(c) of the Companies Act 2013, by a resolution passed at its meeting held on December 10, 2024, proposed the Issue, subject to the approval of the shareholders and such other authorities as may be necessary.

2. The shareholders of the Company have, pursuant to Section 23 of the Companies Act 2013, by a special resolution passed in the Extraordinary General Meeting held on December 31, 2024, authorized the Initial Public Issue.

Factors Affecting our Results of Operations:

Our financial condition and results of operations are affected by numerous factors and uncertainties, including those discussed in the section titled ‘Risk Factors on page 32 of this Letter of Offer. The following is a discussion of certain factors that have had, and we expect will continue to have, a significant effect on our financial condition and results of operations:

? Any adverse changes in central or state government policies;

? Any qualifications or other observations made by our statutory auditors which may affect our results of operations;

? Loss of one or more of our key customers and/or suppliers;

? An increase in the productivity and overall efficiency of our competitors;

? Our ability to maintain and enhance our brand image;

? Our reliance on third party suppliers and imports for our raw materials;

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

? Changes in technology and our ability to manage any disruption or failure of our technology systems;

? Changes in political and social conditions in India or in countries that we may enter, the monetary and interest rate policies of India and other countries, inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;

? The performance of the financial markets in India and globally;

? Occurrences of natural disasters or calamities affecting the areas in which we have operations;

? Market fluctuations and industry dynamics beyond our control;

? Our ability to compete effectively, particularly in new markets and businesses;

? Changes in foreign exchange rates or other rates or prices;

? Inability to collect our dues and receivables from, or invoice our unbilled services to, our customers, our results of operations;

? Other factors beyond our control;

? Our ability to manage risks that arise from these factors;

? Changes in domestic and foreign laws, regulations and taxes and changes in competition in our industry;

? Termination of customer contracts without cause and with little or no notice or penalty; and

? Inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals or noncompliance with and changes in, safety, health and environmental laws and other applicable regulations, may adversely affect our business, financial condition, results of operations and prospects.

SIGNIFICANT ACCOUNTING POLICIES:

For Significant accounting policies please refer "Significant Accounting Policies to the Restated Financial Statements", under Section titled "Financial Information" beginning on page 214 of the Red Herring Prospectus.

SUMMARY OF THE RESULTS OF OPERATION:

The following table sets forth select financial data from restated profit and loss accounts the financial year(s) ended on March 31, 2025, March 31, 2024 and March 31, 2023 and the components of which are also expressed as a percentage of total income for such periods.

Particulars	FY25	% of Total Revenue	FY24	% of Total Revenue	FY23	% of Total Revenue
Revenue from Operations	17,467.17	98.29%	8,678.49	99.56%	6,553.34	99.74%
Other Income	304.63	1.71%	38.01	0.44%	16.95	0.26%
Total	17,771.80	100.00%	8,716.5 0	100.00%	6,570.29	100.00%
Expenditure
Cost of Material Consumed	14,311.38	80.53%	6012.14	68.97%	5,314.04	80.88%
Changes in Inventories of Finished Goods	(384.75)	(2.16%)	241.35	2.77%	(488.59)	(7.44%)
Employee Benefit Expenses	968.61	5.45%	708.90	8.13%	590.42	8.99%
Finance Costs	371.83	2.09%	171.66	1.97%	100.37	1.53%
Depreciation and Amortization Expense	178.08	1.00%	154.61	1.77%	71.23	1.08%
Other Expenses	970.33	5.46%	811.42	9.31%	706.76	10.76%
Total	16,415.49	92.37%	8,100.07 92.93%	6294.23	95.80%
Profit before Tax and exceptional items	1,356.31	7.63%	616.42	7.07%	276.05	4.20%
Exceptional Items	-	0.00%	-	0.00%	-	0.00%
Net Profit before Tax	616.42	7.85%	616.42	7.07%	276.05	4.20%
Less: Provision for Taxes
Current Tax	348.20	2.02%	159.27	1.83%	29.39	0.45%
Deferred Tax	(3.34)	-0.03%	-3.87	-0.04%	1.90	0.03%
Tax Adjustments of earlier Years	(0.24)	0.00%
Net Profit after Tax	461.02	5.86%	461.02	4.87%	244.77	3.73%

MAIN COMPONENTS OF PROFIT AND LOSS ACCOUNT

The margins associated with the various products and services offered by the Company are provided below:

S. No. Product Name	Margin
1. CSS & PSS (Manufacturing & Supply)	10-17%
2. Panel (Manufacturing & Supply)	06-15%
3. RMU (Manufacturing & Supply)	10-20%
4. Transformer (Manufacturing & Supply)	7-10%
5. Termination Kit (Manufacturing & Supply)	10-15%
6. Other (Manufacturing & Supply)	12-17%
7. Earth Link Box (Service & EPC)	15-20%
8. Service (Service & EPC)	25-30%

Income

Our Total Income comprises of Revenue from core business operations and Other Income.

Revenue from operations

The Revenue from operations consist of revenue from sale of products. Our revenue from operations as a percentage of total revenue was 98.29%, 99.56% and 99.74% for the financial year ended FY25, FY24 and FY23 respectively.

Other Income

Other income comprises of interest income, foreign exchange gain, gain on sale of property, plant and equipment, other income and Sundry balances written off. Other Income as a percentage of Total Revenue was 1.7%, 0.44% and 0.26% for the financial year ended FY25, FY24 and FY23 respectively. In FY 25, FY 24 and FY 23 interest on fixed deposit, other income and foreign exchange gain have been the major contributors to the other income.

Expenditure

Our total expenditure primarily consists of cost of material consumed, changes in inventories of finished goods, employee benefit expenses, finance expenses, depreciation and amortization and other expenses which is 92.37%, 92.93 and 95.80% of total revenue for the financial year ended FY25, FY24 and FY23 respectively.

Cost of Material Consumed:

Cost of Material Consumed is represented by purchases of raw materials. cost of material consumed form a major part of the total expenditure and over the years with 80.53%, 68.97%, 80.88% recorded in the financial year ended FY25, FY24 and FY23 respectively.

Employee Benefit Expenses:

Employee benefit expenses include salaries, wages and bonus, managerial remuneration, contribution to provident and other funds and staff welfare expenses. employee benefit expenses as a percentage of total revenue were 5.45%, 8.13% and 8.99% for the financial year ended FY25, FY24 and FY23 respectively.

Other Expenses:

Other expenses are bifurcated into two components. first component consists of direct expenses which includes freight inward, power and fuels, testing charges and other direct expenses. second component consists of foreign exchange loss, repairs and maintenance expenses, audit fees, freight charges, interest expenses, insurance expenses, rent, rates and taxes, legal charges, miscellaneous expenses, office expenses, professional fees, research and development expenses, sales promotion expenses and travelling and conveyance expenses. other expenses as a percentage of total revenue were 5.46%, 9.31%, 10.76% for the financial year ended FY25, FY24 and FY23 respectively. The primary reason for the reduction in cost is the economies of scale achieved through large-scale operations. As the scale of business operations increases, the average cost decreases due to factors such as more efficient utilization of resources, improved labour productivity, and the spreading of fixed costs over a larger output.

Finance Cost:

Finance Cost includes bank charges, swift charges, bank guarantee commission, interest on vehicle loan, interest on term loan, interest on working capital loan, bank interest and interest on unsecured loan which has increased from 100.37 Lakhs in FY 2023-24 to 371.83 Lakhs in FY 2024-25.

Depreciation & Amortization:

Depreciation & amortization includes depreciation on tangible and intangible assets which has increased from 71.23 lakhs in FY 2023-24 to 178.08 lakhs in FY 2024-25.

FINANCIAL YEAR 2024-25 COMPARED WITH 2023-24

The total income for FY2024-25 has increased by 103.89% from 6,570.29 lakhs for FY 2023-24 to 17,771.80 lakhs for FY 2024-25.

Revenue from Operations

The Companys total revenue increased from 8,678.49 lakhs in FY24 to 17,467.17 lakhs in FY25, representing a robust growth of 101.27%. The revenue bifurcation in FY 24 and FY 25.

The growth in revenue in FY25 over FY24 is driven by a strategic realignment towards high-demand products such as RMUs. The Company capitalized on strong market demand, increased production capacity, scalability and efficient execution of key orders to achieve this performance.

Other Income

Other income increased drastically from 38.01 lakhs for FY 2023-24 to 304.63 lakhs for FY 2024-25.

Cost of Materials Consumed

Cost of materials consumed increased by 138.04% from 6012.14 lakhs for FY 2023-24 to 14,311.38 lakhs for FY 2024-25. The increase in the cost of materials consumed can be attributed to increase in sales by 101.27% from the previous year. The cost of material consumed as a percentage of sales has increased by 12.66% from 69.28% of total revenue for FY 24 to 81.93% of total revenue for FY 25.

Employee Benefit Expenses

Employee benefit expense has been increased by 36.64% from 708.90 lakhs for FY 2023-24 to 968.61 lakhs for FY 2024-25 mainly due to increase in salaries, wages and bonus.

Other Expenses

Other Expenses has been increased by 4.78% from 811.42 lakhs for FY 2023-24 to 970.33 lakhs for FY 2024-25 primarily due to increase in the direct expense segment of the other expenses, specifically due to increase in freight inward expenses from 74.73 Lakhs in FY 2023-24 to 147.40 Lakhs in FY2024-25.

Depreciation & Amortization

Depreciation & amortization expense has increased from 154.61 lakhs for FY 2023-24 to 178.08 lakhs for FY 2024-25. The increase was primarily attributable to the increase in the tangible assets during the year.

Profit before tax

Profit before tax has increased by 120.03% from 616.43 lakhs for FY 2023-24 to 1,356.31 lakhs for FY 2024-25. The substantial increase in profit before tax was due to increase in total revenue recorded during FY 2024-25.

Tax Expense

Tax expense has increased from 159.27 lakhs to 348.20 lakhs for the FY 2023-24 to FY 2024-25. The increase in tax expense incurred was primarily due to higher profit before tax for FY24 as compared to FY23.

Profit after tax

Our Company recorded an increase in PAT in FY24, driven by a combination of higher topline growth, improved operational efficiency and a strategic shift toward high-margin product categories.

Revenue grew from 6,553.34 lakhs in FY24 to 17,467.17 lakhs in FY25, representing a 101.27% increase, which had a direct positive impact on the bottom line. The rise in turnover enabled better utilization of manufacturing capacity and absorption of fixed overheads, improving EBITDA margins. The significant increase in PAT in FY24 compared to FY23 is a result of: ? Strategic shift toward scalable manufacturing businesses ? Sharp growth in the RMU ? Improved operating leverage and scale efficiencies ? Lower reliance on service activities

Other key ratios:

Particulars	For the Financial Years ended March 31,
	2024	2023
Return on Net worth %	24.92%	31.81%
Current Ratio (times)	1.13	1.01

Return on Net worth

This is defined as Net profit after tax by Net worth, based on the restated summary statements.

Current Ratio

This is defined as total current assets by total current liabilities, based on the Restated Summary Statements.

FINANCIAL YEAR 2023-24 COMPARED WITH 2022-23

The total income for FY2023-24 has increased by 32.67% from 6,570.29 lakhs for FY 2022-23 to 8,716.50 lakhs for FY 2023-24.

Revenue from Operations

The Companys total revenue increased from 6,553.34 lakhs in FY23 to 8,678.49 lakhs in FY24, representing a robust growth of 32.43%. The revenue bifurcation in FY 23 and FY 24 has been shown below:

( in lakhs)

				( in lakhs)
Product Name	F.Y.2022- 23	% of Total Sales	F.Y.2023- 24	% of Total Sales
CSS & PSS (Manufacturing & Supply)	902.27	13.77%	1,130.66	13.03%
Panel (Manufacturing & Supply)	1,122.41	17.13%	1,175.40	13.54%
RMU (Manufacturing & Supply)	1,327.59	20.26%	4,492.73	51.77%
Transformer (Manufacturing & Supply)	22.56	0.34%	193.27	2.23%
Termination Kit (Manufacturing & Supply)	106.90	1.63%	334.44	3.85%
Other (Manufacturing & Supply)	1,625.94	24.81%	646.87	7.45%
Earth Link Box (Service & EPC)	5.38	0.08%	10.97	0.13%
Service (Service & EPC)	1,440.30	21.98%	694.15	8.00%
Total	6,553.34	100.00%	8,678.49	100.00%

As shown from the above table, the major reason for increase in the revenue in FY 24 is due to increase in Manufacturing of RMU. The RMU segment recorded a 238.41% increase in revenue, becoming the largest contributor to total sales at 51.77% in FY24 (20.26% in FY23). There was a significant increase in demand for RMUs, mainly due to higher government and utility sector spending on urban distribution network upgrades and smart grid projects. The Company successfully executed multiple high-value orders during FY 23-24 leading to a substantial increase in sales of RMUs in FY24 by 3,165.14 lakhs.

Further, Revenue from Service & EPC segments (including Service and Other) declined as part of a deliberate strategic shift to focus more on manufacturing. The margin at operational level is at 25% for a service job and only approximately 10% for a manufacturing job, however, based on manpower efficiencies, productivity, scalability and turnaround time, the manufacturing provides a higher turnover and higher return on capital employed which was the one of the reasons for increase in sale in FY24.

The service orders are sporadic in nature and come from vast geographies which require lot of time and effort in managing manpower logistics. Once deployed at a site, the manpower cannot do multiple task and, on many instances, the work is also delayed pending third party clearances at the site. The company has been following a lean mean structure at initial phase of growth and based on the understanding they realise that better potential utilization of manpower was more in a manufacturing set up for growth in services, an entire new set up of manpower is required only to be deployed for services. Also, strategically, the services were provided mostly to acquire a new customer based on relationship and capability shown during the services provided.

The Manufacturing Segment has improved significantly as capacity utilization increases and fixed costs are absorbed over larger volumes. Manufacturing operations also offer greater standardization, repeatability and automation which make them more scalable compared to service-based operations that are manpower-intensive and project-specific.

The growth in revenue in FY24 over FY23 is driven by a strategic realignment towards high-demand products such as RMUs. The Company capitalized on strong market demand, increased production capacity, scalability and efficient execution of key orders to achieve this performance.

Other Income

Other income increased drastically from 16.95 lakhs for FY 2022-23 to 38.01 lakhs for FY 2023-24.

Cost of Materials Consumed

Cost of materials consumed increased by 13.14% from 5,314.04 lakhs for FY 2022-23 to 6012.14 lakhs for FY 2023-24. The increase in the cost of materials consumed can be attributed to increase in sales by 32.43% from the previous year. The cost of material consumed as a percentage of sales has decreased by 11.81% from 81.09% of total revenue for FY 23 to 69.28% of total revenue for FY 24. which indicates the efficiency brought in by the company in the manufacturing and procurement facility.

Employee Benefit Expenses

Employee benefit expense has been increased by 20.07% from 590.42 lakhs for FY 2022-23 to

708.90 lakhs for FY 2023- 24 mainly due to increase in salaries, wages and bonus.

Other Expenses

Other Expenses has been increased by 14.81% from 706.76 lakhs for FY 2022-23 to 811.42 lakhs for FY 2023-24 primarily due to decrease in the direct expense segment of the other expenses, specifically due to increase in freight inward expenses from 46.85 Lakhs to 74.73 Lakhs in FY2023-24.

Depreciation & Amortization

Depreciation & amortization expense has increased from 71.23 lakhs for FY 2022-23 to 154.61 lakhs for FY 2023-24. The increase was primarily attributable to the increase in the tangible assets during the year.

Profit before tax

Profit before tax has increased by 123.30% from 276.06 lakhs for FY 2022-23 to 616.43 lakhs for FY

2023-24. The substantial increase in profit before tax was due to decrease in cost of raw material consumed recorded during FY 2023-24.

Tax Expense

Tax expense has increased to 159.27 lakhs from 29.39 lakhs for FY 2023-24 to FY 2022-23. The increase in tax expense incurred was primarily due to higher profit before tax for FY24 as compared to FY23.

Profit after tax

Our Company recorded an increase in PAT in FY24, driven by a combination of higher topline growth, improved operational efficiency and a strategic shift toward high-margin product categories.

Revenue grew from 6,553.34 lakhs in FY23 to 8,678.49 lakhs in FY24, representing a 32.43% year-on-year increase, which had a direct positive impact on the bottom line. The rise in turnover enabled better utilization of manufacturing capacity and absorption of fixed overheads, improving EBITDA margins.

The revenue from RMU increased from 1,327.59 lakhs in FY23 to 4,492.73 lakhs in FY24, reflecting a growth of ~238.5%. RMUs typically offer better margins due to tailor made requirement, standardized manufacturing and strong demand from utilities and smart grid projects. The contribution of RMU to total sales rose sharply from 20.26% in FY23 to 51.77% in FY24, significantly enhancing gross margins and profitability.

Contribution from service activities declined, while manufacturing segments expanded. The revenue from service decreased from 1,440.30 lakhs to 694.15 lakhs and ‘Other manufacturing segment dropped from 1,625.94 lakhs to 646.87 lakhs.

The significant increase in PAT in FY24 compared to FY23 is a result of:

? Strategic shift toward scalable manufacturing businesses

? Sharp growth in the RMU

? Improved operating leverage and scale efficiencies

? Lower reliance on service activities

Other key ratios:

Particulars	For the Financial Years ended March 31,
	2024	2023
Return on Net worth %	31.81%	25.54%
Current Ratio (times)	1.01	0.69

Return on Net worth

This is defined as Net profit after tax by Net worth, based on the restated summary statements.

Current Ratio

This is defined as total current assets by total current liabilities, based on the Restated Summary Statements.

CASH FLOW

The table below summaries our cash flows from our Restated Financial Information for financial years March 31, 2025, March 31, 2024, and March 31, 2023:

(Rs. in Lakhs)

	For the Financial Years ended March 31,
Particulars	2025	2024	2023
Net cash (used in)/ Generated from operating activities	30.19	752.60	310.84
Net cash (used in)/ Generated from investing activities	(1,045.38)	-727.62	-29.58
Net cash (used in)/ Generated from finance activities	2,974.93	643.78	-146.18

Cash flow from operating activities:

For the year ended 31^st March 2025

The Net cash (used in)/ Generated from operating activities is 30.19 lakhs which consisted of profit before tax of 1,356.32 lakhs as adjusted primarily for:

I. Depreciation and amortization of non- current assets of 178.08 lakhs.

II. Profit on sale of property, plant & equipment of 2.41 lakhs

III. Interest and finance charges of 371.82 lakhs for the period of six months

IV. Interest Income 144.62 lakhs

V. Profit on Investment of 5.93

VI. Sundry Debtor written off of 0.30 lakhs

VII. Working capital changes primarily due to increase in trade receivables of (176.86) lakhs, increase in short term loans and advances of (310.07) lakhs, increase in inventories of raw materials, finished goods, and work in process of (436.62) lakhs, increase in Other Current Assets of (116.37), decrease in trade payables of (1,278.18) lakhs, increase in Provisions of 188.93 and increase in other liabilities of 753.77 lakhs.

For the year ended 31st March 2024

The Net cash (used in)/ Generated from operating activities is 752.60 lakhs which consisted of profit before tax of 616.42 lakhs as adjusted primarily for:

I. Depreciation & amortization of non-current Assets of 154.61 lakhs

II. Profit on sale of property, plant & equipment of ( 0.46) lakhs

III. Interest and finance charges of 171.66 lakhs for the period

IV. Interest income ( 20.16) lakhs

V. Cash discount of 0.30 lakhs

VI. Working capital changes primarily due to increase in trade receivables of ( 239.52) lakhs, increase in short term loans and advances of ( 75.68) lakhs, increase in inventories of raw materials, finished goods, and work in process of ( 85.29) lakhs, increase in trade payables of 200.31 lakhs and increase in other liabilities of 21.67 lakhs.

For the year ended 31^st March 2023

The Net cash (used in)/ Generated from operating activities is 310.84 lakhs which consisted of profit before tax of 276.06 lakhs as adjusted primarily for:

I. Depreciation & amortization of non-current Assets of 71.23 lakhs.

II. Profit on sale of property, plant & equipment of ( 2.39) lakhs

III. Interest and finance charges of 100.37 lakhs for the period.

IV. Interest Income ( 10.49) lakhs.

V. Cash discount of 0.36 lakhs

VI. Working capital changes primarily due to increase in trade receivables of 976.46 lakhs, increase in short term loans and advances of ( 43.11) lakhs, increase in inventories of raw materials, finished goods, and work in process of ( 498.03) lakhs, increase in trade payables of 1139.69 lakhs and increase in other liabilities of 254.32 lakhs.

Cash flow from Investing Activities:

For the year ended March 31, 2025

The net cash (used in)/ generated from investing activities is ( 1,045.38) lakhs primarily due to purchase of fixed assets of ( 1,166.64) lakhs, Sale of Property, Plant & Equipment of 2.72 lakhs, interest income received of 144.62 lakhs, purchase of investment of ( 32.01) lakhs and sale of property, plant and equipment of 5.93 lakhs.

For the year ended March 31, 2024

The net cash (used in)/ generated from investing activities is ( 769.20) lakhs primarily due to purchase of fixed assets of ( 737.51) lakhs, interest income received during the period of 20.16 lakhs, increase in long term loans and advances of ( 29.86) lakhs, purchase of investment of ( 21.98) lakhs.

For the year ended March 31, 2023

The net cash (used in)/ generated from investing activities is ( 92.37) lakhs primarily due to purchase of fixed assets of ( 43.46) lakhs, interest income received during the period of 10.48 lakhs, increase in long term loans and advances of ( 40.56) lakhs, purchase of investment of ( 22.23) lakhs and sale of property, plant and equipment of 3.40 lakhs.

Cash flow from Financing Activities:

For the year ended March 31, 2025

The net cash (used in)/ generated from financing activities is 2,974.93 lakhs primarily due to proceeds from issue of equity share capital of 1597.88 lakhs, Interest and finance charges incurred of (371.82) lakhs, decrease of long term borrowings of ( 641.31) lakhs and increase of short term borrowings of 2,390.19 lakhs.

For the year ended March 31, 2024

The net cash (used in)/ generated from financing activities is 598.98 lakhs primarily due to proceeds from issue of equity share capital of 30.00 lakhs, interest and finance charges incurred of ( 171.66) lakhs and increase of borrowings of 740.64 lakhs.

For the year ended March 31, 2023

The net cash (used in)/ generated from financing activities is ( 169.02) lakhs primarily due to interest and finance charges incurred of ( 100.37) lakhs and decrease of borrowings of ( 68.65) lakhs.

OTHER FACTORS

An analysis of reasons for the changes in significant items of income and expenditure is given hereunder:

1. Unusual or infrequent events or transactions

There has not been any unusual trend on account of our business activity. Except as disclosed in this Draft Prospectus, there are no unusual or infrequent events or transactions in our Company.

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

There are no significant economic changes that may materially affect or likely to affect income from continuing operations.

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

Apart from the risks as disclosed under Section "Risk Factors" beginning on page 32 of the Draft Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues

Other than as described in the sections "Risk Factors", "Our Business" and "Managements Discussion and Analysis of Financial Condition and Results of Operations" on pages 32, 147 and 246 respectively, to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.

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

We currently operate in the Electric Vehicle manufacturing segment. For details on revenue break-up from each segment, kindly refer the chapter titled "Our Business" beginning on Page 147. Relevant industry data, as available, has been included in the section titled "Industry Overview" beginning on page 109 of this Draft Prospectus.

6. Status of any publicly announced New Products or Business Segment

Except as disclosed in the Section "Our Business", our Company has not announced any new product or service.

7. Seasonality of business

Our Companys business is not seasonal in nature.

8. Dependence on single or few customers or suppliers

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

9. Competitive conditions

Competitive conditions are as described under the Sections "Industry Overview" and "Our Business" beginning on pages 129 and 147 respectively of this Draft Prospectus.