Patel Retail Ltd Management Discussions

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS

You should read the following discussion of our financial condition and results of operations together with the Restated Financial Statements as of Fiscals 2025, 2024 and 2023, including the notes and significant accounting policies thereto and the report thereon, which appear on page 492. These financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act), Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act.

Our fiscal year ends on March 31 of each year, so all references to a particular Fiscal or fiscal year are to the twelve-month period ended March 31 of that year.

The following 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 the section titled "Risk Factors " on page 40 of this Red Herring Prospectus and elsewhere in this Red Herring Prospectus.

We have included various operational and financial performance indicators in this Red Herring Prospectus, including certain non-GAAP financial measures and operational measures and certain other industry measures related to our operations and financial performance, that may vary from any standard methodology that is applicable across our industry and some of which may not be derived from our Restated Financial Statements or otherwise subjected to an audit or review by our auditors. The manner in which such operational and financial performance indicators, including non-GAAP financial measures, are calculated and presented, and the assumptions and estimates used in such calculation, may vary from that used by other companies. Investors are accordingly cautioned against placing undue reliance on such information in making an investment decision, and should consult their own advisors and evaluate such information in the context of the Restated Financial Statements and other information relating to our business and operations included in this Red Herring Prospectus. For further details on risks related to reliance on non-GAAP financial measures, please see "Risk Factors -We have in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to our operations andfinancial performance. These non-GAAP measures and industry measures may vary from any standard methodology that is applicable across the Indian, and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies on page 100 of this Red Herring Prospectus.

"Industry Report on Food & Grocery Retailing and Food Processing" updated on August 07, 2025 ("D&B Report"), has been exclusively prepared for the purpose of the Offer and issued by D&B and is commissioned and paid for by us, pursuant to an engagement letter executed on February 12, 2024, only for the purposes of understanding the industry exclusively in connection with the Offer. Unless otherwise indicated, all financial, operational, industry and other related information derived from the D&B Report and included herein with respect to any particular year refers to such information for the relevant financial year. The D&B Report will be available on our Companys website at https://patelrpl.in/investor-relationsV.

Some of the information contained in this section, including information with respect to our strategies, contain forward- looking statements that involve risks and uncertainties. You should read the section titled "ForwardLooking Statements" on page 25 of the Red Herring Prospectus for a discussion of the risks and uncertainties related to those statements and also the section titled "Risk Factors " and "Our Business " on pages 40 and 195, respectively, for a discussion of certain factors that may affect our business, results of operations andfinancial condition. The actual results of the Company may differ materially from those expressed in or implied by these forward-looking statements.

Unless otherwise stated, references to "the Company", "our Company", "we", "us", and "our" are to Patel Retail Limited.

Overview

We are primarily engaged as a retail supermarket chain operating in Tier-III cities and the nearby suburban areas, with focus on "value retail", offering food, non-food (FMCG), general merchandise and apparel catering to the needs of the entire family. Incorporated in Fiscal 2008, our Company started its first store under the brand "Patels R Mart" at Ambernath, Maharashtra and since then, our operations are spread across the suburban area of Thane

and Raigad district in Maharashtra. As on May 31, 2025 we operate and manage forty-three (43) stores, with a Retail Business Area²⁷ of approx. 1,78,946 sq.fts.

With our objective to increase margin and to promote our retail supermarket brand "Patels R Mart", we launched our private label goods comprising of pulses ("Patel Fresh") and spices ("Indian Chaska"), which we buy in bulk quantities and package and brand after our quality checks and inspections at our processing and packing facility at Ambernath, Maharashtra ("Facility 1"), mens wear ("Blue Nation"), home improving products ("Patel Essentials"), ready-to-cook / instant mix ("Patel Fresh"), ghee and papad ("Indian Chaska") which we buy from third party vendors under our brands. Since incorporation in Fiscal 2008, we have increased our store offerings and as on May 31, 2025 we offer around 38 product categories with over 10,000 product SKUs in our stores.

As our backward integration strategy and to control our supply chain, we started our production facility at Survey No. 145/1, Bhuj Bachau Highway, Village Dudhai, Taluka Anjar, District Kutch, Gujarat - 370115 ("Facility 2"), where we process peanuts and whole spices, such as coriander seed and cumin seeds. Further as a part of our strategy to broaden our product offering across the value chain, we built an agri processing cluster, spread over 15.925 acres of land area at Survey No. 170/2, Bhuj Bachau Highway, Village Dudhai, Taluka Anjar, District Kutch, Gujarat - 370115, comprising of five (5) production units collectively ("Facility 3"), one (1) fruit pulp processing unit ("F&V Unit"), dry warehouse of 2546.29 sq. mtr. with storage capacity of 3040 MT, cold storage with capacity of 3000 MT and also our in-house testing and research laboratory ("Agri-cluster"). Our Facility 1, Facility 2 and Facility 3 will be hereinafter collectively referred to as "Facilities", our Facility 1, Facility 2 and Agri-cluster will be hereinafter collectively referred to as "Manufacturing Facilities", and Facility 2 and Agricluster will be collectively referred to as "Kutch Facilities"

Further, by capitalizing our sourcing strength we ventured into export of staples, groceries, pulses, spices and pulps. We export these products under our brands- Patel Fresh and Indian Chaska and also that of the brand of our customers, from our Manufacturing Facilities. Furthermore, we also undertake domestic and export trading of assorted / mix containers of food and non-food products, such as FMCG goods, household items, kitchen appliances, etc. from reputed third party brands and also are into bulk trading of agri commodities such as, rice, sugar, pulses, edible oil etc. We have exported to over thirty five (35) countries during the disclosed financial period.

Our business can be categorized (Retail and Non-Retail) as detailed herein below:

For Fiscal 2025, Fiscal 2024 and Fiscal 2023, our total income was Rs.82,599.01 Lakhs, Rs.81,771.25 Lakhs and Rs.1,01,980.36 Lakhs, respectively, and our profit after tax for the year was Rs.2,527.82 lakhs, Rs.2,253.34 lakhs and Rs.1,637.97 Lakhs, respectively. Our EBITDA in Fiscal 2025, Fiscal 2024 and Fiscal 2023 was Rs.6,243.27 Lakhs, Rs.5,583.94 Lakhs and Rs.4,323.96 Lakhs, respectively. In Fiscal 2025, Fiscal 2024 and Fiscal 2023, we generated Rs.27,350.98 Lakhs, Rs.40,651.96 Lakhs and Rs.66,962.58 lakhs from gross export sales (processing plus trading

sales), representing approximately 33.33%, 49.93% and 65.74%, respectively, of our revenue from operations. Principal Factors Affecting our Results of Operations

Our financial performance and results of operations are influenced by a variety of factors, including without limitation, severe weather conditions, global and domestic competition, conditions in the markets of our customers, general economic conditions, change in costs of raw materials and government regulations and policies. Some of the more important factors are discussed below as well as in "RiskFactors" on page 40 of this Red Herring Prospectus.

Availability of Commercial Real Estate

Our ability to increase our sales and our profitability is directly affected by the total number of stores we operate. Most of our stores operate from premises which we have acquired on a leave and license/ leasehold basis. Our average leave and license/ lease period is around five (5) years.

Our ability to continue to secure densely populated residential neighborhood locations is a key factor in our success. As we expand our store network, we will need to secure more locations that meet our business needs whether on an ownership, long-term leasehold or rental basis, as we determine on a case-by-case basis. We have no control over future increases in real estate prices. If real estate prices increase, we will require greater capital to buy land or incur higher operational costs due to higher leasing or rental costs.

If there is limited availability of real estate in the future, competition for such real estate may increase which may result in a further increase in prices. This may lead to delays and cost overruns in opening new stores.

Expansion of our Store Network

Since establishing our Company in Fiscal 2008, we have expanded our network to a total of forty-three (43) stores as of May 31, 2025. We expanded our store network from thirty-three (33) stores in Fiscal 2024 and forty-two (42) stores in Fiscal 2025. As on May 31, 2025, our stores are located across seventeen (17) cities / suburbans areas, within the Thane and Raigad district of Maharashtra. Recently we have opened new Stores in the central suburban area of the MMR such as Bhiwandi, Padgha, Diva, Vasind, Vangani & Neral.We plan to expand our network in Panvel, Vashi and other areas of Navi Mumbai and gradually in the western suburban area of the MMR such as Mira Road, Bhayander, Virar, Vasai and also in the municipal region of Pune, Maharashtra, following our cluster-focused expansion strategy. We believe that selection of suitable locations for our stores has been critical to our expansion plans. We aim to enter our target markets to take advantage of the opportunities offered by these under-served regions and actively search for suitable locations. We follow a cluster approach and target densely- populated neighbourhoods and residential areas with a majority of lower-middle, middle class and aspiring upper- middle class consumers. Our revenue from retail sales increased at a CAGR of 17.64% between Fiscal 2023 and Fiscal 2025 and continued expansion of our store network has been an important factor in contributing to revenue growth.

Furthermore, our revenue growth can vary according to the level of maturity of our stores. The revenue a store generates depends on its stage of operation. Generally, revenue generated by a new store is lower at its initial stage of operations and tends to increase after the first few years of operation as the store gains customer loyalty and market recognition. Following this initial stage, growth in the revenue of a store will also depend on various factors such as the level of customer traffic, quality of store management, extent of redecoration and renovation, and rate of growth in the local economy.

Product Assortment

We offer an extensive range of products in a number of categories at our stores such as, food, non-food (FMCG), general merchandise and apparel. We strive to provide products at value for money for our customers and to respond to their needs and tastes by optimising the range of products we offer, in order to attract and maintain a large base of customers. We focus on providing our customers with basic, everyday products rather than luxury products or those which require discretionary spending. Our success in part depends upon our continued ability to understand evolving customer trends and accordingly achieving the correct product assortment. We will continue to manage the changing requirements of our customers by changing our product assortment, as necessary. Changes in the assortment of products we sell can impact our sales and operating profit and our profit margins also may vary across different product categories and different product sub-categories within each category.

Further, the key driver in the growth of our revenue from manufacturing operations has been the volume of products we produce and sell. Increased production and sales volume favourably affect our results of operations as it enables us to benefit from economies of scale in procurement of raw materials and may improve our operating margins through our ability to leverage our fixed cost base. Our Manufacturing Facilities are relatively new and are yet to reach maximum production, we endeavour to increase our sales by adding new products and increasing our market presence.

Cost and Availability of Raw Materials

Our material costs constitute the largest component of our cost structure. Our material costs comprise cost of materials consumed, purchases of stock-in-trade and changes in inventories. For the Fiscal 2025, Fiscal 2024 and Fiscal 2023, our material costs were Rs.66,130.83 Lakhs, Rs.65,889.50 Lakhs and Rs.86,019.61 Lakhs, or 80.06%, 80.58% and 84.35% of our total income, respectively. We are thus exposed to fluctuations in cost and availability of our raw materials and there may be a time lag before we may effectively pass on all increases in cost of raw materials to our customers. Our ability to pass on the increases in cost of raw materials to our customers is also subject to prevailing market conditions. If we fail to pass on the increases in cost of raw materials, our margins, sales and overall results may be negatively affected. For further details, please see "Risk Factors- Our operations are dependent on the supply of large amounts of raw material such as wheat, spices and peanuts. We do not have long term agreements with suppliers for our raw materials and any increase in the cost of, or a shortfall in the availability of, such raw materials could have an adverse effect on our business and results of operations, and seasonable variations could also result in fluctuations in our results of operations " on page 45 of this Red Herring Prospectus.

Foreign exchange rate risk

Our financial statements are prepared in Indian Rupees. However, our sales from exports and a portion of our raw material expenditures are denominated in foreign currencies, mostly the U.S. Dollar. Accordingly, we have currency exposures relating to buying, selling and financing in currencies other than in Indian Rupees, particularly the U.S. Dollar. The following table sets out our revenues denominated in foreign currencies and their percentage in comparison with revenue from operations for the Fiscal 2025, Fiscal 2024 and Fiscal 2023:

Revenues			(Rs. in Lakhs, except percentage)
Revenue from Export*	27,350.98	40,651.96	66,962.58
Percentage of Revenue from operations	33.33%	49.93%	65.74%
Import of raw materials	912.65	3,757.38	-
Percentage of Revenue from operations	1.11%	4.61%	-
Revenue from Operations	82,069.29	81,418.83	1,01,854.78

*gross of discount, claims and provisions

Our revenue and profit are affected by volatility in the currencies in which we earn our revenues. Our results of operations will be impacted by the relative value of the rupee compared to other currencies. Unfavourable fluctuations in foreign currency exchange rates have had an adverse effect and could in the future have a material adverse effect, on our results of operations. To manage our foreign exchange risk, we hedge our foreign exchange exposure. Our Company has hedged its foreign currency risk and the forward contract cover position as on March 31, 2025 is Nil, against total foreign currency receivable of Rs.9,928.83 Lakhs (equivalent to US Dollar 113.95 Lakhs, AUD 2.78 Lakhs, CAD 0.39 Lakhs, GBP 0.06 Lakhs).

For the Fiscal 2025 and Fiscal 2024, we have recorded foreign exchange fluctuation gain of Rs.402.60 Lakhs and Rs.257.23 Lakhs, respectively, while we have recorded foreign currency loss of Rs.328.62 Lakhs for Fiscal 2023. There can be no assurance that we will continue to record gains from foreign exchange fluctuations or any hedging measures we take will enable us to avoid the effect of any adverse fluctuations in the value of the Indian Rupee against the U.S. Dollar or other foreign currencies.

Reliance on major customers

Our customer base under our processing division and our trading activities currently comprises a host of international and domestic customers. However, our top five (5) customers represent a significant portion of our revenue. Of our revenue from operations in the Fiscal 2025, Fiscal 2024 and Fiscal 2023, our largest customer contributed approximately 3.52%, 5.66% and 6.02% of our revenue from operations, respectively; our top 5 customers contributed to approximately 10.30%, 16.01% and 21.59% of our revenue from operations, respectively; and our top 10 customers contributed 15.67%, 24.07% and 32.21% of our revenue from operations, respectively. We expect that we will continue to be reliant on our major customers for the foreseeable future. We have long-term relationships and ongoing active engagements with many of our customers. For instance, our top 5 customers from Non-Retail business, as on March 31, 2025 are associated with us for over two (2) years. Accordingly, any decrease in orders from any of these select customers and/or failure to retain such customers on terms that are commercially viable could adversely affect our business, financial condition and results of operations. In addition, any defaults or delays in payments by a major customer or a significant portion of our customers may have an adverse effect on business, financial condition and results of operations. We do not have any supply contracts with our customers.

Competition and Pricing Pressure

We are facing increasing competition from a number of domestic and international market players in each of the businesses we operate. Some of our competitors may be larger than us, may have more financial and other resources and have products with greater brand recognition than ours. Our competitors in certain regions may also have better access to raw materials required in our operations and may procure them at lower costs than us. Some of our international competitors may be able to capitalize on their overseas experience to compete in the Indian market and also in the markets we operate. They may also significantly increase their advertising expenses to promote their brands and products, which may require us to similarly increase our advertising and marketing expenses.

The success of our business is dependent on our ability to competitively price our products, and to also compete against lower-priced products from our competitors based on the higher quality of our products. Our pricing policy is based on several factors including the cost of operations and raw material, customer demands, our competitive position and the pricing of certain products in the markets. We seek to offset the effect of this pricing pressure by increasing the efficiency of our manufacturing operations at our facilities.

Distribution Network

Our processing business is relatively new and our growth in this business will be largely driven by the distribution network that we would create for distribution of our products in India. We have built a network of wholesalers and retail touch points to whom we sell through our wholesalers and also directly through our sales and marketing team. Further, we also undertake domestic trading through our network of wholesalers and retailers.

We sell our products across nine (9) states with the majority of our sales coming from the state of Gujarat and Maharashtra. Our network of wholesalers and retailers with whom we have had business during the respective year is as detailed herein below:

Particulars*	Fiscal 2025	Fiscal 2024	Fiscal 2023
Wholesalers	234	238	199
- Gujarat	143	154	109
- Maharashtra	53	61	67
- Others	38	23	23
Retailers	72	202	329
- Gujarat	65	198	327
- Maharashtra	6	3	2
- Others	1	1	-

* The number of wholesalers and retailers represent those parties with whom we had business transactions during the period.

As of May 31, 2025 we have a two (2) member sales team to cater to our existing and potential customer. We constantly seek to grow our product reach to under-penetrated geographies, increase the penetration of our products in markets in which we are currently present and widen the portfolio of our products available in those markets by growing our distribution network. We may, however, not be successful in appointing new distributors / wholesalers to expand our network or effectively manage our existing distribution network. Further, we may also face disruptions in the delivery of our products for reasons beyond our control, including poor handling of

our products by third parties, transportation bottlenecks, natural disasters and labour issues, which could lead to delayed or lost deliveries.

Government Regulations and Policies

Government regulations and policies in India and in countries to which we export can affect the demand for our products. These regulations and policies are extensive and cover a broad range of industries, some of which are politically sensitive. These regulations and policies and the tax regimes to which we are subject to could change at any time, with little or no warning or time for us to prepare. For further details, please see "Risk Factors - Our business is operating under various laws which require us to obtain approvals from the concerned statutory/ regulatory authorities in the ordinary course of business. Some of our approvals are required to be transferred in the name of Patel Retail Limited from Patel Retail Private Limited, pursuant to change of name of our Company. Our inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals for our business operations in a timely manner could materially and adversely affect our business, prospects, results of operations and financial condition " on page 44 of this Red Herring Prospectus and Any inability to comply with food safety laws, environmental laws and other applicable regulations in relation to our manufacturing facilities and stores may adversely affect our business, financial condition and results of operations" on page 77 of this Red Herring Prospectus.

We are currently entitled to certain export benefits received from the Government of India under export promotion schemes like the Duty Drawback Scheme ("DDS") and the Remission of Duties or Taxes on Export Products ("RODTEP"). The DDS and the RODTEP, enable us to claim rebate of all hidden central, state and local duties /taxes/levies on the goods exported which have not been refunded under any other existing scheme. Changes in regulations or withdrawal of such incentives and schemes could impact our revenues. We are also subject to the regulatory framework of the various international markets where we export our products. The markets where we export our products to, may become inaccessible or less accessible as a result of trade embargoes, import restrictions, quotas, anti-dumping duties, tariffs or other forms of trade barriers introduced by countries where we export our products.

Further, export and import of agricultural products is closely monitored and regulated by Ministry of Commerce, GoI such as ban on export or import of agricultural products, imports quota on warehousing, etc. considering factors such as domestic crops, demand and supply gap, etc. For instance, the Ministry of Commerce, GoI has restricted export of sugar and wheat flour. Additionally, import of wheat is subject to condition that wheat flour is exported. These conditions / restrictions are imposed periodically and from time to time by the Government. Please see "Risk Factors- Failure to comply with export obligation may expose us to significant import duties and other penalties" on page 95 of this Red Herring Prospectus.

Transition from Indian GAAP to Ind AS

The Ministry of Corporate Affairs, Government of India, has through a notification dated February 16, 2015, set out the Ind AS and the timelines for their implementation and applicability. As per the requirement of the SEBI, our Company is required to adopt and prepare its financial statements in accordance with Ind AS for periods beginning on or after April 1, 2020. Given that Ind AS differs in certain material aspects from Indian GAAP under which our financial statements are currently prepared, our financial statements for the periods commencing on or after April 1, 2020 may not be fully comparable to our statutory historical financial statements.

We have quantified the impact of IND-AS on the financial data included in this Red Herring Prospectus and have provided a reconciliation of the financial statements to those under Ind AS. (Refer note no. 48 of the restated financial statements.

Significant Accounting Policies

The notes to the Restated Summary Statements included in this Red Herring Prospectus contain a summary of our significant accounting policies. Set forth below is a summary of our most significant accounting policies adopted in preparation of the Restated Summary Statements.

(a) Basis of preparation

(i) Statement of compliance:

"The Restated Balance Sheets of the company as at 31 March 2025, 31 March 2024 and 31 March 2023; the related Restated Statement of Profit and Loss (including Other Comprehensive Income), the Restated Statement of Changes in Equity, and the Restated Statement of Cash Flows for the year ended 31 March 2025, year ended 31 March 2024 and 31 March 2023 and the Significant accounting policies have been extracted by the management from the audited financial statements for the year ended March 31, 2025, March 31, 2024 and March 31, 2023, approved by the respective Board of Directors of the companies.

The financial statements Complies in all material aspects with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended and notified under Section 133 of the Companies Act, 2013 (the "Act") and other relevant provisions of the Act and other accounting principles generally accepted in India.

The Restated Financial Statements were approved by the Board of Directors of our Company on June 16, 2025.

These financial statements are presented in Indian Rupees (INR), which is also the functional currency. All the amounts have been rounded off to the nearest Lakhs, unless otherwise indicated.

(ii) Basis of measurement:

"The Restated Financial Statements have been prepared on accrual and going concern basis. The accounting policies are applied consistently to all the periods presented in the Restated Financial Statements except where a newly issued accounting standard is initially adopted or revision to an existing accounting standard where a change in accounting policy hitherto in use. The Restated Financial Statements have been prepared under the historical cost convention except for certain financial instruments measured at fair value as explained in the accounting policies. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services at the time of their acquisition. "

(b) Current vs non-current classification:

"The Company presents assets and liabilities in the balance sheet based on current / non-current classification.

An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle. "

(c) Use of estimates and judgements:

"The preparation of financial statements requires management to make judgments, estimates and assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Continuous evaluation is done on the estimation and judgments based on historical experience and other factors, including expectations of future events that are believed to be reasonable. Revisions to accounting estimates are recognised prospectively. "

(d) Financial Instruments:

"A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(I) Financial Asset

(i) Classification

The Company classifies its financial assets in the following measurement categories:

(a) Those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss); and

(b) Those measured at amortised cost.

The classification depends on the entitys business model for managing the financial assets and the contractual terms of the cash flows.

(a) For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income.

(b) For investments in debt instruments, this will depend on the business model in which the investment is held.

(c) For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.

The Company reclassifies debt investments when and only when its business model for managing those assets changes.

(ii) Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not measured at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs offinancial assets carried at fair value through profit or loss are expensed in profit or loss.

(a) Debt instruments

Subsequent measurement of debt instruments depends on the Companys business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments:

Amortised cost: Assets that are heldfor collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is included in other income using the effective interest rate method.

Fair value through other comprehensive income (FVOCI): Assets that are heldfor collection of contractual cash flows and for selling the financial assets, where the assets cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognised in profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other income or other expenses (as applicable). Interest income from these financial assets is included in other income using the effective interest rate method.

Fair value through profit or loss (FVTPL): Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognised in profit or loss and presented net in the statement of profit and loss within other income or other expenses (as applicable) in the period in which it arises. Interest income from these financial assets is included in other income or other expenses, as applicable.

(b) Equity instruments

The Company subsequently measures all equity investments at fair value. Where the Companys management has selected to present fair value gains and losses on equity investments in other comprehensive income and there is no subsequent reclassification offair value gains and losses to profit or loss. Dividends from such investments are recognised in profit or loss as other income when the Companys right to receive payments is established.

Changes in the fair value of financial assets atfair value through profit or loss are recognised in other income or other expenses, as applicable in the statement of profit and loss. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value.

(iii) Impairment of financial assets

"The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime credit losses (ECL) to be recognisedfrom initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates are analysed."

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

(iv) Derecognition of financial assets

(a) The Company has transferred the rights to receive cash flows from the financial asset or

(b) Retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.

Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

(II) Financial Liabilities

(i) Measurement

Financial liabilities are initially recognised at fair value, reduced by transaction costs (in case offinancial liability not atfair value through profit or loss), that are directly attributable to the issue of financial liability. After initial recognition, financial liabilities are measured at amortised cost using effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash outflow (including all fees paid, transaction cost, and other premiums or discounts) through the expected life of the financial liability, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. At the time of initial recognition, there is no financial liability irrevocably designated as measured at fair value through profit or loss.

(ii) Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

(e) Inventories Valuation

(i) Raw materials, components, stores & spares, packing material, semi-finished goods & finished goods are valued at lower of cost and net realisable value

(ii) Cost of Raw Materials, components, stores & spares and packing material is arrived at Weighted Average Cost and Cost of semi-finished good and finished good comprises, raw materials, direct labour, other direct costs and related production overheads is arrived through Weighted Average Cost.

(iii) Scrap is valued at net realisable value.

(iv) Due allowances are made in respect of slow moving, non-moving and obsolete inventories based on estimate made by the Management.

f) Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are inclusive of excise duty and net of returns, trade discount taxes and amounts collected on behalf of third parties. Discount is recognised on cash basis in accordance with the contractual term of the agreement with the customers. The Company recognises revenue as under:

"(i) The Company recognizes revenue from sale of goods when:"

"(a) The significant risks and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract, which coincides with the delivery of goods. "

(b) The Company retains neither continuing managerial involvement to the degree usually associated with the ownership nor effective control over the goods sold.

(c) The amount of revenue can be reliably measured.

(d) It is probable that future economic benefits associated with the transaction will flow to the Company.

(e) The cost incurred or to be incurred in respect of the transaction can be measured reliably.

f) The company bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

Interest on deployment of funds is recognised on accrual basis. Dividend income is recognised when right to receive dividend is established. Profit on sale of investments is recognised on sale of investments.

(g) Property, plant and equipment

(i) Recognition and measurement

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment recognised as at 1 April 2020 measured as per the previous GAAP and used those carrying value as the deemed cost of the property, plant and equipment.

Freehold land is carried at historical cost. All other items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. The cost of an item ofproperty, plant and equipment shall be recognised as an asset if, and only if it is probable thatfuture economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. Any gain or loss on disposal of an item ofproperty, plant and equipment is recognised in profit or loss. The cost of an item of property, plant and equipment comprises:

"a) its purchase price, including import duties and non-refundable taxes (net of GST), after deducting trade discounts and rebates.

b) any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

c) borrowing costs for long-term construction projects if the recognition criteria are met.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) ofproperty, plant and equipment. "

Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under other non-current assets and the cost of assets not ready to use before such date are disclosed under ‘Capital work-in-progress .

(ii) Subsequent expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably. Repairs and maintenance costs are recognized in the Statement of Profit and Loss when incurred.

(iii) Depreciation

Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual values, if any, over their estimated useful lives using the Reduced Balance method in the manner and at the rates prescribed by Part ‘C of Schedule II of the Act, except as stated below. Depreciation on additions/(disposals) is provided on a pro-rata basis i. e. from/ (upto) the date on which asset is ready for use / disposed off.

The estimated useful lives of assets are as taken as per Companies Act, 2013

(h) Intangible assets

On transition to Ind AS, The Company has elected to continue with the carrying value of all of its intangible assets recognised as at 1 April 2020 measured as per the previous GAAP and used those carrying value as the deemed cost of the intangible assets.

(i) An intangible asset shall be recognised if, and only if: (a) it is probable that the expected future economic benefits that are attributable to the asset will flow to the Company and (b) the cost of the asset can be measured reliably.

(iii) Computer software is capitalised where it is expected to provide future enduring economic benefits. Capitalisation costs include licence fees and costs of implementation / system integration services. The costs are capitalised in the year in which the relevant software is implemented for use. The same is amortised over a period of 5 years on straight-line method.

(i) Leases

"Company as lessee:

Lease under which the Company assumes substantially all the risks and rewards of ownership are classified as Finance Leases. The leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items, are classified as operating lease. Operating lease payments are recognised as expenses in the Statement of Profit and Loss. "

(j) Employee Benefit

(i) Defined Contribution Plan

Contribution to defined contribution plans are recognised as expense in the Statement of Profit and Loss, as they are incurred.

(ii) Defined Benefit Plan

Companys liabilities towards gratuity and leave encashment are determined using the projected unit credit method as at Balance Sheet date. Actuarial gains / losses are recognised immediately in the Statement of Profit and Loss.

(k) Foreign currency translation

(i) Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (‘the functional currency ). The financial statements are presented in Indian rupee (INR), which is Companys functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in profit or loss. All the foreign exchange gains and losses are presented in the statement of Profit and Loss on a net basis within other expenses or other income as applicable.

(l) Borrowing cost

Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing offunds. Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period of time to get ready for their intended use are capitalised as part of the cost of that asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.

(i) Commencement of capitalisation

"Capitalisation of borrowing cost as part of the cost of a qualifying asset shall begin on the commencement date. The commencement date for capitalisation is the date when the entity first meets all of the following conditions:

a. it incurs expenditures for the asset;

b. it incurs borrowing costs; and

c. it undertakes activities that are necessary to prepare the asset for its intended use or sale. "

(ii) Cessation of capitalisation

"Cessation of capitalisation shall happen when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete.

Other borrowing costs are recognised as an expense in the period in which they are incurred. "

Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the Company; and

- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year.

ii) Diluted earnings per share

Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take into account:

- the after income tax effect of interest and other financing costs associated with dilutive potential equity shares; and

- the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

(n) Impairment of Assets

Intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the assets carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an assets fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are Companyed at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or Companys of assets (cash-generating units). Non financial assets that suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

(0) Provisions, contingent liabilities and contingent assets

(1) Provisions:

" Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of profit and loss."

(ii) Contingent liabilities:

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognise a contingent liability but discloses its existence in the financial statements.

(iii) Contingent Assets:

Contingent Assets are disclosed, where an inflow of economic benefits is probable.

(p) Investments

On transition to Ind AS, equity investments are measured at fair value, with value changes recognised in Other Comprehensive Income, except for those mutual fund for which the Company has elected to present the fair value changes in the Statement of Profit and Loss.

(q) Trade receivables

Trade receivables are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.

(r) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. Trade and other payables are recognised, initially at fair value, and subsequently measured at amortised cost using effective interest rate method.

(f) Operating Cycle

Based on the nature ofproducts/activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

(t) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Rupees Lakhs (upto two decimals), unless otherwise stated as per the requirement of Schedule III (Division II).

(u) "Government Grants, subsidies and export incentives"

Government grants and subsidies are accounted when there is reasonable assurance that the Company will comply with the conditions attached to them and it is reasonably certain that the ultimate collection will be made. Capital grants relating to specific fixed assets are reduced from the gross value of the respective fixed assets. Revenue grants are recognised in the Statement of Profit and Loss. Export benefits available under prevalent schemes are accrued in the year in which the goods are exported and there is no uncertainty in receiving the same.

(v) Segment reporting

Operating segment are reported in a manner consistent with the internal reporting provided to the Chief operating decision maker (CODM). Identification of segments: In accordance with Ind As 108 "operating segment", the operating segment used to present segment information reviewed by CODM to allocate resources to the segments and assess their performance. An operating segment is a component of the group that engages in the business activities from which it earns revenues and incurs expenses, including revenues and expenses that relate to transactions with any of the groups other components.

(w) Dividend

The Company recognises a liability for any dividend declared but not distributed at the end of the reporting period, when the distribution is authorised and the distribution is no longer at the discretion of the Company on or before the end of the reporting period. As per Corporate laws in India, a distribution in the nature of final dividend is authorized when it is approved by the shareholders. A corresponding amount is recognized directly in equity.

(x) Income tax

Tax expense comprise of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act.

Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

At each balance sheet date unrecognized deferred tax assets are re-assessed. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(y) Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into cash and have original maturities of three months or less from date ofpurchase to be cash equivalents.

(z) Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjustedfor the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

(aa) Interest income

Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses.

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Total Income	82,599.01	81,771.25	1,01,980.36
Revenue from Operations	82,069.29	81,418.83	1,01,854.78
EBITDA(1)	6,243.27	5,583.94	4,323.96
EBITDA Margin12	7.61%	6.86%	4.25%
PAT Margin2	3.08%	2.77%	1.61%
Net Worth(4)	13,290.01	9,297.52	6,923.12
ROE(5)	19.02%	24.24%	23.66%
Capital Employed2	31,465.58	27,989.71	25,385.68
ROCE(7)	14.43%	15.10%	12.66%
Debt(8)	18,053.70	18,575.03	18,281.39
Net Debt(9)	17,015.88	18,402.49	18,054.07
Debt-Equity Ratio(10)	1.34	1.97	2.54
Net Debt-EBITDA Ratio2)	2.73	3.30	4.18
Net Tangible Assets(12)	13,085.89	9,098.69	6,752.58
Monetary Assets(13)	282.20	293.26	264.62
% of Monetary Assets to Net Tangible Assets(14)	2.13%	3.22%	3.92%
Adjusted Net Asset Value per Equity Share(15)	53.41	38.13	28.39

(1 EBITDA is calculated as the sum of (i) profit before tax and prior period items for the period/year, (ii) depreciation and amortization expenses, and (iii) finance costs.

(2 EBITDA Margin is calculated as EBITDA divided by revenue from operations.

(3 PAT Margin is calculated as profit for the period/year divided by revenue from operations.

(4 Net worth attributable to the Equity Shareholders of our Company has been defined as the aggregate value of the paid-up equity share capital and all reserves created out of the profits and securities premium account and debit or credit balance of profit and loss account, after deducting, if any the aggregate value of the accumulated losses, prepaid expenses, deferred expenditure and miscellaneous expenditure not written off as per the Restated Financial Statement, but does not include reserves created out of revaluation of assets and write-back of depreciation, if any as on March 31, 2023, March 31, 2024 and March 31, 2025 in accordance with Regulation 2(l)(hh) of the SEBIICDR Regulations, as amended. It also excludes OCI, NCI and deeply subordinate debt, as applicable.

(5) Return on Equity (%) refers to restated profit after tax divided by Net worth attributable to the Equity Shareholders of our Company for the year/period. Restated profit after tax means restated profit / (loss) for the period/year as appearing in the Restated Financial Information.

(6 Capital Employed is calculated as total equity plus total borrowings plus total lease liabilities and deferred tax liabilities(net) minus deferred tax assets (net).

(7 Return on Capital Employed is calculated as adjusted EBITDA less depreciation and amortisation divided by Capital Employed.

Adjusted EBITDA is calculated as EBITDA less other income.

(8 Debt is calculated as the sum of current borrowings and non-current borrowings.

(9 Net Debt is calculated as Debt plus lease liabilities less cash & cash equivalents.

(10) Debt-Equity Ratio is calculated as Debt divided by Net worth attributable to the Equity Shareholders of our Company.

(11 Net Debt-EBITDA Ratio is calculated as Net Debt divided by EBITDA.

(12 Net Tangible Assets is calculated as the sum of all the net assets of our Company excluding, right of use assets, other intangible assets, deferred tax liabilities and prepaid expenses

(13) Monetary Assets is calculated as cash and cash equivalents and bank balances less fixed deposits held as margin money.

(144 % of Monetary Assets to Net Tangible Assets is calculated as Monetary Assets divided by Net Tangible Assets, expressed as a

percentage.

(15) Net Asset Value per Equity Share is calculated as Net worth attributable to the Equity Shareholders of our Company as at the end of Fiscal divided by the number of Equity Shares used in calculating basic earnings per share.

EBITDA, EBITDA Margin, PAT Margin and ROE

The following table sets forth our EBITDA, EBITDA Margin, PAT Margin and ROE, including a reconciliation of (i) EBITDA and EBITDA Margin to our restated profits/losses before tax and prior period items, and (ii) PAT Margin and ROE to our restated profits/losses, in each of the Fiscal 2023, Fiscal 2024 and Fiscal 2025.

		(Z in Lakhs, ex	cept percentages)
Revenue from Operations (A)	82,069.29	81,418.83	1,01,854.78
Profit before tax and prior period items (B)	3,432.80	3,061.18	2,224.73
Add: Finance costs (C)	1,637.97	1,518.82	1,113.45

 

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Add: Depreciation and amortization expenses (D)	1,172.50	1,003.95	985.78
EBITDA (E=B+C+D)	6,243.27	5,583.94	4,323.96
EBITDA Margin (F=E/A)	7.61%	6.86%	4.25%
Profit for the period (G)	2,527.81	2,253.34	1,637.97
Net worth attributable to the Equity Shareholders of our Company (H)	13,290.01	9,297.52	6,923.12
PAT Margin (I=G/A)	3.08%	2.77%	1.61%
ROE (J=G/H)	19.02%	24.24%	23.66%

Capital Employed and Return on Capital Employed (ROCE)

The following table sets forth our Capital Employed and Return on Capital Employed (ROCE), including a reconciliation of ROCE to our restated profits/losses before tax and prior period items in each of the Fiscal 2025, Fiscal 2024 and Fiscal 2023.

	(Rs. in Lakhs, except percentages)
Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Profit before tax and prior period items (A)	3,432.80	3,061.18	2,224.73
Add: Finance costs (B)	1,637.97	1,518.82	1,113.45
Less: Other income (C)	529.72	352.42	125.58
EBIT (D=A+B-C)	4,541.05	4,227.58	3,212.60
Total equity (E)	13,457.44	9,440.33	7,186.92
Non-current borrowings (F)	2,015.87	2,685.82	3,527.06
Current borrowings (G)	16,037.83	15,889.21	14,754.33
Total Lease Liabilities (H)	200.96	190.16	103.53
Deferred Tax Liabilities (net) (I)	-	-	-
Deferred Tax Assets (net) (J)	246.52	215.81	186.16
Capital Employed (K=E+F+G+H+I-J)	31,465.58	27,989.71	25,385.68
ROCE (L=D/K)	14.43%	15.10%	12.66%

Debt, Net Debt, Debt-Equity Ratio and Net Debt-EBITDA Ratio

The following table sets forth our Debt, Net Debt, Debt-Equity Ratio and Net Debt-EBITDA Ratio as at the Fiscal 2025 Fiscal 2024 and Fiscal 2023

	(Rs. in Rs. Lakhs, except ratios)
Non-current borrowings (A)	2,015.87	2,685.82	3,527.06
Current borrowings (B)	16,037.83	15,889.21	14,754.33
Debt (C=A+B)	18,053.70	18,575.03	18,281.39
Total equity (D)	13,457.44	9,440.33	7,186.92
Debt-Equity Ratio (E=C/D)	1.34	1.97	2.54
Non-current and Current borrowings (F)	18,053.70	18,575.03	18,281.39
Total Lease Liabilities (G)	200.96	190.16	103.53
Total liabilities (H=F+G)	18,254.66	18,765.19	18,384.92
Less: cash and cash equivalents and bank balances (I)	1,238.78	362.70	330.85
Net Debt (J=H-I)	17,015.88	18,402.49	18,054.07
EBITDA (K)	6,243.27	5,583.94	4,323.96
Net Debt-EBITDA Ratio (L=J/K)	2.73	3.30	4.18

Net Tangible Assets, Monetary Assets, % of Monetary Assets to Net Tangible Assets, Net Worth, Return on Net Worth, Pre-Tax Operating Profit and Net Asset Value per Equity Share

Our Net Tangible Assets, Monetary Assets, % of Monetary Assets to Net Tangible Assets, Net Worth, Return on Net Worth, Pre-Tax Operating Profit and Net Asset Value per Equity Share, including a reconciliation to our Restated Financial Information for the three Financial Years ended on March 31, 2025, 2024 and 2023 are set forth below:

	(Rs. in Lakhs, except as provided)
Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Total assets (A)	38,286.35	33,301.72	30,311.99
Less: Other intangible assets (B)	12.01	13.70	71.10
Less: Right of use of assets (C)	192.10	185.13	99.44
Less: Prepaid expenses (D)	167.43	142.81	263.80
Less: Total liabilities (E)	24,828.92	23,861.39	23,125.07
Net Tangible Assets (F=A-B-C-D-E)	13,085.89	9,098.69	6,752.58
Cash and cash equivalents and bank balances (G)	274.61	293.26	264.62
Add: Other bank balances (H)	71.69	69.44	66.23
Less: Bank deposits with remaining maturity of more than 12 months (I)	-	-	-
Less: Fixed deposits held as margin money (J)	64.10	69.44	66.23
Monetary Assets (K=G+H-I-J)	282.20	293.26	264.62
% of Monetary Assets to Net Tangible Assets (L=(K/F)*100)) (in %)	2.16%	3.22%	3.92%
Net Worth attributable to Equity Shareholders (M)	13,290.01	9,297.52	6,923.12
Issued subscribed and fully paid-up equity share capital (N)	2,488.25	2,438.25	380.98
General reserve (O)	-	-	-
Securities premium reserve (P)	1450.00	-	969.02
Retained earnings and legal reserves (Q)	9,519.19	7,002.08	5,836.92
Less: Pre-paid expenses (R)	167.43	142.81	263.80
Profit for the year/period attributable to Equity Shareholders of the Company (S)	2,527.81	2,253.34	1,637.97
Return on Net Worth attributable to Equity Shareholders of the Company (T=S/M) (in %)	19.02%	24.24%	23.66%
Profit before tax and prior period items (U)	3,432.80	3,061.18	2,224.73
Less: Other income (V)	529.72	352.42	125.58
Add: Finance costs (W)	1,637.97	1,518.82	1,113.45
Pre-Tax Operating Profit (X=U-V+W)	4,541.05	4,227.58	3,212.60
Number of equity shares outstanding at the end of the period / year, before adjustment of bonus issue (Y) (number in Lakhs)	248.83	243.83	38.10
Effect of dilutive potential equity shares	-	-	-
Number of equity shares outstanding at the end of the period / year, after adjustment of bonus issue (Z) (number in Lakhs)	248.83	243.83	243.83
Adjusted Net Asset Value per Equity Share (basic and diluted) (AA=M/Z) (in Rs.)*	53.41	38.13	28.39

Key Components of our Statement of Profit and Loss

The following descriptions set forth information with respect to the key components of our profit and loss statements.

Revenue

Total income consists of revenue from operations and other income.

Revenue from operations: Revenue from operations comprises revenue from sale of products, and other operating revenue. Other operating revenue includes, export benefit, display & listing income and miscellaneous operating income.

Other income: Other income comprises of interest income, rent income, foreign exchange fluctuation gain and

other non-operating income. Interest income primarily relates to interest income earned on bank deposits and financial assets (at amortized cost). Other non-operating income primarily relates to, profit on sale of fixed assets, miscellaneous income.

Expenses

Expenses consist of cost of materials consumed, purchase of stock-in-trade, changes in inventories of finished goods, employee benefits expense, finance costs, depreciation and amortization expense and other expenses.

Cost of materials consumed: Cost of materials consumed comprises of purchase of raw materials and changes in opening and closing inventories of raw materials.

Purchase of stock-in-trade: Purchase of stock-in-trade comprises of purchases of retail store merchandise and traded goods.

Changes in inventories of finished goods and stock in trade: Changes in inventories of finished goods comprise net (increase)/decrease in inventories of finished goods and stock in trade.

Employee benefit expenses: Employee benefit expenses comprises salaries, wages and bonus, contribution to provident and other funds, gratuity, staff welfare expenses, employee medical insurance expenses and other employee related expenses. Further, employee benefit expenses also include contract labour expenses.

Finance costs: Finance costs comprises interest expenses on term loan, cash credit, packing credit loan, stand by letter of credit (SLC), car loans, other unsecured loans from directors and interest on lease liability. Loan processing fees consist of bank charges, professional fees and others.

Depreciation and amortization expenses: Depreciation and amortization expenses comprises depreciation of tangible assets including our plant and machinery, building, furniture and fixture, vehicles, computer, electrical equipments, office equipments and amortization of intangible assets including computer software and trademark.

Other expenses: Other expenses comprise primarily of labour charges, consumption of consumables, stores & spares, power, fuel and water charges, job work charges, laboratory expenses, amongst others. The largest components of expenses under the head selling and administration expenses include export expenses, freight outward, forex fluctuations, legal and professional expenses, advertisement & business promotion, vehicle expenses, corporate social responsibility expenditure and miscellaneous expenses. Other components of other expenses include rent, expenses relating to the repair and maintenance of machinery, building and others, insurance, payments to auditors, loss on sale of fixed assets, donation, loss on forward contracts and other expenses.

Tax Expense

Tax expense consists of current tax, deferred tax and adjustment of tax relating to earlier periods.

Our Results of Operations

The following tables set forth our selected financial data from our Restated Financial Statement of profit and loss for the Fiscal 2025, Fiscal 2024 and Fiscal 2023 the components of which are also expressed as a percentage of total income for such years/periods:

Particulars	Fiscal 2025		Fiscal 2024		Fiscal 2023
	Amount ( Rs. in lakhs)	%	Amount ( Rs. in lakhs)	%	Amount ( Rs. in lakhs)	%
Revenue from operations	82,069.29	99.36%	81,418.83	99.57%	1,01,854.78	99.88%
Other income	529.72	0.64%	352.42	0.43%	125.58	0.12%
Total Income	82,599.01	100.00%	81,771.25	100.00%	1,01,980.36	100.00%
Cost of materials consumed	35,243.56	42.67%	38,415.32	46.98%	32,407.46	31.78%
Purchases of Stock-In-trade	32,950.20	39.89%	30,418.32	37.20%	55,451.87	54.38%
Changes in inventories oi finished goods	(2,062.92)	(2.50%)	(2,944.14)	(3.60%)	(1,839.72)	(1.80%)

 

Particulars	Fiscal 2025		Fiscal 2024		Fiscal 2023
	Amount ( Rs. in lakhs)	%	Amount ( Rs. in lakhs)	%	Amount ( Rs. in lakhs)	%
Employee benefits expense	3,170.96	3.84%	2,717.83	3.32%	2,264.15	2.22%
Finance costs	1,637.97	1.98%	1,518.82	1.86%	1,113.45	1.09%
Depreciation and amortization expenses	1,172.50	1.42%	1,003.95	1.23%	985.78	0.97%
Other expenses	7,053.94	8.54%	7,579.97	9.27%	9,372.63	9.19%
Total expenses	79,166.21	95.84%	78,710.07	96.26%	99,755.63	97.82%
Profit before exceptional item and tax	3,432.80	4.16%	3,061.18	3.74%	2,224.73	2.18%
Exceptional items	-				-	-
Profit Before Tax	3,432.80	4.16%	3,061.18	3.74%	2,224.73	2.18%
Current tax	928.70	1.12%	837.57	1.02%	591.18	0.58%
Earlier years	3.39	Negligible	(0.06)	Negligible	(1.06)	Negligible
Deferred tax	(27.10)	(0.03%)	(29.67)	(0.04%)	(3.37)	Negligible
Total tax expenses	904.99	1.10%	807.83	0.99%	586.75	0.58%
Profit for the year	2,527.81	3.06%	2,253.34	2.76%	1,637.97	1.61%

Financial Year 2025 compared to Financial Year 2024

Particulars	Fiscal 2025	Fiscal 2024	%
	Amount ( Rs. in lakhs)	Amount ( Rs. in lakhs)	Change
Revenue from operations	82,069.29	81,418.83	0.80%
Other income	529.72	352.42	50.31%
Total Income	82,599.01	81,771.25	1.01%
Cost of materials consumed	35,243.56	38,415.32	(8.26%)
Purchases of Stock-In-trade	32,950.20	30,418.32	8.32%
Changes in inventories of finished goods	(2,062.92)	(2,944.14)	(29.93%)
Employee benefits expense	3,170.96	2,717.83	16.67%
Finance costs	1,637.97	1,518.82	7.84%
Depreciation and amortization expenses	1,172.50	1,003.95	16.79%
Other expenses	7,053.94	7,579.97	(6.94%)
Total expenses	79,166.21	78,710.07	0.58%
Profit before exceptional item and tax	3,432.80	3,061.18	12.14%
Exceptional items	-	-	-
Profit Before Tax	3,432.80	3,061.18	12.14%
Current tax	928.70	837.57	10.88%
Earlier years	3.39	(0.06)	(5750.00%)
Deferred tax	(27.10)	(29.67)	(8.66%)
Total tax expenses	904.99	807.83	12.03%
Profit for the year	2,527.81	2,253.34	12.18%

Total Income: Total income increased by 1.01% to Rs.82,599.01 Lakhs for the Fiscal 2025 from Rs.81,771.25 Lakhs for the Fiscal 2024 due to marginal increase in revenue from operations. However, other income has increased significantly by 50.31% during Fiscal 2025 as compared to in Fiscal 2024.

Revenue from operations: Revenue from operations increased marginally by 0.80% to Rs.82,069.29 Lakhs for the Fiscal 2025 from Rs.81,418.83 Lakhs for the Fiscal 2024, primarily due to increase in Retail sale from Rs.28,972.19 Lakhs in the Fiscal 2024 to Rs.36,886.98 Lakhs in the Fiscal 2025 representing an increase of 27.32%. The increase in retail sales is attributable to increase in sale volumes from existing stores and also contribution to revenue from the newly opened 9 (nine) stores. The number of stores increased from thirty-three (33) stores in Fiscal 2024 to forty-two (42) stores in Fiscal 2025. However, the increase in Retail sale was off-set by decrease in Trading sales from Rs.14116.18 Lakhs in Fiscal 2024 to Rs.8317.62 lakhs in Fiscal 2025 representing a decrease of 41.08%, mainly due to reduction in export sales. The decrease in export sale is on account of restriction levied by the Government of India on the export of Sugar, the export sale of sugar decreased from Rs.6,398.39 Lakhs in the Fiscal 2024 to NIL in the Fiscal 2025 representing a decrease of 100%. Further, the revenue from processing sales reduced from Rs.37256.33 Lakhs in Fiscal 2024 to Rs.36117.33 Lakhs in Fiscal 2025 representing a decrease of 3.06%, mainly on account of limited availability of raw materials in the surrounding markets.

The increase in revenue from sale of products was partially offset by decrease in other operating revenue from Rs.1,074.13 Lakhs in Fiscal 2024 to Rs.747.36 Lakhs in Fiscal 2025 representing a change of 30.42%. The decrease in other operating revenue is attributable to mainly due to decrease in export benefits from Rs.770.36 Lakhs in Fiscal 2024 to Rs.381.39 Lakhs in Fiscal 2025. The decrease in export benefit is attributable to decrease in export sales by 32.72%. The decrease in export benefit was partially off-set by increase in display income Rs.227.99 Lakhs in the Fiscal 2024 to Rs.287.38 Lakhs in the Fiscal 2025 and increase in miscellaneous operating income (majorly includes scrap sales, insurance claim received) from Rs.75.78 Lakhs in Fiscal 2024 to Rs.78.59 Lakhs in Fiscal 2025.

Other Income: Other income increased by 50.31% from Rs.352.42 Lakhs in Fiscal 2024 to Rs.529.72 Lakhs in Fiscal 2025 primarily due to increase in exchange gain of Rs.145.37 Lakhs in Fiscal 2025 as compared to Fiscal 2024 and reversal of expected credit loss of Rs.30.00 Lakhs in Fiscal 2025 which was Nil in Fiscal 2024. The increase was partially off-set by decrease in interest income from Rs.76.91 Lakhs in Fiscal 2024 to Rs.51.63 Lakhs in Fiscal 2025.

Total expenses: Total expenses increased marginally by 0.58% to Rs.79,166.21 Lakhs for the Fiscal 2025 from Rs.78,710.07 Lakhs in the Fiscal 2024 primarily due to increase in employee benefit expenses, finance cost and depreciation and amortisation expense.

Cost of Materials Consumed: Cost of materials consumed decreased by 8.26% to Rs.35,243.56 Lakhs in Fiscal 2025 from Rs.38,415.32 Lakhs in Fiscal 2024, primarily due to decrease in processing sales. Cost of materials consumed comprises of purchase of raw materials and changes in opening and closing inventories of raw materials.

Purchases of Stock-In-Trade: Purchases of stock-in-trade increased by 8.32% to Rs.32,950.20 Lakhs in Fiscal 2025 from Rs.30,418.32 Lakhs in Fiscal 2024, primarily due to increase in retail sales in the Fiscal 2025.

Change in inventories of finished goods: Changes in inventories of finished goods decreased to Rs.2,062.92 Lakhs during Fiscal 2025 as compared to Rs.2,944.14 Lakhs in Fiscal 2024. In relation to inventories of finished goods, we had an opening stock of Rs.10,136.00 Lakhs and a closing stock of Rs.12,198.92 Lakhs for the Fiscal 2025, and an opening stock of Rs.7,191.86 Lakhs and a closing stock of Rs.10,136.00 Lakhs for the Fiscal 2024. The higher closing inventories for Fiscal 2025 can be attributed to increase in number of retail stores from thirty-three (33) in the Fiscal 2024 to fourty-two (42) in the Fiscal 2025. The closing inventory of finished goods for Fiscal 2025 is fifty-four (54) days of revenue from operations.

Employee Benefits Expense: Our employee benefits expense increased by 16.67% from Rs.2,717.83 Lakhs in Fiscal 2024 to Rs.3,170.95 Lakhs in Fiscal 2025, due to an increase in basic salary, wages and allowances to Rs.2,973.48 Lakhs in the Fiscal 2025 from Rs.2,565.57 Lakhs for the Fiscal 2024. The increase was attributable to increase in the number of overall employee counts during the Fiscal 2025 and the increase in basic salary, wages and allowances is also attributable to annual increments in employee salaries, wages and bonus paid during the Fiscal 2025 including, the increase in salary payable to our Directors, KMPs and SMPs. Increase in employee benefit expenses is also attributable to increase in staff welfare expenses from Rs.108.45 Lakhs in Fiscal 2024 to Rs.138.00 Lakhs in Fiscal 2025 and increase in contribution towards provident fund and other funds from Rs.43.81 Lakhs in Fiscal 2024 to Rs.59.48 Lakhs in Fiscal 2025.

Finance Costs: Our finance costs increased by 7.84% from Rs.1,518.82 Lakhs in Fiscal 2024 to Rs.1,637.97 Lakhs in Fiscal 2025, primarily due to an increase in interest on loan from bank by Rs.96.52 Lakhs which is attributable to an increase in working capital loan from bank from Rs.15,430.76 Lakhs in Fiscal 2024 to Rs.15,573.82 Lakhs in Fiscal 2025. Further, interest on loan from directors decreased from Rs.145.11 Lakhs in Fiscal 2024 to Rs.142.78 Lakhs in Fiscal 2025 due to a decrease in loan from directors by Rs.351.73 Lakhs in Fiscal 2025.

Depreciation and Amortization Expense: Our depreciation and amortization expense increased by 16.79% from Rs.1003.95 Lakhs in Fiscal 2024 to Rs.1,172.50 Lakhs in Fiscal 2025, primarily due to additions of depreciable fixed

assets of Rs.1,085.14 Lakhs.

Other expenses: Other expenses decreased by 6.94% from Rs.7,579.97 Lakhs in Fiscal 2024 to Rs.7.053.94 Lakhs in Fiscal 2025. The decrease in other expenses was primarily due to (i) clearing & Forwarding charges to Rs.1,424.18 Lakhs for the Fiscal 2025 from Rs.2,044.46 Lakhs for the Fiscal 2024, which was mainly attributable to decrease in export sales of sugar; (ii) commission & brokerage expenses to Rs.91.64 Lakhs in Fiscal 2025 from Rs.214.18 Lakhs for the Fiscal 2024, which was mainly attributable to decrease in export sales; (iii) Repair & maintainance expense to Rs.262.56 Lakhs in Fiscal 205 from Rs.275.06 Lakhs for the Fiscal 2024;

Profit before exceptional items and tax increased by 12.14% to Rs.3,432.80 Lakhs in Fiscal 2025 from Rs.3,061.18 Lakhs in Fiscal 2025 as total expense to total income reduced to 95.84% in Fiscal 2025 as against 96.26% during Fiscal 2024.

Profit before tax: As a result of the foregoing, we recorded an increase of 12.14% in our profit before tax, which amounted to Rs.3,432.80 Lakhs in Fiscal 2025 as compared to Rs.3,061.18 Lakhs in Fiscal 2024.

Tax expenses: Our tax expenses (current, earlier year and deferred) increased by 12.03% from Rs.807.83 Lakhs in Fiscal 2024 to Rs.904.99 Lakhs in Fiscal 2025. Our effective tax rate in Fiscal 2025 and Fiscal 2024 was 26.36% and 26.39%, respectively.

Restated Profit for the period: As a result of the foregoing, we recorded an increase of 12.18% in our profit for the Fiscal 2025 i.e. from Rs.2,253.34 Lakhs in Fiscal 2024 to Rs.2,527.81 Lakhs in Fiscal 2025.

Financial Year 2024 compared to Financial Year 2023

			(Rs. in Lakhs)
	Amount ( Rs. in lakhs)	Amount ( Rs. in lakhs)	Change (%)
Revenue from operations	81,418.83	1,01,854.78	(20.06%)
Other income	352.42	125.58	180.64%
Total Income	81,771.25	1,01,980.36	(19.82%)
Cost of materials consumed	38,415.32	32,407.46	18.54%
Purchases of Stock-In-trade	30,418.32	55,451.87	(45.14%)
Changes in inventories of finished goods	(2,944.14)	(1,839.72)	60.03%
Employee benefits expense	2,717.83	2,264.15	20.04%
Finance costs	1,518.82	1,113.45	36.41%
Depreciation and amortization expenses	1,003.95	985.78	1.84%
Other expenses	7,579.97	9,372.63	(19.13%)
Total expenses	78,710.07	99,755.63	(21.10%)
Profit before exceptional item and tax	3,061.18	2,224.73	37.60%
Exceptional items	-	-	-
Profit Before Tax	3,061.18	2,224.73	37.60%
Current tax	837.57	591.18	41.68%
Earlier year	(0.06)	(1.06)	(93.90%)
Deferred tax	(29.67)	(3.37)	780.45%
Total tax expenses	807.83	586.75	37.68%
Profit for the year	2,253.34	1,637.97	37.57%

Total Income: Total income decreased by 19.82% to Rs.81,771.25 Lakhs for the Fiscal 2024 from Rs.1,01,980.36 Lakhs for the Fiscal 2023 due to decrease in revenue from operations. However, other income has increased by 180.64% during Fiscal 2024 as compared to in Fiscal 2023.

Revenue from operations: Revenue from operations decreased by 20.06% to Rs.81,418.83 Lakhs for the Fiscal 2024 from Rs.1,01,854.78 Lakhs for the Fiscal 2023, primarily due to a decrease in Export Trading sale from Rs.41,967.28 Lakhs for the Fiscal 2023, to Rs.12,444.30 Lakhs for the Fiscal 2024 representing a decrease of 70.35% which partly got offset by increase in Retail sale from Rs.26,655.66 Lakhs in the Fiscal 2023 to Rs.28,972.19 Lakhs in the Fiscal 2024 representing an increase of 8.69% and increase in processed sale from Rs.31,042.15 Lakhs in the Fiscal 2023 to Rs.37,256.33 in the Fiscal 2024 representing an increase of 20.02%.

The decrease in export sale is on account of restriction levied by the Government of India on the export of Sugar, the export sale of sugar decreased from Rs.30,981.74 Lakhs in the Fiscal 2023 to Rs.6,398.39 Lakhs in the Fiscal 2024 representing a decrease of 79.35%. Further, retail sales increased from Rs.26,655.66 Lakhs for the Fiscal 2023 to Rs.28,972.19 Lakhs for the Fiscal 2024, representing an increase of 8.69%. The increase in retail sales is attributable to increase in sale volumes from existing stores and also contribution to revenue from the newly opened 3 (three) stores. The number of stores increased from thirty (30) stores in Fiscal 2023 to thirty-three (33) stores in Fiscal 2024. Furthermore, increase in processed sale is attributable to increase in sale volume at our Unit 1, Unit 2, Unit 3 of Agri-cluster which constituted an amount of Rs.12,870.87 Lakhs for Fiscal 2024 as against an amount of Rs.4,895.88 Lakhs for Fiscal 2023.

The decrease in revenue from sale of products was partially offset by increase in other operating revenue from Rs.1,035.99 Lakhs in Fiscal 2023 to Rs.1,074.13 Lakhs in Fiscal 2024 representing a change of 3.68%. The increase in other operating revenue is attributable to increase in display income Rs.94.20 Lakhs in the Fiscal 2023 to Rs.227.99 Lakhs in the Fiscal 2024, increase in miscellaneous operating income (majorly includes scrap sales, insurance claim received) from Rs.32.97 Lakhs in Fiscal 2023 to Rs.75.78 Lakhs in Fiscal 2024 and reduction in export benefits income from Rs.908.81 Lakhs in Fiscal 2023 to Rs. 770.36 Lakhs in Fiscal 2024.

Other Income: Other income increased by 180.64% from Rs.125.58 Lakhs in Fiscal 2023 to Rs.352.42 Lakhs in Fiscal 2024 primarily due to exchange Gain of Rs.257.23 in Fiscal 2024 as against exchange loss of Rs.328.62 Lakhs in Fiscal 2023 and increase in interest income from Rs.28.60 Lakhs in Fiscal 2023 to Rs.76.91 Lakhs in Fiscal 2024.

Total expenses: Total expenses decreased by 21.10% to Rs.78,710.07 Lakhs for the Fiscal 2024 from Rs.99,755.63 Lakhs in the Fiscal 2023 primarily due to decrease in purchase of stock-in trade and other expenses.

Cost of Materials Consumed: Cost of materials con sumed increased by 18.54% to Rs.38,415.32 Lakhs in Fiscal 2024 from Rs.32,407.46 Lakhs in Fiscal 2023, primarily due to higher volumes of products manufactured corresponding to higher sales and also on account of marginal increase in commodity prices. Cost of materials consumed comprises of purchase of raw materials and changes in opening and closing inventories of raw materials

Purchases of Stock-In-Trade: Purchases of stock-in-trade decreased by 45.14% to Rs.30,418.32 Lakhs in Fiscal 2024 from Rs.55,451.87 Lakhs in Fiscal 2023, primarily due to lower volumes of trading sales during the period under consideration. The decrease is primarily attributable to lower volume of bulk sugar trade, i.e. purchase of 13,162 MT. sugar representing an amount of Rs.5,067.26 Lakhs during Fiscal 2024 as against purchase of 76,543.30 MT. representing an amount of Rs.27,180.18 Lakhs during Fiscal 2023.

Change in inventories of finished goods: Changes in inventories of finished goods increased to Rs.2,944.14 Lakhs during Fiscal 2024 as compared to increase by Rs.1,839.72 Lakhs in Fiscal 2023. In relation to inventories of finished goods, we had an opening stock of Rs.7,191.86 Lakhs and a closing stock of Rs.10,136.00 Lakhs for the Fiscal 2024, and an opening stock of Rs.5,352.15 Lakhs and a closing stock of Rs.7,191.86 Lakhs for the Fiscal 2023. The higher closing inventories for Fiscal 2024 can be attributed to higher production during the period mainly due to increase in capacity utilization of the Agri-cluster. The closing inventory for Fiscal 2024 is fifty-seven (57) days of revenue from operations.

Employee Benefits Expense: Our employee benefits expense increased by 20.04% from Rs.2,264.15 Lakhs in Fiscal 2023 to Rs.2,717.83 Lakhs in Fiscal 2024, due to an increase in basic salary, wages and allowances to Rs.2,565.57 Lakhs in the Fiscal 2024 from Rs.2,124.66 Lakhs for the Fiscal 2023. The increase was attributable to increase in the number of overall employee counts during the Fiscal 2024, the increase in basic salary, wages and allowances is mainly attributable to annual increments in employee salaries, wages and bonus paid during the Fiscal 2024 including, the increase in salary payable to our Directors, KMPs and SMPs. Further, increase in salary also

contributed towards increase in contribution towards provident fund and other funds from Rs.36.69 Lakhs in Fiscal 2023 to Rs.43.81 Lakhs in Fiscal 2024 and also increase in staff welfare expenses from Rs.102.81 Lakhs in Fiscal 2023 to Rs.108.45 Lakhs in Fiscal 2024.

Finance Costs: Our finance costs increased by 36.41% from Rs.1,113.45 Lakhs in Fiscal 2023 to Rs.1,518.82 Lakhs in Fiscal 2024, primarily due to an increase in interest on loan from bank by Rs.519.91 Lakhs which is attributable to an increase in working capital loan from bank from Rs.14,406.41 Lakhs in Fiscal 2023 to Rs.15,430.76 Lakhs in Fiscal 2024. Further, interest on loan from directors decreased from Rs.287.44 Lakhs in Fiscal 2023 to Rs.145.11 Lakhs in Fiscal 2024 due to an decrease in loan from directors by Rs.776.17 Lakhs in Fiscal 2024.

Depreciation and Amortization Expense: Our depreciation and amortization expense increased by 1.84% from Rs.985.78 Lakhs in Fiscal 2023 to Rs.1003.95 Lakhs in Fiscal 2024, primarily due to additions of depreciable fixed assets of Rs.1,222.25.

Other expenses: Other expenses decreased by 19.13% from Rs.9,372.63 Lakhs in Fiscal 2023 to Rs.7,579.97 Lakhs in Fiscal 2024, generally in line with the decrease in our revenue from operations. The decrease in other expenses was primarily due to (i) clearing & Forwarding charges to Rs.2,044.46 Lakhs for the Fiscal 2024 from Rs.4,021.93 Lakhs for the Fiscal 2023, which was mainly attributable to decrease in decrease in export sales of sugar; (ii) Forex exchange fluctuation loss to Rs.NIL Lakhs for the Fiscal 2024 from Rs.328.62 Lakhs for the Fiscal 2023; (iii) commission & brokerage expenses to Rs.214.18 Lakhs for the Fiscal 2024 from Rs.386.66 Lakhs for the Fiscal 2023, which was mainly attributable to decrease in export sales; (iv) Advertisement & Sales Promotion Expenses to Rs.55.44 Lakhs for the Fiscal 2024 from Rs.154.77 Lakhs for the Fiscal 2023 (v) Legal and professional expense to Rs.134.29 Lakhs for the Fiscal 2024 from Rs.187.06 Lakhs for the Fiscal 2023; (vi) Repair & maintainance expense to Rs.275.06 Lakhs for the Fiscal 2024 from Rs.323.34 Lakhs for the Fiscal 2023; (vii) Travel & Conveyance expense to Rs.216.12 Lakhs for the Fiscal 2024 from Rs.247.30 Lakhs for the Fiscal 2023; (viii) APMC Charges to Rs.Nil Lakhs for the Fiscal 2024 from Rs.23.39 Lakhs for the Fiscal 2023; ; (ix) Bad debts to Nil for the Fiscal 2024 from Rs.14.91 Lakhs for the Fiscal 2023; Printing & stationery expense to Rs.14.06 Lakhs for the Fiscal 2024 from Rs.26.59 Lakhs for the Fiscal 2023.

Profit before exceptional items and tax increased by 37.60% to Rs.3,061.18 Lakhs in Fiscal 2024 from Rs.2,224.73 Lakhs in Fiscal 2023 as total expense to total income reduced to 96.26% in Fiscal 2024 as against 97.82% during Fiscal 2023.

Profit before tax: As a result of the foregoing, we recorded an increase of 37.60% in our profit before tax, which amounted to Rs.3,061.18 Lakhs in Fiscal 2024 as compared to Rs.2,224.73 Lakhs in Fiscal 2023.

Tax expenses: Our tax expenses (current, earlier year and deferred) increased by 37.68% from Rs.586.75 Lakhs in Fiscal 2023 to Rs.807.83 Lakhs in Fiscal 2024. Our effective tax rate in Fiscal 2024 and Fiscal 2023 was 26.39% and 26.37%, respectively.

Restated Profit for the period: As a result of the foregoing, we recorded an increase of 37.57% in our profit for the Fiscal 2024 i.e. from Rs.1,637.97 Lakhs in Fiscal 2023 to Rs.2,253.34 Lakhs in Fiscal 2024.

Capital Requirements

Our primary sources of liquidity include cash generated from operations and from borrowings, both short-term and long-term, including cash credit, term and working capital facilities and unsecured loan from directors. As of March 31, 2025, we had cash and cash equivalents and other bank balances of Rs.1,238.78 Lakhs.

Our financing requirements are primarily for working capital and investments in our business such as capital expenditures to upgrade and increase the capacities of our Manufacturing Facilities. We expect that cash flow from operations and borrowings will continue to be our principal sources of funds in the long-term. We evaluate our funding requirements periodically in light of our net cash flow from operating activities, the requirements of our business and operations, acquisition opportunities and market conditions.

Our net working capital days (which represents working capital divided by revenue from operations for the relevant year multiplied by 365 days) was 97 days, 85 days and 61 days for the Fiscals 2025, 2024 and 2023, respectively. The increase in our net working capital days from Fiscal 2024 toFiscal 2025 was primarily due to increases in our inventories, increase in trade receivables.

Cash Flows

The following table summarizes our cash flows for the Fiscal 2025, Fiscal 2024 and Fiscal 2023 are as set forth below:

			(Rs. in Lakhs)
Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Net Cash generated from Operating Activities	2,772.27	2,481.66	(556.18)
Net Cash (Used in) Investing Activities	(1,056.34)	(1,166.57)	(488.46)
Net Cash from/(Used in) Financing Activities	(839.85)	(1,283.24)	(3.98)
Net Increase / (Decrease) in Cash and Cash Equivalents	876.08	31.85	(1048.62)
Cash and Cash Equivalents at the beginning of the year	362.70	330.85	1,379.47
Cash and Cash Equivalents at the end of the year	1,238.78	362.70	330.85

Cash flows generated from operating activities

We generated Rs.2,772.27 Lakhs net cash from operating activities during Fiscal 2025. While our net profit before tax was Rs.3,432.80 Lakhs, we had an operating profit before working capital changes of Rs.6,039.79 Lakhs, primarily due to adjustments for depreciation and amortization expenses of Rs.1,065.72 Lakhs and finance cost of Rs.1,637.97 Lakhs, which were partially offset by unwinding of discount on security deposit Rs.28.24 Lakhs, dividend and interest income of Rs.23.40 Lakhs and unrealised gain / loss by Rs.103.19 Lakhs, respectively. Our adjustments for working capital changes for Fiscal 2025 primarily consisted of increase in trade receivables of Rs.2,597.99 Lakhs, increase in inventories of Rs.1,671.81 Lakhs, increase in trade payable by Rs.1,292.02 Lakhs, decrease in other financial assets of Rs.243.23 Lakhs, decrease in other non-current assets of Rs.156.67 Lakhs, decrease in other current assets of Rs.18.25 Lakhs and increase in other current liabilities of Rs.35.79 Lakhs. Our cash generated from operating activities was Rs.3,577.54 Lakhs, adjusted by tax paid of Rs.805.27 Lakhs.

We generated Rs.2481.66 Lakhs net cash from operating activities during Fiscal 2024. While our net profit before tax was Rs.3061.18 Lakhs, we had an operating profit before working capital changes of Rs.5406.07 Lakhs, primarily due to adjustments for depreciation and amortization expenses of Rs.1003.96 Lakhs and finance cost of Rs.1518.82 Lakhs, which were partially offset by unwinding of discount on security deposit Rs.23.30 Lakhs, dividend and interest income of Rs.54.03 Lakhs and unrealised gain / loss by Rs.100.65 Lakhs, respectively. Our adjustments for working capital changes for Fiscal 2024 primarily consisted of decrease in trade receivables of Rs.791.48 Lakhs, increase in inventories of Rs.5032.52 Lakhs, increase in trade payable by Rs.465.82 Lakhs, increase in other financial assets of Rs.141.40 Lakhs, decrease in other non-current assets of Rs.14.90 Lakhs, decrease in other current assets of Rs.2025.72 Lakhs and decrease in other current liabilities of Rs.155.89 Lakhs. Our cash generated from operating activities was Rs.3272.06 Lakhs, adjusted by tax paid of Rs.790.40 Lakhs.

We generated Rs.(556.18) Lakhs net cash from operating activities during Fiscal 2023. While our net profit before tax was Rs.2224.73 Lakhs, we had an operating profit before working capital changes of Rs.4215.61 Lakhs, primarily due to adjustments for depreciation and amortization expenses of Rs.985.78 Lakhs and finance cost of Rs.1113.45 Lakhs, which were partially offset by provision for expected credit loss reversed Rs.84.00 Lakhs, unwinding of discount on security deposit Rs.16.89 Lakhs, dividend and interest income of Rs.11.99 Lakhs. Our adjustments for working capital changes for Fiscal 2023 primarily consisted of increase in trade receivables of Rs.1908.07 Lakhs and increase in inventories of Rs.2220.02 Lakhs, increase in trade payable by Rs.1119.82 Lakhs, increase in other financial assets of Rs.276.24 Lakhs, increase in other non-current assets of Rs.206.15 Lakhs, decrease in other current assets of Rs.427.69 Lakhs and decrease in other current liabilities of Rs.1238.15 Lakhs. Our cash generated from operating activities was Rs.(119.41) Lakhs, adjusted by tax paid of Rs.436.77 Lakhs.

Cash flows used in investing activities

Net cash used in investing activities was Rs.1,056.34 Lakhs in Fiscal 2025, primarily on account of purchase of property, plant and equipment, capital advance, proceeds from sale of property, plant and equipment, dividend received and interest received.

Net cash used in investing activities was Rs.1166.57 Lakhs in Fiscal 2024, primarily on account of purchase of property, plant and equipment, capital advance, proceeds from sale of property, plant and equipment, dividend

received and interest received.

Net cash used in investing activities was Rs.488.46 Lakhs in Fiscal 2023, primarily on account of purchase of property, plant and equipment, capital advance, proceeds from sale of property, plant and equipment, dividend received and interest received.

Cash flows generated from / (used in) financing activities

Net cash used in financing activities in Fiscal 2025 amounted to Rs.839.85 Lakhs, which primarily consisted of fresh and increased short term borrowing and increase in proceeds from issue of shares, decrease in long term borrowing, finance lease payment and interest paid.

Net cash used in financing activities in Fiscal 2024 amounted to Rs.1283.24 Lakhs, which primarily consisted of fresh and increased short term borrowing, decrease in long term borrowing, finance lease payment and interest paid.

Net cash used in financing activities in Fiscal 2023 amounted to Rs.3.98 Lakhs, which primarily consisted of fresh and increased short term borrowing, decrease in long term borrowing, finance lease payment, dividend payment and interest paid.

Capital Expenditure

Capital expenditures consist primarily of investments in new manufacturing facilities and equipment. We also make investments at our manufacturing facilities to improve our manufacturing capacity, upgradation and improvements. Capital expenditure will vary from year to year depending upon a number of factors, including the need to replace and update equipment. In the Fiscal 2025, Fiscal 2024 and Fiscal 2023, we incurred capital expenditure of Rs.1085.14 Lakhs, Rs.1222.25 Lakhs and Rs.873.32 Lakhs, respectively. A significant amount of our capital expenditure was incurred towards Plant & Machinery, Furniture & Fixtures & Motor Vehicles.

Financial indebtedness

As of May 31, 2025, our total outstanding borrowings (current and non-current) were Rs.16,428.82 Lakhs, which primarily consisted of term loans from banks, working capital loans and overdraft facility. For further details related to our indebtedness, see "Financial Indebtedness" on page 516 of this Red Herring Prospectus.

Capital and Other Commitments

As of March 31, 2025, the estimated amounts of contract remaining to be executed on capital account and not provided for was NIL.

The following table sets forth a summary of the maturity profile of our contractual undiscounted cash obligations with definitive payment terms as of March 31, 2025.

Particulars	Total	Payment due by period
		Less than one year	More than one year
		( Rs. in Lakhs)
Borrowings	18,053.70	16,037.83	2,015.87
Lease Liabilities	200.96	109.34	91.62
Trade Payables	6,039.93	6039.93	-
Other financial liabilities	245.72	144.99	100.73
Total	24,540.31	22,332.09	2,208.22

Contingent Liabilities

Contingent liabilities, to the extent not provided for, as of March 31, 2025 and, as determined in accordance with Ind AS 37, are described below.

Particulars	Year ended March 31, 2025
A) Disputed Tax Liability	Nil
(i) Income Tax Liability	Nil
(ii) GST Liability	Nil
(iii) EPCG Liability	Nil
B) Bank Guarantee issued by bank to vendors/suppliers on behalf of the company	Rs.67.80 Lakhs

Off-Balance Sheet Commitments and Arrangements

We do not have any off-balance sheet arrangements, derivative instruments swap transactions or relationships with affiliates or other unconsolidated entities or financial partnerships that would have been established for the purpose of facilitating off-balance sheet arrangement.

Quantitative and Qualitative Analysis of Market Risks

We are exposed to various types of market risks during the normal course of business. The market risks we are exposed to include credit risk, liquidity risk, interest rate risk, commodity price risk and foreign currency risk.

Credit risk

Credit risk is the risk that the counter party will not meet its obligation under a financial instrument or customer contract, leading to a financial loss. We are exposed to credit risk from our operating activities, primarily from trade receivables, and from our financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

We manage our credit risk through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which we grant credit terms in the normal course of business. We establish an allowance for doubtful debts and impairment that represents our estimate of incurred losses in respect of trade and other receivables and investments. Moreover, given the diverse nature of our business, trade receivables are spread over a number of customers with no significant concentration of credit risk.

In addition, we hold bank balances with reputed and creditworthy banking institutions within the approved exposures limit of each bank. None of our cash equivalents, including time deposits with banks, are past due or impaired. Credit risk from balances with banks and financial institutions is managed by our treasury department in accordance with our policy. Investments of surplus funds are made in bank deposits and other risk-free securities. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterpartys potential failure to make payments.

Liquidity risk

Liquidity risk is defined as the risk that we will not be able to settle or meet our obligations on time or at reasonable price. Our objective is to at all times maintain optimum levels of liquidity to meet our cash and liquidity requirements. We closely monitor our liquidity position and deploy a robust cash management system. We maintain adequate sources of financing through the use of short term bank deposits and cash credit facilities. Processes and policies related to such risks are overseen by senior management, who monitor our liquidity position through rolling forecasts on the basis of expected cash flows.

Interest rate risk

Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. We are exposed to market risk with respect to changes in interest rates related to our borrowings. Interest rate risk exists with respect to our indebtedness that bears interest at floating rates tied to certain benchmark rates as well as borrowings where the interest rate is reset based on changes in interest rates set by RBI. Interest rates are highly sensitive to many factors beyond our control, including the monetary policies of the RBI, domestic and international economic and political conditions, inflation and other factors. Upward fluctuations in interest rates increase the cost of servicing existing and new debts, which adversely affects our results of operations and cash flows. As a part of our interest rate risk management policy, our treasury department

closely tracks interest rate movements on a regular basis and determines investments of surplus funds. Commodity price risk

Exposure to market risk with respect to commodity prices primarily arises from our purchases and sales of our raw materials. These are commodity products and also subject to various uncertainties including climate change, rainfall, the prices of which may fluctuate significantly over short periods of time. The prices of our raw materials generally fluctuate in line. Commodity price risk exposure is evaluated and managed through operating procedures, sourcing policies and also increasing the selling price. As of March 31, 2023, March 31, 2024 and March 31, 2025 we had not entered into any material derivative contracts to hedge exposure to fluctuations in commodity prices.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Our exposure to the risk of changes in foreign exchange rates relates primarily to our operating activities (when revenue or expense is denominated in a foreign currency). Foreign currency exchange rate exposure is partly balanced by purchasing of goods from the respective countries. We evaluate our exchange rate exposure arising from foreign currency transactions and follow established risk management policies.

Unusual or Infrequent Events or Transactions

Except as disclosed in this Red Herring Prospectus, to our knowledge, there have been no unusual or infrequent events or transactions that have in the past or may in the future affect our business operations or future financial performance.

Known Trends or Uncertainties

Our business has been subject, and we expect it to continue to be subject, to the trends identified above in "Significant Accounting Policies" and the uncertainties described in "Risk Factors -The occurrence of natural or man-made disasters, fires, epidemics, pandemics, acts of war, terrorist attacks, civil unrest and other events could materially and adversely affect the financial markets and our business", on page 103 of the Red Herring Prospectus. Except as disclosed in this Red Herring Prospectus, there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.

Significant Economic Changes

Our business has been subject, and we expect it to continue to be subject, to significant economic changes that materially affect or are likely to affect income from continuing operations. Please see "Risk Factors " and "Significant Accounting Policies " on pages 40 and 492 of this Red Herring Prospectus, respectively.

Future Relationship between Cost and Revenue

Other than as described in "Risk Factors ", "Our Business " and above in "Significant Accounting Policies " on pages 40, 292 and 492, respectively, to our knowledge, there are no known factors that may adversely affect our business prospects, results of operations and financial condition.

New Products or Business Segments

Except as disclosed in this Red Herring Prospectus, including as described in "Our Business" on page 292 of this Red Herring Prospectus, there are no new products or business segments that have or are expected to have a material impact on our business prospects, results of operations or financial condition.

Supplier or Customer Concentration

In our Non-Retail Business, we have a wide customer base and have served over five hundred (500) customers as on March 31, 2025. However, our top five (5) customers contributed around 10.30% of our revenue from operations. We do not have any material dependence on a single or few suppliers. We procure our key raw

materials from various parts of the country and process our products with utmost care without the use of artificial preservatives or chemicals, thereby creating a product portfolio of spices, peanut, flour, pulses, staples & groceries and mango pulp, which carry the freshness and goodness of each ingredient. We believe our unique business model has helped us to penetrate the niche segment of our market and establish a customer base in India and overseas. Systematic procurement of raw material in their respected seasons helps us to provide linear quality of our products for the whole year. We also source our raw materials directly from farmers, to ensure that we use absolutely natural ingredients in our products and also through traders and APMC markets. We source our raw materials from across the country to ensure that the products we manufacture have an authentic taste without artificially disturbing the natural taste of the spices or other food products. For instance, we source chillies from the APMC market of Guntur, Warangal, Gondal and our wheat flour is made from wheat grains which are sourced from Dahod, Rajkot, Gondal, Nimbahera, Jaipur and also sourced directly from Food Corporation of India (FCI) and the pulses / dal are sourced from Jalgaon, Rajkot and Dhanduka.

Competitive Conditions

We operate in a highly competitive industry and we expect competition from existing and new competitors to intensify. For details, please refer to the discussions of our competition in the sections "Risk Factors", "Industry Overview" and "Our Business" on pages 40, 195, 292 of this Red Herring Prospectus.

Seasonality

We typically experience higher sales during the second half of the Financial Year as compared to the first half of the Financial Year due to change in the climatic conditions prevailing in India. Please see "Risk Factors- Our operations are dependent on the supply of large amounts of raw material such as wheat, spices and peanuts. We do not have long term agreements with suppliers for our raw materials and any increase in the cost of, or a shortfall in the availability of, such raw materials could have an adverse effect on our business and results of operations, and seasonable variations could also result in fluctuations in our results of operations" on page 45 of this Red Herring Prospectus.

Change in Accounting Policies

There have been no material changes in our accounting policies for the Fiscal 2025, Fiscal 2024 and Fiscal 2023. Significant Developments Occurring after March 31, 2025

Except as disclosed in this Red Herring Prospectus, there are no circumstances that have arisen since March 31, 2025, the date of the last financial statements included in this Red Herring Prospectus, which materially and adversely affect or is likely to affect our operations or profitability, or the value of our assets or our ability to pay our material liabilities within the next twelve months.

Recent Accounting Pronouncements

As of the date of this Red Herring Prospectus, there are no recent accounting pronouncements, which would have a material effect on our financial condition or results of operations.