Pavna Industries Ltd Management Discussions

“Annexure-1”

MANAGEMENT DISCUSSION & ANALYSIS

Forward looking statement

Statements in this Management Discussion and Analysis of Financial Condition and Results of Operations of the Company describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events.

The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company assumes no responsibility to publicly amend, modify or revise forward looking statements, on the basis of any subsequent developments, information or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include changes in government regulations, tax laws, economic developments within the country and such other factors globally.

The financial statements are prepared under historical cost convention, on accrual basis of accounting, and in accordance with the provisions of the Companies Act, 2013 (the Act) and comply with the Indian Accounting Standards as pronounced by the Institute of Chartered Accountants of India (ICAI) from time to time. The Management of Pavna Industries Limited has used estimates and judgments relating to the financial statements on a prudent and reasonable basis, in order that the financial statements, reflect in a true and fair manner, the state of affairs and profit for the year.

The following discussions on our financial condition and result of operations should be read together with our auditedfinancial statements and the notes to these statements included in the annual report. Unless otherwise specified or the context otherwise requires, all references herein to "we”, “us”, “our”, “the Company”, "Pavna” are to "Pavna Industries Limited

ECONOMIC OVERVIEW

Global Economic Overview

The global economy is projected to grow at a slower pace in 2025, with the IMF forecasting a growth rate of 2.8%, down from 3.3% in 2024. This deceleration is primarily attributed to escalating trade tensions, notably the resurgence of protectionist policies and significant tariff increases by major economies, which have disrupted global trade flows and heightened economic uncertainty.

Inflationary pressures are expected to persist, albeit with some moderation. Global inflation is anticipated to decline from approximately 6.8% in 2023 to around 4.5% by 2025. However, the pace of this decline varies across regions, influenced by factors such as supply chain disruptions and differing monetary policy responses.

Advanced economies are experiencing varied growth trajectories. The United States is forecasted to grow at 1.8% in 2025, a significant slowdown from previous years, impacted by high tariffs and reduced consumer spending. The Euro Areas growth is also expected to decelerate, with particular weakness in Germany, while Spain remains a positive outlier. Emerging markets, including China, face challenges due to decreased export demand, with Chinas growth projected at 4% for 2025.

Overall, the global economic outlook for 2025 remains cautious. Key risks include ongoing geopolitical tensions, potential increases in inflation, and further disruptions in global supply chains. These factors contribute to an environment of uncertainty, necessitating vigilant monitoring and adaptive strategies by businesses worldwide.

Source: https://www.imf.org/en/Publications/WEO/weo-database/2025/april https://www.imf.org/en/Publications/WEO

https://www2.deloitte.com/us/en/insights/economy/global-economic-outlook/weekly-update.html

https://www.ey.com/en us/insights/strategy/global-economic-outlook Indian Economic Scenario

Indias economy is projected to grow at 6.2% in FY25, according to the International Monetary Funds April 2025 World Economic Outlook. This marks a slight revision from the earlier forecast of 6.5%, primarily due to escalating global trade tensions and geopolitical uncertainties, notably the impact of increased U.S. tariffs.

Despite these external challenges, domestic demand remains robust, with private consumption, especially in rural areas, serving as a key growth driver. The governments emphasis on fiscal prudence and structural reforms aims to bolster economic resilience and attract private investment.

Inflation is expected to moderate, with the IMF projecting consumer prices to rise by 4.2% in 2025, aligning with the Reserve Bank of Indias target range. This anticipated stability in inflation is likely to support consumer spending and investment activities.

However, the Ministry of Finance has highlighted potential risks to the growth outlook stemming from ongoing trade disputes and geopolitical tensions, which could disrupt supply chains and dampen investor sentiment. The government underscores the importance of proactive measures to mitigate these risks and sustain economic momentum.

Source: https://www2.deloitte.com/us/en/insights/economy/asia-pacific/india-economic-

outlook.html

https://india.un.org/en/287164-un-report-forecasts-robust-growth-indian-economy

https://pib.gov.in/PressReleasePage.aspx?PRID=2113316

https://www.businesstodav.in/india/storv/indias-economic-outlook-for-2025-navigating-

slowdown-structural-challenges-and-global-uncertainty-459352-2025-01-02

INDUSTRY STRUCTURE AND DEVELPOMENT Global Automobile Industry

In 2025, the global automotive industry is navigating a complex landscape marked by modest growth and significant challenges. Global vehicle sales are projected to increase by approximately 2.7%, reaching 98.7 million units, a deceleration influenced by high vehicle prices, consumer debt, and potential policy shifts.

Electric vehicles (EVs) continue to gain traction, with sales expected to reach 17 million units in 2025, driven by consumer interest in eco-friendly transportation and supportive government policies. However, affordability concerns and the need for expanded charging infrastructure remain significant hurdles.

Technological advancements are reshaping the industry, with investments in autonomous driving and connected car technologies enhancing safety and user experience. The global connected car market is projected to grow significantly, from $56 billion in 2020 to $121 billion in 2025.

Supply chain disruptions, exacerbated by geopolitical tensions and trade policy uncertainties, continue to challenge manufacturers. Companies are reevaluating their supply chains and production strategies to mitigate risks associated with tariffs and regional instabilities.

Looking ahead, the global automotive industry in 2025 is focused on recovery and innovation. With the stabilization of supply chains and a strong push towards electric and autonomous vehicles, the sector is expected to continue its growth. However, companies must navigate the complexities of cost management and regulatory environments to capitalize on these opportunities.

Source: https://www.forbes.com/sites/sarwantsingh/2025/01/13/global-automotive-outlook-

predictions-for-2025/

https://www.pib.gov.in/PressNoteDetails.aspx?NoteId=154025&ModuleId=3&reg=3&lang=

1

India Auto Component Industry

In FY25, Indias automotive sector continued its growth trajectory, albeit at a moderated pace compared to previous years. The industry witnessed a 7.3% increase in domestic sales and a remarkable 19.2% surge in exports, underscoring its resilience and adaptability in a dynamic global environment.

The passenger vehicle (PV) segment achieved a record high of 4.3 million units sold, marking a 2% year-on-year growth. This growth was predominantly driven by the Utility Vehicles (UVs), which now constitute 65% of total PV sales, up from 60% in the previous fiscal year.

The surge in UV sales reflects changing consumer preferences towards larger and more versatile vehicles.

The two-wheeler segment experienced a robust 9.1% growth, with 19.6 million units sold. This resurgence is attributed to improved rural demand and the introduction of new models catering to diverse consumer needs. Notably, electric two-wheelers have gained traction, now accounting for over 6% of total two-wheeler sales.

Three-wheelers also saw a positive trend, with sales reaching 741,420 units, registering a 6.7% growth. The demand was primarily driven by the passenger sub-segment and the increasing need for last-mile connectivity solutions.

Indias auto component industry demonstrated significant growth in FY25. In the first half of the fiscal year, the industry recorded an 11.3% increase, achieving a turnover of ?3.32 lakh crore (USD 39.6 billion). This growth was fueled by steady demand from Original Equipment Manufacturers (OEMs), exports, and the aftermarket segment.

The Automotive Component Manufacturers Association of India (ACMA) projects the industry to achieve a year-on-year growth of 8% to 11% for the entire FY25. This optimistic outlook is supported by higher value addition and increased export demand.

Despite global challenges, the Indian automotive industry is poised for continued growth, driven by strong domestic demand, supportive government policies, and a focus on innovation and sustainability.

Source: https://www.ibef.org/industry/autocomponents-india

https://economictimes.indiatimes.com/industrv/auto/auto-news/indias-automobile-industry-

will-be-number-one-in-world-in-next-5-years-nitin-

gadkari/articleshow/117353987.cms?from=mdr

https://www.insightsonindia.com/2025/04/12/automotive-industry-landscape-in-india/ Government Initiative

The Government of India has launched the Production Linked Incentive (PLI) Scheme for the automobile and auto component industry with a budgetary outlay of ?25,938 crore, spanning five years from FY2022-23 to FY2026-27. This scheme aims to boost domestic manufacturing of advanced automotive technology products, including electric vehicles (EVs) and hydrogen fuel cell vehicles, thereby enhancing the global competitiveness of the Indian automotive sector.

Complementing the PLI scheme, the National Programme on Advanced Chemistry Cell (ACC) Battery Storage has been introduced to promote the manufacturing of high-efficiency battery storage systems in India. This initiative is crucial for the development of EVs and renewable energy sectors, aiming to reduce dependency on imports and establish a robust domestic supply chain.

The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) India Scheme continues to play a pivotal role in promoting electric mobility in the country. Under its second phase, the scheme focuses on supporting the electrification of public and shared transportation, including subsidies for electric buses, three-wheelers, and two-wheelers, thereby accelerating the adoption of EVs across various segments.

The introduction of the Bharat New Car Assessment Program (BNCAP) is set to enhance vehicle safety standards in India. By providing star ratings for vehicles based on their performance in crash tests, BNCAP aims to encourage manufacturers to improve the safety features of their vehicles, thus fostering innovation and excellence in the auto component sector.

Indias auto component industry has demonstrated significant growth, with revenues expected to cross USD 80.1 billion in FY2025, up from USD 49.3 billion in 2020, reflecting a compound annual growth rate (CAGR) of 8%. The sector contributes approximately 2.3% to Indias GDP and directly employs over 1.5 million people.

Exports have also seen a substantial increase, reaching USD 21.2 billion in FY2024, with projections to hit USD 30 billion by 2026. This growth is supported by government initiatives like the PLI scheme, which incentivizes the production of advanced automotive technologies and components.

The Indian EV market is experiencing rapid expansion, with sales growing at a CAGR of over 76% from FY2020 to FY2024. The governments commitment to achieving 30% electric mobility by 2030 is reinforced by policies such as customs duty exemptions on the import of capital goods and machinery required for manufacturing lithium-ion batteries. These measures aim to reduce the cost of EVs and promote their adoption across the country.

With continued support from government policies and schemes, the Indian automotive and auto components industry is poised for sustained growth. The focus on electric mobility, safety standards, and domestic manufacturing is expected to enhance the sectors global competitiveness, attract investments, and generate employment opportunities, thereby contributing significantly to Indias economic development.

Source: https://heavyindustries.gov.in/pli-scheme-automobile-and-auto-component-industry

https://www.ibef.org/industry/autocomponents-india

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2114919

https://www.motorindiaonline.in/indian-auto-comp-industry-set-to-cross-80-bn-revenue-in-

fy2025-up-from-49-3-bn-in-2020/

About Pavna Industries Limited

Pavna Industries Limited, formerly known as Pavna Locks Limited, was incorporated in April 19, 1994. The Company is engaged in the business of manufacturing wide range of reliable and high quality automotive parts for reputed OEMs serving different vehicle segments including passenger vehicles, two-wheelers, three-wheelers, heavy and light commercial vehicles, and off-road vehicles. PAVNA is a well-established Company in the South Asian automotive industry, with long history of innovation, technology, manufacturing and market leadership spanning over 50 years.

The Company has its state-of-the-art manufacturing plants located strategically in Aligarh (Uttar Pradesh), Aurangabad (Maharashtra), and Pantnagar (Uttarakhand). These plants are situated in close proximity to the plants of its OEM customers, allowing for greater interaction

and timely response to their requirements. It also has diverse range of product portfolio which includes Ignition Switches, Fuel Tank Caps, Latches, Auto Locks, Switches, Oil Pump, Throttle Body, Fuel Cocks, Casting Components, and more. The Company has wide presence in the domestic as well as export markets, exporting to several countries like Italy, Sri Lanka, Indonesia, Sudan, U.S.A. and Bangladesh. Apart from this the Company is also focused on customer centric approach catering to various esteemed Companies in the industry like Bajaj, Kawasaki, Honda, TVS, Mahindra, Escorts, Royal Enfield, Ashok Leyland, Mahindra Wheels, Eicher Motors, Tork Motors, Revolt, Mahindra Electric, etc.

PAVNA is committed to providing its customers with the latest and most innovative products, which is why the Company undertakes extensive research and development activities. The focus is on enhancing product portfolio, improving the quality of products, and upgrading the manufacturing processes. This is achieved through a combination of in-house R&D capabilities, as well as joint ventures and technical collaborations with partners such as Sunworld Moto Industrial Co, an Indo-Taiwan joint venture Company.

The Companys goal is to continuously strive towards technological advancement and innovation, while keeping customers needs at the forefront of everything the Company does.

FINANCIAL OVERVIEW -

The consolidated financial performance of the Company for the financial year ended March 31^st, 2025, is as follows:

Total revenue from operations stood at Rs. 308.24 crore for the year ended March 31, 2025, as against Rs. 316.87 crore for the corresponding previous period, decrease of 2.73%

EBITDA (excluding other income) was at Rs. 33.05 crore as against Rs. 34.49 crore in FY24, decrease of 4.17%

EBITDA Margin for the year ended FY25 was 10.72% as against 10.88% in FY24.

The PAT (profit after tax) was Rs. 8.04 crore for the year ended March 31, 2025, as against Rs. 12 crore for the corresponding previous period, a decline of 33% it is due to the companys continued strategic transition towards the high-margin Proprietary segment, which involved a planned reduction in the lower-margin Casting segment. While this shift aligns with our longterm vision, the near-term impact on profitability was expected. Notably, the Proprietary business registered a robust growth of over 20%, and non-casting revenues rose from ?220 crore in FY24

FY25 PAT Margin stood at 2.61% as against PAT Margin of 3.79% in FY24, decrease of 118 bps

RESOURCES AND LIQUIDITY

As on March 31, 2025, the consolidated net worth stood at Rs. XX crore and the consolidated debt was at Rs. XX crore

The cash & cash equivalents and bank balances at the end of March 31, 2025 were Rs. 1.15 crore and Rs. 0.31 crore respectively

RISKS AND CONCERNS

Like every business, the Company faces risks, both internal and external, in the undertaking of its day-to-day operations and in pursuit of its longer-term objectives. A detailed policy drawn up and dedicated risk workshops are conducted for each business vertical and key support functions wherein risks are identified, assessed, analyzed and accepted / mitigated to an acceptable level within the risk appetite of the organization. The risk registers are also reviewed from time to time.

The Company faces the following Risks and Concerns:

Credit Risk

To manage its credit exposure, Pavna has determined a credit policy with credit limit requests and approval procedures. Company does its own research of clients financial health and project prospects before entering into an agreement with them. Timely and rigorous process is followed up with clients for payments as per schedule. The Company has suitably streamlined the process to develop a focused and aggressive receivables management system to ensure timely collections.

Interest Rate Risk

The Company has judiciously managed the debt-equity ratio. It has been using a mix of loans and internal cash accruals. The Company has well managed the working capital to reduce the overall interest cost.

Competition Risk

Like in most other industries, strong scope of opportunities come with intense competition. We face different levels of competition in each of our operating categories, from domestic as well as multinational companies. Pavna has created strong differentiators in project execution, portfolio, level on involvement in marketing and delivery, which make it resilient to competition. Furthermore, the Company continues to invest in technology and people to remain ahead of the curve. A strong and stable client base, comprising large and mid-sized corporations, further helps mitigate this risk. We counter this risk with the quality of our infrastructure, our customer-centric approach, value-added services and our ability to innovate customer specific solutions, focusing on pricing and aggressive marketing strategy, disciplined project executions, along with prudent financial and human resources management and better control over costs. Thus, we expect to be significantly insulated from this risk.

Tariffs Risk

Tariffs imposed on imported auto parts could increase the cost of production and impact the profitability of the industry.

Regulation Risk

Changes in regulations can create pressure for automotive makers to rethink their supply base and manufacturing locations on short notice, leading to supply chain disruptions.

Environmental regulations: The automotive industry is facing pressure to reduce its carbon footprint, and failure to do so could lead to penalties and loss of market share.

Disrupted supply chain: The COVID-19 pandemic has caused disruptions in the global supply chain, leading to production shutdowns and component shortages.

Quality control: The high products liability in the auto component industry makes quality control a critical issue.

OPPORTUNITIES

• Emerging as a Global Manufacturing Hub: The shift of global manufacturing bases from traditional to emerging markets is positioning India as a preferred destination. This creates vast potential for Indian auto component manufacturers to cater to both domestic and international OEMs.

• Growth in Electric and Hybrid Vehicle Segment: The rising global focus on sustainable transportation is fueling demand for electric and hybrid vehicles. This offers a significant growth opportunity for Indian suppliers to develop batteries, EV powertrains, lightweight materials, and other green mobility components.

• Rising Export Potential: Indian auto component exports witnessed robust growth and are projected to reach USD 80 billion by 2026. Quality improvements, competitive costs, and expanding trade partnerships are further enhancing Indias export attractiveness.

• Favorable Government Policies and Incentives: Policy frameworks like the PLI scheme, FAME-II, and ACC Battery Storage Program are driving domestic manufacturing, innovation, and EV ecosystem development·offering a conducive environment for expansion.

• Technological Advancements and Smart Mobility: Increasing adoption of connected, autonomous, shared, and electric (CASE) mobility opens avenues for developing components related to sensors, AI-based systems, ADAS, and advanced software integration.

• Aftermarket Growth: Rising vehicle ownership and increased lifespan of vehicles are fueling the domestic aftermarket segment, offering steady demand for replacement and value-added components.

• Localisation and Import Substitution: OEMs are focusing more on local sourcing to reduce dependency on imports, offering a massive opportunity for Indian players to scale production and become self-reliant.

• Sustainability and Green Manufacturing: As global automakers prioritize sustainable practices, suppliers offering environmentally friendly, recyclable, and energy-efficient components will see increased demand and collaboration opportunities.

Source: https://www.ibef.ore/industry/autocomponents-india

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2114919

https://heavvindustries.gov.in/pli-scheme-automobile-and-auto-component-industrv

https://www.motorindiaonline.in/indian-auto-comp-industry-set-to-cross-80-bn-revenue-

in-fy2025-up-from-49-3-bn-in-2020/

• Intense Competition: The auto component industry faces increased competition, especially from international suppliers, which can affect market share, profitability, and innovation. With global players entering the Indian market, local companies need to constantly innovate to stay competitive.

• Weak Demand for Private Ownership of Cars Powered by Internal Combustion Engines (ICE): The growing shift towards electric vehicles (EVs) and declining demand for traditional ICE-powered vehicles pose a threat to the auto component industry. This change in consumer preference affects demand for auto components specific to conventional vehicles.

• Consumer Demand: Rising vehicle prices and uncertain economic conditions could lead to reduced consumer spending on new cars. The impact of high costs and changing preferences toward shared mobility (such as ride-hailing services) can depress demand for vehicles, directly affecting the auto component sector.

• Rising Inflation Rate: As inflation increases, the cost of raw materials and labor also rises, affecting the overall cost of production. This could squeeze profit margins for auto component manufacturers, especially in a highly competitive environment.

• Regulatory Challenges: As government regulations on emissions and safety standards become stricter, manufacturers are required to invest heavily in upgrading technology, which can result in higher compliance costs. While this is necessary for long-term sustainability, it poses short-term financial challenges.

• Supply Chain Disruptions: Global supply chain disruptions, particularly in sourcing critical components like semiconductors and lithium-ion batteries, can slow production timelines and increase costs. The auto component industry is vulnerable to these global disruptions.

The auto component industry faces both significant opportunities and challenges. In order to stay competitive, businesses need to adapt to the ongoing shifts in consumer preferences, invest in new technologies, and navigate external threats such as economic uncertainties and rising production costs. The evolving market conditions will require continuous innovation and strategic adjustments to remain profitable.

Source: https://www.ibef.org/industry/autocomponents-india

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2114919

https://heavyindustries.gov.in/pli-scheme-automobile-and-auto-component-industry

https://www.motorindiaonline.in/indian-auto-comp-industry-set-to-cross-80-bn-revenue-in-

fv2025-up-from-49-3-bn-in-2020/

INTERNAL CONTROL SYSTEMS AND ADEQUACY

The Company has an internal audit function designed to review the adequacy of internal control checks in the system which covers all significant areas of Companys operations such as accounting and finance, procurement, business operations, statutory compliances, IT processes, safeguarding the assets and their protection against unauthorized use, among others. The Internal Audit function performs the internal audit of Companys activities based on an internal audit plan, which is reviewed each year and is approved by the Board of Audit Committee.

The Audit Committee reviews the report submitted by the internal auditors. Suggestions for improvement are considered and the audit committee follows up on corrective action. Disciplinary action is taken, wherever required, for non-compliance to corporate policies and controls.

The Company has also implemented effective systems for achieving highest level of efficiency in operations, to achieve optimum and effective utilization of resources, monitoring thereof and the compliance with provisions all laws including the Companies Act, 2013, Listing Agreement, directions issued by the Securities and Exchange Board of India, labour laws, tax laws etc. It also aims at improvement in financial management, and investment policy. The System ensures appropriate information flow to facilitate effective monitoring.

HUMAN RESOURCES

We believe that our employees are key contributors to our business success. We focus on attracting and retaining the best possible talent. Our Company looks for specific skill-sets, interests and background that would be an asset for our business.

As on March 31, 2025, the Company had 774 employees on payroll. The manpower is a prudent mix of experienced and young professionals which gives us the dual advantage of stability and growth. The work progress and skilled/ semi-skilled/ unskilled resources, together with the Companys strong management team, have enabled it to successfully implement our growth plans.

The Company also imparts behavioural, technical and on the job training to our employees. Technical trainings are mandated by the vendor whenever the employees have to deal with pretechnical or post technical issues. Training calendars are set by the vendors and nominated employees from our Company attend the program and obtain a feedback on the completion of the program.

OUTLOOK

As we step into financial year 2025, I am filled with excitement and confidence in the direction Pavna Industries Limited is heading. This year is set to be transformative, as our recent strategic initiatives and investments reflect our commitment to growth in the automotive sector.

The acquisition of (4,335 sq. mtr.) land in June in Pantnagar, Uttarakhand, is a pivotal step in our expansion strategy. This new greenfield plant will serve primarily to the production of Proprietary components. By leveraging the logistical and cost advantages of Pantnagar, we are in a good position to align our operations and better serve our key clients like Bajaj Auto and other OEMs. This expansion will not only enhance our operational capacity but also attract a broader range of OEMs in the region.

The Company has acquired land for the development of our first-ever manufacturing facility in South India in coming years · a state-of-the-art plant in Hosur, Tamil Nadu. It will be designed with the latest technology. It will enhance operational efficiency, improve profitability, and strengthen our presence in a region that is home to key clients like TVS Motor, Ola Electric and other OEMs based in South.

The Company has also acquired 11.49 acres (approx.) different parcels of land for future expansion. This move underlines our proactive approach in planning for the future and ensuring that we are well-positioned to meet the evolving needs of our customers and partners.

To strengthen our reach in the e-lock, EV segment, the Company has entered into a joint venture agreement with SmartChip Microelectronic Corporation (SMC), Taiwan based Company who will contribute its present and future technical skills, innovations, and R&D capabilities in automotive e-lock systems for both ICE & EV and EV components like Motor Controller, Throttle Body, Dashboard for 2W & 3W and EV charging piles.

Also, the Company planned reduction in the lower-margin Casting segment and continued strategic transition towards the high-margin Proprietary segment.

The Indian auto component industry is experiencing significant growth, driven by increased vehicle production and surge in electric vehicle adoption. Leveraging the governments Production Linked Incentive (PLI) scheme, favourable trade policies, and the increased inflow of domestic and foreign investments into the automotive sector, Pavna is well positioned to capitalize on emerging opportunities, driving the business forward, and solidifying our position in the auto sector.

As we embark on this journey, we remain optimistic about the future of the industry and our role within it. Pavna Industries is committed to supporting the Aatmnirbhar Bharat initiative by manufacturing high-quality indigenous components in our facilities. Our focus on innovation, quality, and strategic expansion will drive our growth and ensure we continue to meet the evolving needs of our clients and the market. We are excited about the opportunities that lie ahead and we are confident in our ability to deliver remarkable value to our customers, shareholders, and stakeholders.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations of Standalone Financial Statements are as follows:

S.No. Ratio	Measurement Unit	As at 31 March 2025	As at 31 March 2024	% Change March 2025	Explanations
1 Current Ratio	Times	3.21	1.02	216.35%	Due to issuance of Preferential shares in current year, equity was increased and outstanding debt and payables was repaid.
2 Debt Equity Ratio	Times	0.15	1.70	-91.05%	Due to issuance of Preferential shares in current year, equity was increased and outstanding debt and payables was repaid.
3 Debt Service coverage Ratio	Times	0.75	1.53	-51.03%	Due to issuance of Preferential shares in current year, equity was increased and outstanding debt and payables was repaid.
4 Return on equity ratio	%	6.25%	11.82%	-47.08%	Due to issuance of .Preferential shares in current year, equity was increased and outstanding debt and payables was repaid.
5 Inventory Turnover Ratio	Times	2.76	2.80	-1.12%	Not Applicable
6 Trade Receivables turnover Ratio	Times	5.61	5.53	1.60%	Not Applicable
7 Trade Payables turnover Ratio	Times	9.25	6.78	36.45%	Due to issuance of Preferential shares in current year, equity was increased and outstanding debt and payables was repaid.
8 Net Capital turnover ratio	Times	2.90	131.39	-97.80%	Due to issuance of Preferential shares in current year, equity was increased and outstanding debt and payables was repaid.
9 Net Profit ratio	%	3%	3%	-1.55%	Not Applicable
10 Return on Capital Employed	%	14.10%	16.06%	-12.17%	Not Applicable
11 Return on Investment	%	6.99%	29.71%	-76.46%	Due to issuance of Preferential shares in current year, equity was increased and outstanding debt and payables was repaid.