You should read the following discussion in conjunction with our restated financial statements attached in the chapter titled "Financial Information of the Company" beginning on page 159. You should also read the section titled "Risk Factors" on page 21 and the section titled "Forward Looking Statements" on page 20 of this Red Herring Prospectus, which discusses a number of factors and contingencies that could affect our financial condition and results of operations. The following discussion relates to us, and, unless otherwise stated or the context requires otherwise, is based on our Restated financial Statements. Our financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditor dated July 16, 2026 which is included in this Red Herring Prospectus under "Financial Statements ". The Restated Financial Information has been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. Our financial year ends on March 31 of each year, and all references to a particular financial year are to the twelvemonth period ended March 31 of that year.
BUSINESS OVERVIEW
We are engaged in the manufacturing of rotational molding (roto molding) compounds, which serve as a key raw material for producing a wide range of hollow plastic products through the rotational molding process. Our product portfolio primarily comprises customized polyethylene-based compounds, formulated using Linear Low-Density Polyethylene (LLDPE), High- Density Polyethylene (HDPE), and other specialty additives. These compounds are supplied in powder or granulated form to rotational molding manufacturers, enabling them to produce durable and application-specific plastic products across diverse end-use industries.
Roto molding compounds form a critical input in the manufacturing of plastic products such as water, fuel and chemical storage tanks, portable sanitation units, furniture, industrial containers, and other customized hollow plastic parts. Our manufacturing process involves blending, pelletizing and pulverization, followed by quality control to ensure uniform particle size, optimal melt flow, and consistent performance in end-use applications.
We cater to a diverse base of customers across various industries such as building and construction, water management, agriculture, automotive, and consumer products etc. Our formulation and manufacturing capabilities enable us to deliver foam compound, stone effect, flame-retardant, anti-static and custom-colored compound depending on client needs. Additionally, we also undertake the production of custom-moulded tanks catering to diverse end-use applications. Further, we provide jobwork services such as rotolining (internal lining of tanks and equipment for enhanced chemical resistance and durability) and toll pulverising (custom grinding of polymers into powder form as per client specifications). Our manufacturing facility is situated at Gat No-172, Khatwad, Tal - Dindori, Dist - Nashik, Maharashtra, India-422004.
Our facility has its own laboratory and a quality control department that adheres to safety standards. We are an "ISO 9001:2015 - Quality Management System" certified company and also recognized as a One Star Export House by the Ministry of Commerce and Industry, in recognition of our consistent export performance. Our company is also a member of "The Plastics Export Promotion Council" (PLEXCONCIL), established under Foreign Trade Policy 2009-14 by the Department of Commerce.
We are exporting to countries like: Bahrain, Bangladesh, Cameroon, Guinea, Guinea-Bissau, Iraq, Kuwait, Lithuania, Mauritius, Nepal, Nigeria, Oman, Poland, Russia, Saint Lucia, Saudi Arabia, Slovenia, South Africa, Taiwan, Thailand, Turkey and U.A.E. etc.
We also generate revenue from distribution of various products and chemicals used in rotational moulding industry. We are authorized distributor of specific type of chemicals and compounds like: paints and coatings imported from UK, Polypropylene Compound imported from Thailand and speciality release agents imported from USA. Similarly we are authorized distributor of various tools and equipment used in rotational moulding industry like: Rotational Moulding process control equipment imported from Northern Ireland, plastic welding machine imported from Canada and Flash-It Ancillary Tools imported from Derbyshire, UK.
Our revenue from operations from manufacturing, services and trading activities in the last three financial year is as under:
| Particulars | 2025-26 | % of total sales | 2024-25 | % of total sales | 2023-24 | % of total sales |
| Manufacturing | 5229.31 | 92.61% | 4,878.30 | 96.98% | 4,454.73 | 94.84% |
| Services | 11.58 | 0.21% | 38.50 | 0.77% | 11.97 | 0.25% |
| Trading | 405.65 | 7.18% | 113.52 | 2.26% | 230.23 | 4.90% |
| Total | 5646.53 | 100.00% | 5030.32 | 100.00% | 4696.93 | 100.00% |
Our Company is led by our Promoter, Umakant Nivrutti Savadekar who hold the degree of Bachelor of Engineering (Mechanical Engineering) and Master of Technology (Nano science & Technology) with an overall work experience of around 20 years in the rotational moulding industry. Our experience and exposure in the roto moulding industry allow us to deal with various types of formulation widely used in various end use applications.
Key Performance Indicators of our Company
| Key Financial Performance | FY 2025-26 | FY 2024-25 | FY 2023-24 |
| Revenue from operations(1) | 5646.53 | 5030.32 | 4696.93 |
| EBITDA(2) | 608.66 | 436.87 | 275.78 |
| EBITDA Margin(3) | 10.78% | 8.68% | 5.87% |
| PAT(4) | 408.90 | 284.17 | 169.39 |
| PAT Margin(5) | 7.24% | 5.65% | 3.61% |
| Net Worth(6) | 1378.83 | 969.93 | 685.76 |
| RoNW(%)(7) | 29.66% | 29.30% | 24.70% |
| RoCE (%)(8) | 32.73% | 31.99% | 23.27% |
Notes:
(1) ‘Revenue from Operations means the Revenue from Operations as appearing in the Restated Financial Statements
(2)
‘EBITDA is calculated as Profit before tax + Depreciation + Interest Expenses - Other Income(3)
‘EBITDA Margin is calculated as EBITDA divided by Revenue from Operations(4)
‘PAT is calculated as Profit before tax - Tax Expenses.(5)
‘PAT Margin is calculated as PATfor the year divided by revenue from operations.(6)
‘Net worth means Equity share capital + Reserves and surplus (including, Securities Premium, General Reserve and surplus in statement of profit and loss).(7)
‘Return on Net Worth is ratio of Restated Profit after Tax and Net Worth.(8)
‘Return on Capital Employed is calculated as EBIT divided by capital employed, which is defined as shareholders equity plus total borrowings {current & non-current} and deferred tax.STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
For details in respect of "Statement of Significant Accounting Policies", please refer to Annexure IV of Restated Financial Statements beginning on page 159 of this Red Herring Prospectus.
Factors Affecting our Results of Operations
1. General economic and business conditions in the markets in which we operate and in the local, regional, national and international economies;
2. Reliance on our key customers;
3. Changes in demand or market trends for roto moulding compounds and related products;
4. Fluctuations in the cost and availability of raw materials;
5. Adverse changes in domestic or global economic conditions;
6. Competition from existing or new players with greater financial or technological resources;
7. Delays or disruptions in our supply chain or distribution network;
8. Operational risks at our manufacturing facilities, including equipment failures, safety incidents, or compliance lapses;
9. Foreign exchange rate fluctuations impacting exports or imported inputs;
10. Changes in customer preferences or technological advancements that could affect product demand;
11. Any force majeure events, including natural disasters, pandemics, or geopolitical developments.
12. Changes in laws and regulations that apply to the industries in which we operate;
13. Failure to comply with quality standards may lead to cancellation of existing and future orders;
14. General economic, political and other risks that are out of our control;
15. Inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;
16. Companys ability to successfully implement its growth strategy and expansion plans;
17. Occurrence of Environmental Problems & Uninsured Losses;
18. Concentration of ownership among our Promoters
Discussion on Result of Operations
The following discussion on results of operations should be read in conjunction with the Restated Financial Statements for the financial years ended on March 31, 2026, March 31, 2025 and March 31, 2024.
| Particulars | March 31, 2026 | % of Total Income | March 31, 2025 | % of Total Income | March 31, 2024 | % of Total Income |
| Revenue from Operations | 5646.53 | 98.23% | 5,030.32 | 98.42% | 4,696.93 | 98.70% |
| Other Incomes | 101.56 | 1.77% | 81.01 | 1.58% | 61.84 | 1.30% |
| Total Income (I+II) | 5748.09 | 100.00% | 5,111.33 | 100.00% | 4,758.76 | 100.00% |
| Expenses: | ||||||
| (a) Cost of Material Consumed | 4287.28 | 74.59% | 3,976.13 | 77.79% | 3,521.95 | 74.01% |
| (b) Purchase of Stock-in-Trade | 342.70 | 5.96% | 136.15 | 2.66% | 300.96 | 6.32% |
| (c) Changes in inventories of finished goods work-in-progress and Stock-in-Trade | -299.35 | -5.21% | -182.22 | -3.57% | 3.58 | 0.08% |
| (d) Employee Benefits Expenses | 113.29 | 1.97% | 122.88 | 2.40% | 101.03 | 2.12% |
| (e) Finance Costs | 104.62 | 1.82% | 88.23 | 1.73% | 62.44 | 1.31% |
| (f) Depreciation and Amortization Expense | 52.28 | 0.91% | 49.83 | 0.97% | 40.33 | 0.85% |
| (g) Other Expenses | 592.83 | 10.31% | 542.30 | 10.61% | 492.14 | 10.34% |
| Total Expenses (IV) | 5193.64 | 90.35% | 4,733.28 | 92.60% | 4,522.42 | 95.03% |
| Profit before Exceptional/ Extraordinary items and tax (I-IV) | 554.45 | 9.65% | 378.05 | 7.40% | 236.34 | 4.97% |
| Exceptional Items | 0.00 | 0.00% | 3.50 | 0.07% | 0.00 | 0.00% |
| Profit before Extraordinary Items and tax (V-VI) | 554.45 | 9.65% | 381.55 | 7.46% | 236.34 | 4.97% |
| Extraordinary Items | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
| Profit before tax (VII-VIII) | 554.45 | 9.65% | 381.55 | 7.46% | 236.34 | 4.97% |
| Tax Expense | ||||||
| a) Current Tax | 139.40 | 2.43% | 93.83 | 1.84% | 62.27 | 1.31% |
| b) Deferred Tax | 6.16 | 0.11% | 3.55 | 0.07% | 4.68 | 0.10% |
| Restated profit after tax for the period from continuing operations (IX-X) | 408.90 | 7.11% | 284.17 | 5.56% | 169.39 | 3.56% |
| Profit/ (Loss) from Discontinuing operation | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
| Tax expenses of discontinuing operations | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
| Profit/(loss) from Discontinued operations (after tax) (XII-XIII) | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
| Restated Profit for the Period | 408.90 | 7.11% | 284.17 | 5.56% | 169.39 | 3.56% |
Revenue from operations:
Revenue from operations mainly consists of revenue from sale of products and sale of services.
Other Incomes
Other income comprises of Interest Income, Subsidies & Grants, Export Incentives, Foreign Exchange Fluctuation, Dividend Income, Other Incomes and Bad Debts Recovered.
Total Expenses:
Total expenses consist of Cost of Material Consumed, Purchases of Stock in Trade, Changes in inventories of finished goods work-in-progress and Stock-in-Trade, Employee benefits expense, Finance costs, Depreciation and amortization expenses and other expenses.
Cost of Material Consumed
The Cost of Material Consumed comprises of Raw Material Purchase During the Year, Raw material at the Commencement and end of the Year.
Purchase of stock in trade
Purchase of stock in trade primarily comprises of Purchases of goods.
Change in inventories of stock in trade
Change in inventories of stock in trade comprises of increase/ (decrease) in inventory of Finished Goods, Trading Goods, Packing Material and Scrap Material.
Employee benefits expense:
Employee benefits expense primarily comprises of Salary and Wages, Director Remuneration, Contribution to Provident and Other Fund and provision for gratuity.
Finance Costs:
Our Finance cost includes Interest expenses and Other borrowing cost.
Depreciation and Amortization Expenses:
Depreciation and Amortization Expenses includes depreciation on Office & Factory Building, Plant & Machinery, Electrical Equipment and Fittings, Furnitures & Fixtures, Office Equipment, Roads, Motor Vehicles, Water Pipeline Works and Computers
Other Expenses:
Other Expenses comprises of Power & Fuel, Job Work Charges, Testing Expenses, Consumables & Spares, Insurance Expenses, Carriage Inwards, Custom Duties, Technical Consultancy Expenses, Import Handing Charges, Other Charges, Exhibition Expenses, Export Freight & Handling Charges, Office Expenses, Rent Charges, Rates & Taxes, Payment to Auditors, Telephone & Internet Expenses, Printing and Stationery, Travelling & Local Conveyance, Postage & Courier Expenses, Membership & Sponsorship Charges, Licence and Application Fees, Repairs & Maintenance Expenses, Bank Charges, Taxes & Demands, Bad Debts Written Off, ROC Expenses, Fire Safety Compliance Charges and Other Misc Expenses etc.
FINANCIAL YEAR 2026 COMPARED TO FINANCIAL YEAR 2025 Total Income:
The Total Income increased from FY 25 to FY 26, driven by an improvement in Revenue from Operations and Other Income. Revenue from Operations grew by 12.25%, rising from Rs.5030.32 lakhs in FY 25 to Rs. 5646.53 lakhs in FY 26 along with
Other Income which grew by 25.37%, increasing from ^81.01 lakhs in FY 25 to Rs.101.56 lakhs in FY 26. This overall growth reflects the companys operational performance during the year.
Revenue from Operations
During the financial year 2025-26, the revenue from operations of the Company reported a sales growth of 12.25%, primarily driven by a 12.88% increase in product sales. The product sales were largely attributable to rise in manufactured product sales. The growth in manufactured sales was supported by increase in demand for Flexible Compounds, Polyethylene (PE) ESF granules, Roto Moulding Color Powders and Stone Effect compound which grew by 22.61%, 92.67%, 13.52% and 15.76% respectively.
Other Income:
During the financial year 2025-26, the other income of the Company increased by 25.37%, from ^81.01 lakhs in FY 2024-25 to Rs.101.56 lakhs in FY 2025-26. This increase was due to a increase in interest on deposit increased by 30.94% from Rs.5.43 lakhs in FY 2024-25 to Rs.7.11 lakhs in FY 2025-26, Foreign exchange fluctuation increased by 183.40% from Rs.12.99 lakhs in FY 2024-25 to Rs.36.80 lakhs in FY 2025-26 and additionally Bad debts Recovered by Rs.1.96 lakhs.
Total Expenses
The total expense for the financial year 2025-26 increases to Rs.5193.64 Lakhs from Rs.4733.28 lakhs in the Financial Year 202425 representing an increase of 9.73%. Such increase was due to increases in the volume of business operations of the Company.
Cost of Material Consumed
The Cost of Material Consumed comprises of Raw Material Purchase During the Year, Raw material at the Commencement and end of the Year. The Cost of Material Consumed for the financial year 2025-26 increases to Rs.4287.28 Lakhs from Rs.3976.13 lakhs in the Financial Year 2024-25 representing an increase of 7.83%. This increase mainly was due to a rise material purchase during the year increased by 8.90% from Rs.3967.85 lakhs in FY 2024-25 to Rs.4320.83 lakhs in FY 2025-26.
Purchases of Stock in Trade
The Purchase of stock in trade for the financial year 2025-26 increases to Rs.342.70 lakhs from Rs.136.15 lakhs in the Financial Year 2024-25 representing an increase of 151.72%. Such increase was due to increase in the volume of stock in trade.
Change in inventories of stock in trade
The Change in inventories of stock in trade comprises of increase/(decrease) in inventory of Finished Goods, Trading Goods, Packing Material and Scrap Material used in business operations. The Change in inventories of stock in trade for the financial year 2025-26 increase to Rs.708.84 Lakhs from Rs.409.49 lakhs in the Financial Year 2024-25 representing an increase of 73.10%. This increase was due to a rise in the closing inventories of Finished Goods, Trading Goods and Scrap Material which increased by 110.27%, 2.55% and 42.67% respectively from Rs.267.49 lakhs, Rs.122.02 lakhs, and Rs.10.43 lakhs respectively in the Financial Year 2024-25 to Rs.562.46 lakhs, Rs.125.13 lakhs, and ^ 14.89 lakhs respectively in Financial Year 2025-26.
Employee benefits expense:
During the financial year 2025-26, the total Employee Benefits Expenses of the Company decreased by 7.80%, from Rs.122.88 lakhs in FY 2024-25 to ^113.29 lakhs in FY 2025-26. This decrease was due to decrease in Salaries and Wages decreased by
0.40% from ^81.19 lakhs in FY 2024-25 to Rs.80.87 lakhs in FY 2025-26 and Provision for Gratuity decreased by 216.01% from Rs.4.40 lakhs in FY 2024-25 to Rs.(5.10) lakhs in FY 2025-26.
Finance Costs:
During the financial year 2025-26, the Finance cost of the Company increased by 18.57%, from Rs.88.23 lakhs in FY 2024-25 to Rs.104.62 lakhs in FY 2025-26. This increase was due to increase in Interest on Statutory Dues increased by 157.85% from Rs.4.30 lakhs in FY 2024-25 to ^11.08 lakhs in FY 2025-26, Invoice Discounting Charges increased by 96.68% from Rs.2.17 lakhs in FY 2024-25 to Rs.4.27 lakhs in FY 2025-26, Interest to Others increased by 25.50% from Rs.34.17 lakhs in FY 2024-25 to Rs.42.88 lakhs in FY 2025-26 and Interest on MSME Dues increased by 32.80% from Rs.2.19 lakhs in FY 2024-25 to Rs.2.91 lakhs in FY 2025-26.
Depreciation and Amortization Expenses:
Depreciation for the financial year 2025-26 stood at Rs.52.28 Lakhs as against Rs.49.83 Lakhs during the financial year 2024-25. The increase in depreciation was around 4.92% which was majorly due to increase in depreciation of Factory Building, Furniture and fixtures, office equipment and computers etc.
Other Expenses:
During the financial year 2025-26, the Other Expenses of the Company increased by 9.32%, from Rs.542.30 lakhs in FY 202425 to Rs.592.83 lakhs in FY 2025-26. This increase was primarily attributable to an increase in Power & Fuel by 11.26%, from Rs.240.51 lakhs in FY 2024-25 to Rs.267.59 lakhs in FY 2025-26, Testing Expenses by 38.60%, from Rs.0.55 lakhs in FY 2024-25 to Rs.0.76 lakhs in FY 2025-26, Consumables & Spares by 8.99%, from Rs.29.63 lakhs in FY 2024-25 to Rs.32.30 lakhs in FY 202526, Factory Insurance Expenses by 78.76%, from Rs.0.93 lakhs in FY 2024-25 to ^ 1.66 lakhs in FY 2025-26, Carriage Inwards by 0.20%, from Rs.60.83 lakhs in FY 2024-25 to Rs.60.95 lakhs in FY 2025-26, Custom Duties by 163.32%, from Rs.9.05 lakhs in FY 2024-25 to Rs.23.84 lakhs in FY 2025-26, Import Handling Charges by 80.48%, from Rs.2.72 lakhs in FY 2024-25 to Rs.4.91 lakhs in FY 2025-26, Other Charges by 29.89%, from ^21.12 lakhs in FY 2024-25 to Rs.27.43 lakhs in FY 2025-26, Exhibition Expenses by 109.48%, from Rs.2.69 lakhs in FY 2024-25 to Rs.5.64 lakhs in FY 2025-26, Export Insurance & Other Charges by 12.57%, from Rs.12.78 lakhs in FY 2024-25 to ^14.38 lakhs in FY 2025-26, Rates & Taxes by 49.81%, from Rs.0.64 lakhs in FY
2024- 25 to Rs.0.96 lakhs in FY 2025-26, Professional and Consultancy Fees by 8.37%, from Rs.20.43 lakhs in FY 2024-25 to Rs.22.14 lakhs in FY 2025-26, Telephone & Internet Expenses by 51.83%, from Rs.2.49 lakhs in FY 2024-25 to Rs.3.78 lakhs in FY
2025- 26, Printing & Stationery by 18.96%, from Rs.3.05 lakhs in FY 2024-25 to Rs.3.63 lakhs in FY 2025-26, Travelling & Local Conveyance by 76.45%, from Rs.4.27 lakhs in FY 2024-25 to Rs.7.53 lakhs in FY 2025-26, Postage & Courier Expenses by 80.78%, from Rs.0.75 lakhs in FY 2024-25 to Rs.1.36 lakhs in FY 2025-26, Membership & Sponsorship Charges by 134.59%, from Rs.2.10 lakhs in FY 2024-25 to Rs.4.93 lakhs in FY 2025-26, Other Miscellaneous Expenses by 77.61%, from Rs.2.46 lakhs in FY 2024-25 to Rs.4.36 lakhs in FY 2025-26, License & Application Fees by 39.07%, from Rs.1.40 lakhs in FY 2024-25 to Rs.1.95 lakhs in FY 2025-26, Repairs & Maintenance Expenses by 569.13%, from Rs.0.43 lakhs in FY 2024-25 to Rs.2.86 lakhs in FY 2025-26, and Taxes & Demands by 918.46%, from Rs.0.87 lakhs in FY 2024-25 to Rs.8.86 lakhs in FY 2025-26.
Restated Profit before tax:
Net profit before tax for the financial year 2025-26 increased to Rs.554.45 Lakhs as compared to profit of Rs.381.55 Lakhs in the financial year 2024-25. The increase of 45.31% was majorly due to factors as mentioned above.
Restated profit after tax:
Net profit after tax for the financial year 2025-26 increased to Rs.408.90 Lakhs as compared to profit of Rs.284.17 Lakhs in the financial year 2024-25. The increase of 43.89% was due to factors increase in PAT margin. The PAT margin for the financial year 2024-25 was 5.65% and the same has increased to 7.24% in the financial year 2025-26.
FINANCIAL YEAR 2025 COMPARED TO FINANCIAL YEAR 2024
Total Income:
The Total Income increased from FY 24 to FY 25, driven by an improvement in Revenue from Operations and Other Income. Revenue from Operations grew by 7.10%, rising from Rs.4696.93 lakhs in FY 24 to Rs. 5030.32 lakhs in FY 25 along with Other Income which grew by 31.00%, increasing from Rs.61.84 lakhs in FY 24 to ^81.01 lakhs in FY 25. This overall growth reflects the companys operational performance during the year.
Revenue from Operations
During the financial year 2024-25, the revenue from operations of the Company reported a sales growth of 7.10%, primarily driven by a 6.55% increase in product sales. The product sales were largely attributable to rise in manufactured product sales. The growth in manufactured sales was supported by increase in demand for roto moulding compounds and Custom Molded
Tanks, which grew by 9.68% and 4.91% respectively. Additionally, the Company also derived increased revenue from sale of services which rose by 221.71%, mainly driven by growth in Toll Pulverising and Rotolining Services, which increased by 66.59% and 50.00%, respectively.
Other Income:
During the financial year 2024-25, the other income of the Company increased by 31.00%, from Rs.61.84 lakhs in FY 2023-24 to ^81.01 lakhs in FY 2024-25. This increase was due to a increase in Interest on deposit increased by 66.86% from Rs.3.26 lakhs in FY 2023-24 to Rs.5.43 lakhs in FY 2024-25, Export Incentive increased by 26.69% from Rs.14.33 lakhs in FY 2023-24 to Rs.18.15 lakhs in FY 2024-25, Foreign exchange fluctuation increased by 232.51% from Rs.3.91 lakhs in FY 2023-24 to Rs.12.99 lakhs in FY 2024-25 and Other income increased by 412.83% from Rs.0.99 lakhs in FY 2023-24 to Rs.5.08 lakhs in FY 2024-25.
Total Expenses
The total expense for the financial year 2024-25 increases to Rs.4733.28 Lakhs from Rs.4522.42 lakhs in the Financial Year 202324 representing an increase of 4.66%. Such increase was due to increases in the volume of business operations of the Company.
Cost of Material Consumed
The Cost of Material Consumed comprises of Raw Material Purchase During the Year, Raw material at the Commencement and end of the Year. The Cost of Material Consumed for the financial year 2024-25 increases to Rs.3976.13 Lakhs from Rs.3521.95 lakhs in the Financial Year 2023-24 representing an increase of 12.90%. This increase was due to a rise in opening stock of raw material which increased by 29.23% from Rs.169.18 lakhs in FY 2023-24 to Rs.218.64 lakhs in FY 2024-25, material purchase during the year increased by 11.10% from Rs.3571.40 lakhs in FY 2023-24 to Rs.3967.85 lakhs in FY 2024-25 and closing stock of raw material decreased by 3.78% from Rs.218.64 lakhs in FY 2023-24 to Rs.210.36 lakhs in FY 2024-25.
Purchases of Stock in Trade
The Purchase of stock in trade for the financial year 2024-25 decreases to ^ 136.15 lakhs from Rs.300.96 lakhs in the Financial Year 2023-24 representing an decrease of 54.76%. Such decrease was due to decrease in the volume of stock in trade.
Change in inventories of stock in trade
The Change in inventories of stock in trade comprises of increase/(decrease) in inventory of Finished Goods, Trading Goods, Packing Material and Scrap Material used in business operations. The Change in inventories of stock in trade for the financial year 2024-25 decrease to Rs.(182.22) Lakhs from Rs.3.58 lakhs in the Financial Year 2023-24 representing an decrease of 5195.62%. This decrease was due to a rise in the closing inventories of Finished Goods, Trading Goods, Packing Material and Scrap Material which increased by 123.40%, 27.50%, 80.39% and 59.66% respectively from ^119.73 lakhs, Rs.95.70 lakhs, Rs.5.29 lakhs and Rs.6.54 lakhs respectively in the Financial Year 2023-24 to Rs.267.49 lakhs, Rs.122.02 lakhs, Rs.9.54 lakhs and Rs.10.43 lakhs respectively in Financial Year 2024-25.
Employee benefits expense:
During the financial year 2024-25, the total Employee Benefits Expenses of the Company increased by 21.63%, from Rs.101.03 lakhs in FY 2023-24 to Rs.122.88 lakhs in FY 2024-25. This increase was due to increase in Salaries and Wages increased by 28.99% from Rs.62.94 lakhs in FY 2023-24 to Rs.81.19 lakhs in FY 2024-25, Contribution to Provident and Other Funds increased by 21.08%, increasing from Rs.6.02 lakhs in FY 2023-24 to Rs.7.29 lakhs in FY 2024-25 and Provision for Gratuity increased by 113.52%, from Rs.2.06 lakhs in FY 2023-24 to Rs.4.40 lakhs in FY 2024-25.
Finance Costs:
During the financial year 2024-25, the Finance cost of the Company increased by 41.30%, from Rs.62.44 lakhs in FY 2023-24 to Rs.88.23 lakhs in FY 2024-25. This increase was due to increase in Interest on Borrowings by 2.53% from Rs.42.59 lakhs in FY 2023-24 to Rs.43.67 lakhs in FY 2024-25, Interest on Statutory Dues increased by 14.16% from Rs.3.77 lakhs in FY 2023-24 to Rs.4.30 lakhs in FY 2024-25, Interest to Others increased by 177.15% from ^ 12.33 lakhs in FY 2023-24 to Rs.34.17 lakhs in FY
2024-25, Interest on MSME Dues which was Nil in FY 2023-24 stood at Rs.2.19 lakhs in FY 2024-25 and Other Borrowing Costs - Others Charges increased by 15.73% from ^ 1.49 lakhs in FY 2023-24 to Rs.1.73 lakhs in FY 2024-25.
Depreciation and Amortization Expenses:
Depreciation for the financial year 2024-25 stood at Rs.49.83 Lakhs as against Rs.40.33 Lakhs during the financial year 2023-24. The increase in depreciation was around 23.55% which was majorly due to addition in Property, Plant and equipment during the year.
Other Expenses:
During the financial year 2024-25, the Other Expenses of the Company increased by 10.19%, from Rs.492.14 lakhs in FY 202324 to Rs.542.30 lakhs in FY 2024-25. This increase was due to increase in Power & Fuel by 14.58% from Rs.209.90 lakhs in FY
2023- 24 to Rs.240.51 lakhs in FY 2024-25, Testing Expenses increased by 122.54% from Rs.0.25 lakhs in FY 2023-24 to Rs.0.55 lakhs in FY 2024-25, Consumables & Spares increased by 10.06% from Rs.26.92 lakhs in FY 2023-24 to Rs.29.63 lakhs in FY
2024- 25, Carriage Inwards increased by 4.96% from Rs.57.96 lakhs in FY 2023-24 to Rs.60.83 lakhs in FY 2024-25, Other Charges increased by 5.72% from Rs.19.97 lakhs in FY 2023-24 to ^21.12 lakhs in FY 2024-25, Export Freight & Handling Charges increased by 57.15% from Rs.55.23 lakhs in FY 2023-24 to Rs.86.80 lakhs in FY 2024-25, Office Expenses increased by 64.06% from Rs.3.21 lakhs in FY 2023-24 to Rs.5.26 lakhs in FY 2024-25, Payment to Auditors increased by 126.99% from Rs.1.01 lakhs in FY 2023-24 to Rs.2.29 lakhs in FY 2024-25, Professional and Consulting Fees increased by 167.01% from Rs.7.65 lakhs in FY 2023-24 to Rs.20.43 lakhs in FY 2024-25, Printing and Stationery increased by 42.75% from Rs.2.14 lakhs in FY 2023-24 to Rs.3.05 lakhs in FY 2024-25, Other Miscellaneous Expenses increased by 319.56% from Rs.0.59 lakhs in FY 2023-24 to Rs.2.46 lakhs in FY 2024-25, License and Application Fees increased by 932.65% from Rs.0.14 lakhs in FY 2023-24 to Rs.1.40 lakhs in FY 202425, and Taxes & Demands increased by 25.58% from Rs.0.69 lakhs in FY 2023-24 to Rs.0.87 lakhs in FY 2024-25.
Exceptional Items
During FY 2024-25, the Company has recognised an exceptional item of income amounting to Rs.3.50 lakhs, representing a net impact of loss on account of fire damage to goods in export of Rs.77.48 lakhs, offset by an insurance claim of Rs.80.98 lakhs. This item is non-recurring in nature and not part of the ordinary course of business.
Restated Profit before tax:
Net profit before tax for the financial year 2024-25 increased to Rs.381.55 Lakhs as compared to profit of Rs.236.34 Lakhs in the financial year 2023-24. The increase of 61.44% was majorly due to factors as mentioned above.
Restated profit after tax:
Net profit after tax for the financial year 2024-25 increased to Rs.284.17 Lakhs as compared to profit of ^ 169.39 Lakhs in the financial year 2023-24. The increase of 67.76% was due to factors increase in PAT margin. The PAT margin for the financial year 2023-24 was 3.61% and the same has increased to 5.65% in the financial year 2024-25.
Information required as per Item (II)(C)(iv) of Part A of Schedule VI to the SEBI Regulations:
An analysis of reasons for the changes in significant items of income and expenditure is given hereunder:
1. Unusual or infrequent events or transactions
There has not been any unusual trend on account of our business activity. Except as disclosed in this Red Herring Prospectus, there are no unusual or infrequent events or transactions in our Company.
2. Significant economic changes that materially affected or are likely to affect income from continuing operations.
There are no significant economic changes that may materially affect or likely to affect income from continuing operations.
3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations.
Apart from the risks as disclosed under Section "Risk Factors" beginning on page 21 of the Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.
4. Future changes in relationship between costs and revenues
Other than as described in the sections "Risk Factors", "Our Business" and "Managements Discussion and Analysis of Financial Condition and Results of Operations" on pages 21, 107 and 222 respectively, to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.
5. Segment Reporting
Our business activity primarily falls within a single business segment and therefore we do not follow any other segment reporting
6. Status of any publicly announced New Products or Business Segment
Except as disclosed in the Chapter "Our Business", our Company has not announced any new product or service.
7. Seasonality of business
For Seasonality of business, see "Industry Overview" and "Our Business" on pages 96 and 107, respectively of this Red Herring Prospectus.
8. Dependence on single or few customers
During the Fiscal 2026, Fiscal 2025 and Fiscal 2024, our top 10 customers contributed approximately 52.99%, 49.30% and 50.83% our revenue from operations respectively.
9. Competitive conditions
Competitive conditions are as described under the Chapters "Industry Overview" and "Our Business beginning on pages 96 and 107 respectively of this Red Herring Prospectus.
10. Details of material developments after the date of last balance sheet i.e., March 31, 2026
After the date of last Balance sheet i.e. March 31, 2026, the following material events have occurred:
1. Our Company has approved the Audited Financial statements for the financial year ended on March 31, 2026 in the Board meeting dated July 09, 2026.
2. The Company has approved the Restated Financial Statements for the financial year ending March 31, 2026, March 31 2025 and March 31, 2024 in the Board meeting dated July 16, 2026.
CAPITALISATION STATEMENT
| Particulars | Pre-Issue | Post-Issue* |
| March 31, 2026 | ||
| Debt | ||
| Short Term Debt | 451.43 | |
| Long Term Debt (Including Current Maturity) | 139.20 | |
| Total Debt | 590.63 | |
| Shareholders Fund (Equity) | [•] | |
| Share Capital | 754.00 | |
| Reserves & Surplus | 624.83 | |
| Money Received against Share Warrants | - | |
| Total Shareholders Fund (Equity) | 1378.83 | |
| Long Term Debt/Equity | 0.10 | [•] |
| Total Debt/Equity | 0.43 | [•] |
* The corresponding post-issue figures are not determinable at this stage pending the completion of public issue and hence have not been furnished.
* The corresponding post-issue figures are not determinable at this stage pending the completion of public issue and hence have not been furnished.
Notes:
1. Short term Debts represent which are expected to be paid/payable within 12 months excluding current maturities of long term debts.
2. Long term Debts represent debts other than Short term Debts as defined above.
3. The figures disclosed above are based on restated statement of Assets and Liabilities of the Company as at March 31, 2026.
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