Pranik Logistics Ltd Management Discussions

The following discussion is intended to convey managements perspective on our financial condition and results of operations for the period ended 30 June 2024 and financial year ended March 31, 2024, and for the financial year ended March 31, 2023, and 2022. One should read the following discussion and analysis of our financial condition and results of operations in conjunction with our section titled "Financial Statements" and the chapter titled "Financial Information" on page 224 of the Red Herring Prospectus. This discussion contains forward-looking statements and reflects our current views with respect to future events and our financial performance and involves numerous risks and uncertainties, including, but not limited to, those described in the section entitled "Risk Factors" on page 27 of this Red Herring Prospectus. Actual results could differ materially from those contained in any forward-looking statements and for further details regarding forward-looking statements, kindly refer the chapter titled "Forward-Looking Statements" on page 18 of this Red Herring Prospectus. Unless otherwise stated, the financial information of our Company used in this section has been derived from the Restated Financial Information. Our financial year ends on March 31 of each year. Accordingly, unless otherwise stated, all references to a particular financial year are to the 12-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to Pranik

Logistics Limited (Formerly Known as Pranik Logistics Private Limited), our Company. Unless otherwise indicated, financial information included herein are based on our Restated Financial Statements for the period June 2024, and Financial Years 2024, 2023 & 2022 included in this Red Herring Prospectus beginning on page 224 of this Red Herring Prospectus.

BUSINESS OVERVIEW

Our Company was incorporated as a Private Limited Company under the name of "Pranik Logistics Private Limited" under the Companies Act, 2013 vide certificate of incorporation dated February 24, 2015, issued by Registrar of Companies, Kolkata, bearing CIN U60231WB2015PTC205412. Further, our Company was converted into a Public Limited Company in pursuance of a special resolution passed by the members of our Company at the Extra Ordinary General Meeting held on January 15, 2024 and the name of our Company was changed from "Pranik Logistics Private Limited" to "Pranik Logistics Limited" & Registrar of Companies,

Kolkata has issued a new certificate of incorporation consequent upon conversion dated March 07, 2024, bearing CIN U60231WB2015PLC205412.

Our company is engaged as carrying and forwarding agent providing end-to-end Logistics solutions i.e. from the point of origin to the point of consumption, in order to meet the needs of our customers and corporations. We are a pan India logistics provider, acting as carrying and forwarding agent and providing integrated services including transportation, warehousing, material handling and freight forwarding to our customers belonging to various industries such as Retail, Customer Durables, Telecom, Manufacturing, Pharma, etc.

Since our establishment in 2015, we have over the period expanded the ambit of our services. We offer customized services as per the requirements of our customers. We have a dedicated team of employees and agents, who manage the entire supply chain effectively and efficiently.

As on the date of this Red Herring Prospectus, we manage a fleet of commercial vehicles, comprising more than 80 vehicles that we own, and any further requirement is managed through leasing the vehicles on trip-to-trip basis. Our fleet encompasses various types of trucks categorized by design, size, and capacity. Our

Container Trucks are utilized for parcel transportation, while Platform Trucks handle heavy-duty goods like automotive parts and machinery. For detailed information on the different vehicle categories within our fleet, please see "Our Fleet Strength" on page 167 of this Red Herring Prospectus. The diversity of our transportation vehicles allows us to cater to a wide range of consignments. Further, as on the date of this Red Herring Prospectus, we operate a total of 30 warehouses, which are directly managed by our company. For detailed information on the warehouses of the company, please refer to page 160 of this Red Herring Prospectus.

The technological systems that our company uses for managing the logistics operations are provided by our clients that enable us to improve our service quality, consistency and increase our operating efficiency. Our accounting systems also enable us to implement stringent financial controls.

We have obtained certifications from FSSAI for facilitating the delivery of perishable goods in West Bengal only. We believe that adopting and employing global standards will attract more customers to our Company.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL YEAR AND STUB PERIOD

As per mutual discussion between the Board of the Company and BRLM, in the opinion of the Board of the Company there have not arisen any circumstances since the date of the last financial statements as disclosed in the Red Herring Prospectus and which materially and adversely affect or is likely to affect within the next twelve months except as follows:

? The Board of Directors of our Company has approved and passed a resolution on May 23, 2024, to authorize the Board of Directors to raise the funds by way of Initial Public Offering. ? The Shareholders of our Company has approved and passed a resolution on May 25, 2024, to authorize the issue by way of Initial Public Offering. ? The Shareholders of our company appointed Mr. Pranav Sonthalia as Managing Director w.e.f. 22 April 2024 in the Extra- Ordinary General Meeting held on April 22, 2024. ? The shareholders of our Company appointed Ms. Shradha Kumari as Executive Director in the Extra Ordinary General Meeting held on May 25, 2024. ? The shareholders of our Company appointed Ms. Nimisha Bhadrakumar Shah and Mr. K G Raghuraman as Independent Directors in the Extra-Ordinary General Meeting held on May 24, 2024. ? The board of directors in its meeting held on April 22, 2024, appointed Mr. Avinash Saigal as Chief Executive Officer of the Company w.e.f. April 22, 2024. ? The board of directors in its meeting held on February 26, 2024, appointed Mr. Ayon Biswas as Company Secretary & Compliance officer of the Company & appointed Mr. Sujay Kundu as Chief Financial Officer of the Company w.e.f. February 26, 2024, respectively.

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled

"Risk Factor" beginning on page 27 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

? Changes, if any, in the regulations / regulatory framework / economic policies in India and / or in foreign countries, which affect national & international finance. ? Companys results of operations and financial performance; ? Performance of Companys competitors;

? Significant developments in India‘s economic and fiscal policies;

? Failure to adapt to the changing needs of industry and in particular Sector may adversely affect our business and financial condition; ? Volatility in the Indian and global capital market;

	For the period ended		For the period ended		For the period ended		For the period ended
S. No. Particulars	30 June 2024	%age of Total Income	31 March 2024	%age of Total Income	31 March 2023	%age of Total Income	31 March 2022	%age of Total Income
1 Revenue from Operations	2,230.90	99.20%	6,683.93	98.73%	6,052.70	99.38%	3,346.73	99.58%
II Other Income	17.99	0.80%	86.15	1.27%	37.92	0.62%	14.23	0.42%
III Total Income (I + II)	2,248.89	100.00%	6,770.08	100.00%	6,090.62	100.00%	3,360.96	100.00%
IV Expenses
(a) Cost of Material Consumed	-	0.00%	-	0.00%	-	0.00%	-	0.00%
(b) Purchases of Stock-in-Trade	-	0.00%	-	0.00%	-	0.00%	-	0.00%
(c) Changes in Inventories of
Finished Goods, work in	-	0.00%	-	0.00%	-	0.00%	-	0.00%
Progress and Stock in Trade
(d) Employee Benefits Expenses	292.03	12.99%	1,208.46	17.85%	810.27	13.30%	440.02	13.09%
(e) Finance Costs	33.42	1.49%	171.04	2.53%	81.10	1.33%	23.21	0.69%
(f) Depreciation and Amortisation Expenses	54.11	2.41%	206.10	3.04%	128.66	2.11%	26.35	0.78%
(g) Other Expenses	1,723.93	76.66%	4,627.43	68.35%	4,935.21	81.03%	2,823.33	84.00%
Total Expenses	2,103.49	93.53%	6,213.03	91.77%	5,955.24	97.78%	3,312.91	98.57%
V Profit before exceptional and extraordinary items and tax (III - IV)	145.40	6.47%	557.05	8.23%	135.38	2.22%	48.05	1.43%
VI Exceptional Items &
	-	0.00%	-	0.00%	-	0.00%	-	0.00%
Extraordinary items
VII Profit Before Tax (V + VI)	145.40	6.47%	557.05	8.23%	135.38	2.22%	48.05	1.43%
VIII Tax Expense:
(a) Current Tax	39.52	1.76%	157.61	2.33%	41.04	0.67%	15.65	0.47%
(b) Mat Credit Entitlement	-	0.00%	-	0.00%	-	0.00%	-	0.00%
(c) Deferred Tax	-3.03	-0.13%	-7.12	-0.11%	1.11	0.02%	0.86	0.03%
Total Tax Expense	36.50	1.62%	150.49	2.22%	42.15	0.69%	16.51	0.49%
IX Profit After Tax (VII - VIII)	108.90	4.84%	406.56	6.01%	93.23	1.53%	31.54	0.94%
X Earnings Per Share (of Rs. 10 each):
(a) Basic	1.35		7.54		1.73		1.21
(b) Diluted	1.35		7.54		1.73		1.21

Our Significant Accounting Policies

For Significant accounting policies please refer Significant Accounting Policies", under Chapter titled Financial Statements beginning on page 232 (Annexure IV) of the Red Herring Prospectus.

Overview of Revenue & Expenditure

The following discussion on results of operations should be read in conjunction with the Restated Financial statements for the period ending on June 30, 2024, Financial years 2023- 2024, Financial years 2022- 2023 & Financial Year 2021-22. Our revenue and expenses are reported in the following manner:

Revenues

? Revenue of operations

Our Companys revenue is primarily generated from Carrying & Forwarding Agents, Godown Rent Charges, SPA Charges, Manpower Charges, and Storage & Warehouse.

? Other Income

Other Income includes interest income on fixed deposit, income on security deposit, Misc Income & Discount Received.

Expenditure

Our total expenditure primarily consists of Employee benefit expense, Finance Costs, Depreciation and amortization expense, and Other Expenses.

? Employee benefit expense

The Employee benefit expense includes Salaries and wages, Directors Remuneration and Staff welfare expenses

? Finance Cost

Finance cost expense include interest on Vehicle Loan, Axis Corporate Loan, HDFC Cash Credit Loan, Tata Motors Finance Ltd Corporate Loan.

? Depreciation and Amortization Expenses

Depreciation and Amortization Expenses majorly includes depreciation on Furniture & Fixtures, Vehicles,

Computers and Office Equipments.

? Other Expenses

Other Expenses include major expenses on freight and forwarding, Power and Fuel, Rent includes Lease rentals, Travelling and conveyance, Office Expenses, Repair and maintenance, miscellaneous Expense & insurance and entertainment expense.

Revenues

? Total Income

Total Income for the period ended June 30, 2024, stood at Rs. 2,248.89 lakhs.

? Revenue from operations

Revenue from operation for the period ended June 30, 2024, stood at Rs. 2,230.90 lakhs which is 99.20% of the Total Income.

? Other Income

Other Income for the period ended June 30, 2024, stood at Rs. 17.99 lakhs, which is 0.80% of the Total Income.

Expenditure

? Total Expenses

Total Expenses for the period ended June 30, 2024, stood at Rs. 2,103.49 lakhs which is 93.53% of the Total Income which includes Employment Benefit Expenses, Finance Cost, Depreciation and Amortization expenses and Other Expenses.

? Employment Benefit Expenses

Employment Benefit Expenses for the period ended June 30, 2024, stood at Rs. 292.03 lakhs which is 12.99% of the Total Income which includes Salaries and wages, Staff welfare expenses, Director Remuneration.

? Finance Cost

Finance Cost for the period ended June 30, 2024, stood at Rs. 33.42 lakhs which is 1.49% of the Total Income which includes Interest on Vehicle Loan, Axis Corporate Loan, HDFC Cash Credit Loan, and Tata Motors Finance Ltd Corporate Loan.

? Depreciation and Amortization Expenses

Depreciation and Amortization Expenses for the period ended June 30, 2024, stood at Rs. 54.11 lakhs which is 2.41% of the Total Income which include Furniture & Fixtures, Vehicles, Computers and Office

Equipments.

? Other Expenses

Other Expenses for the period ended June 30, 2024, stood at Rs. 1,723.93 lakhs which is 76.66% of the Total Income which includes Freight & Forwarding, Power & Fuel, Rent including lease rentals, Office Expenses, Travelling & Conveyance, Repair and maintenance and Miscellaneous Expense, which is 86.27%, 5.66%, 3.78%, 0.30%, 0.68%, 0.99%, and 0.62% respectively of the Total other expenses.

? Restated Profit before Tax

Restated profit before tax for the period ended June 30, 2024, stood at Rs. 145.40 lakhs which is 6.47% of the Total Income.

? Tax Expense

Tax Expense for the period ended June 30, 2024, stood at Rs. 36.50 lakhs out of which Current Tax being Rs. 39.52 lakhs and Deferred Tax being Rs. (3.03) lakhs which is 1.76% and (0.13%) respectively of the Total Income.

? Restated Profit after Tax

Restated profit after tax for the period ended June 30, 2024, stood at Rs. 108.90 lakhs which is 4.84% of the Total Income.

PERIOD ENDED MARCH 31, 2024, COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2023 (BASED ON RESTATED FINANCIAL STATEMENTS)

Revenues

? Total Income

Total Income for the year ended March 31, 2024, stood at Rs. 6,770.08 Lakhs whereas in Financial Year 2022-23 it stood at Rs 6,090.62 Lakhs representing an increase of 11.16%.

Reason: The increase in total income of the company is due to a significant increase in the revenue of the company and general growth in the business operations of the Company.

? Revenue of operations

Net revenue from operations for the year ended March 31, 2024, stood at Rs. 6,683.93 Lakhs whereas in Financial Year 2022-23 it stood at Rs. 6,052.70 Lakhs representing an increase of 10.43%.

Reason: The significant rise in revenue from operations in the financial year 2023 as compared to the financial year 2022 is primarily due to increased revenue in our carrying and forwarding services.

(Rupees in Lakhs)

Particulars	March 31, 2024	March 31, 2023	%age Increase
Carrying and forwarding	5,831.28	5,249.92	11.07%
% of Revenue from operations	87.24%	86.74%	-
Total revenue from operations	6,683.93	6,052.70	10.43%

The above table indicates that the percentage increase in Revenue from Operations for the financial year 2024 is due to an increase in orders within the Carrying and Forwarding services. This growth is driven by our strategy of initially engaging with large corporate clients on a smaller scale and gradually expanding our service area as we prove our capability, and as the market expanded, our revenue grew accordingly.

? Other Income

Other Income for the year ended March 31, 2024, stood at Rs. 86.15 Lakhs whereas in the Financial Year 2022-23 it stood at Rs. 37.92 Lakhs representing an increase of 127.19%.

Reason: The Increase in other income is due to increase in Interest on fixed deposits, Misc Income and Discount received during this year.

? Total Expenses

Total Expenses for the year ended March 31, 2024, stood at Rs. 6,213.03 Lakhs whereas in the Financial Year 2022-23 it stood at Rs 5,955.24 Lakhs representing an increase of 4.33%.

Reason: Total Expenses for the Financial Year ending on March 31, 2024, was increase by 4.33% due to growth in revenue. This rise can be attributed to the increase in various factors, including an increase in the Employee benefit expenses, Finance cost, Depreciation and amortization expenses.

? Employee benefit expense

The Employee benefit expense for the year ended March 31, 2024, stood at Rs. 1,208.46 Lakhs whereas in Financial Year 2022-23 it stood at Rs. 810.27 Lakhs representing an increase of 49.14%.

Reason: There has been a significant increase in Employee benefit expenses in the financial year 2024 as compared to financial year 2023. The increase in the salary and wages of employees.

(Rupees in lakhs)

Particulars	March 31, 2024	March 31, 2023	%age Increase
Salaries and Wages	1,160.37	767.45	51.20%
Directors Remuneration	29.50	15.70	87.90%
Staff Welfare Expenses	18.59	27.12	-31.45%
Employee Benefit expenses	1,208.46	810.27	49.14%

? Finance Cost

The Finance Cost for the year ended on March 31, 2024, stood at Rs. 171.04 Lakhs whereas in the Financial Year 2022-23 it stood at Rs. 81.10 Lakhs representing an increase of 110.90% from the previous years.

Reason: This increase is primarily due to the increase in both Long term borrowings and short term borrowings, hence it interest was also increased and Vehicles loan is also taken more as compare to last year.

(Rupees in lakhs)

Particulars	March 31, 2024	March 31, 2023
Long Term Borrowings	201.59	189.38
Short Term Borrowings	1,582.36	1,192.71
Total Borrowings	1,783.95	1,382.09
%age increase	29.08%

? Depreciation and Amortization Expenses

The Depreciation and Amortization Expenses for the year ended March 31, 2024, stood at Rs. 206.10 Lakhs whereas in the Financial Year 2022-23 it stood at Rs. 128.66 Lakhs representing an increase of 388.28%.

Reason: This increase is primarily due to the purchase of fixed assets which includes mainly Vehicles, furniture, computer, office Equipments resulting in increase of Depreciation Expenses. In FY 23, assets or vehicles were purchased in the last quarter, meaning the significant impact of depreciation will be felt in the next financial year.

(Rupees in lakhs)

Particulars	March 31, 2024	March 31, 2023
Total Addition During the year	189.12	358.34
Closing Balance	612.51	831.80
%age increase	35.80%

? Other Expenses

The Other Expenses for the year ended March 31, 2024, stood at Rs. 4,627.43 Lakhs whereas in Financial Year 2021-22 it stood at Rs. 4,935.21 Lakhs representing a decrease of 6.24%.

Reason: All other expenses increased due to increase in revenue expenses which are Power & Fuel, Rent including lease rentals, Office Expenses, Travelling & Conveyance, Office Expenses, Bank Charges, Repair and maintenance, miscellaneous Expense and Motor insurance but there is a major component of other expenses that is Freight and forwarding because our company purchases its own vehicles which causes direct impact on decrease in freight and forwarding charges. Hence, our overall other expense decreases.

(Rupees in lakhs)

Particulars	March 31, 2024	March 31, 2023	%age Increase
Power & Fuel	387.00	258.98	49.43%
Rent including lease rentals	157.49	125.35	25.64%
Freight & forwarding	3,788.12	4,338.95	-12.70%
Bank Charges	6.61	2.69	145.72%
Travelling & Conveyance	65.81	23.06	185.39%
Motor Car Insurance	26.24	15.67	67.45%
Office Expenses	76.82	78.06	-1.59%
Repairs & Maintenance	38.13	27.01	41.17%
Total Other Expenses	4,627.42	4,935.21	-6.24%

? Restated Profit before Tax

The restated profit before tax for the year ended March 31, 2024, stood at Rs. 557.05 Lakhs whereas in Financial Year 2022-23 it stood at Rs. 135.38 Lakhs representing an increase of 311.47%.

? Tax Expense

Tax Expense for the year ended March 31, 2024, stood at Rs. 150.49 lakhs out of which Current Tax being Rs. 157.61 lakhs and Deferred Tax being Rs. (7.12) lakhs whereas in financial year 2022-23 it stood at Rs. 42.15 Lakhs out of which Current Tax being Rs. 41.04 and Deferred Tax being Rs. 1.11 Lakhs representing as increase of 257.03%.

Reason: The major reason for the increase in Tax is due to increase in revenue and decrease in freight and forwarding expenses causes decrease in total other expenses, hence increase in profit before tax.

? Restated Profit after Tax

The restated profit after tax for the year ended March 31, 2024, stood at Rs. 406.56 Lakhs whereas in Financial Year 2022-23 it stood at Rs. 93.23 Lakhs representing an increase of 336.08%.

Reason: The increase in the profit after tax is attributed to:

1. Introduction of new carrying and forwarding agents leading to more revenue and more profits

2. Effective cost control, resource optimization, and streamlined operations has led to improved cost-effectiveness and higher profit margins. We have diligently managed expenses like decrease in cost of transportation & Godown rent is also decrease and business promotion cost is also decreased.

3. Purchasing vehicles helps our company save on costs like freight and forwarding charges. By having owned vehicles, the expenses related to shipping and logistics reduces. This reduction in costs translates to higher profit margins, allowing the company to retain more earnings from its operations. The Increase in Owned vehicles over the last 3 financial year and during the stub period is given hereinbelow:

Particulars	March 2024	March 2023	March 2022
Owned Vehicles	76	58	37
YOY Additions	18	21	33

The companys long- term model is to reduce dependency on third party vendors and eventually move to own fleets that would not only save costs in many ways but also the fleet is available at any given point of time. This is also a major reason that the company is planning to do Capital Expenditure in Technology to build an online integrated system to synchronize everything and owning plant and machinery in warehouses also.

Thid party vendors, whose services are rendered by the company to complete deliveries charge are also local logistics provider who charge margin upon their costs. Thus, eventually though it would be a challenging task but to move to 100% own fleet and all linked to technology, the company would be doing greater margins which are visible from the numbers as stated below.

Analysis of PAT Margin vs Related Expenses is here under:

FY 2022-23 vs FY 2023-24

(Rupees in lakhs)

Particulars	March 2024	March 2023
Revenue from Operations	6,683.93	6,052.70
PAT	406.56	93.22
PAT Margin	6.01%	1.54%

The proportionate decrease in freight and forwarding charges to revenue from operations for the financial year 2024 as compared to financial year 2023 are as follows:

(Rupees in lakhs)

Particulars	March 2024	March 2023
Freight and forwarding charges	3,788.12	4,338.95
Revenue from operations	6,683.93	6,052.70
%age of Revenue	56.68%	71.69%
Proportionate increase/ decrease (%)	(15.01%)

Revenues

? Total Income

Total Income for the year ended March 31, 2023, stood at Rs. 6,090.62 Lakhs whereas in Financial Year 2021-22 it stood at Rs 3,360.96 Lakhs representing an increase of 81.22%.

Reason: The increase in total income of the company is due to a significant increase in the revenue of the company and general growth in the business operations of the Company.

? Revenue of operations

Net revenue from operations for the year ended March 31, 2023, stood at Rs. 6,052.70 Lakhs whereas in Financial Year 2021-22 it stood at Rs. 3,346.73 Lakhs representing an increase of 80.85%.

Reason: The significant rise in revenue from operations in the financial year 2023 as compared to the financial year 2022 is primarily due to increased revenue in our carrying and forwarding services.

(Rupees in Lakhs)

Particulars	March 31, 2023	March 31, 2022	%age Increase
Carrying and forwarding	5249.92	2,718.48	93.12%
% of Revenue from operations	86.74%	81.23%	-
Total revenue from operations	6,052.70	3,346.73	80.85%

The above table indicates that the percentage increase in Revenue from Operations for the financial year 2023 is due to an increase in orders within the Carrying and Forwarding services. This growth is driven by our strategy of initially engaging with large corporate clients on a smaller scale and gradually expanding our service area as we prove our capability. Over time, these clients have entrusted us with larger or new regions for Carrying and Forwarding operations. Additionally, our ability to offer a comprehensive, one-stop solution has contributed significantly to this revenue success. It is noteworthy that the Carrying and Forwarding services remains the predominant source of our revenue from operations.

? Other Income

Other Income for the year ended March 31, 2023, stood at Rs. 37.92 Lakhs whereas in the Financial Year 2021-22 it stood at Rs. 14.23 Lakhs representing a increase of 166.52%.

Reason: The Increase in other income is due to increase in Interest on fixed deposits.

Expenditure

? Total Expenses

Total Expenses for the year ended March 31, 2023, stood at Rs. 5,955.24 Lakhs whereas in the Financial Year 2021-22 it stood at Rs 3,312.91 Lakhs representing an increase of 79.76%.

Reason: Total Expenses for the Financial Year ending on March 31, 2023, have witnessed a notable increase of 79.76%. This rise can be attributed to the increase in various factors, including an increase in the Employee benefit expenses, Finance cost, Depreciation and amortization expenses and other expenses.

? Employee benefit expense

The Employee benefit expense for the year ended March 31, 2023, stood at Rs. 810.27 Lakhs whereas in Financial Year 2021-22 it stood at Rs. 440.02 Lakhs representing an increase of 84.14%.

Reason: There has been a significant increase in Employee benefit expenses in the financial year 2023 as compared to financial year 2022 due to an increase in salary and wages of employees and Staff Welfare Expense. The same can be inferred from the below table:

(Rupees in lakhs)

Particulars	March 31, 2023	March 31, 2022	%age Increase
Salaries and Wages	767.45	410.23	87.08%
Directors Remuneration	15.70	11.40	37.72%
Staff Welfare Expenses	27.12	18.39	47.47%
Total expenses	5,955.24	3,312.91	79.76%

? Finance Cost

The Finance Cost for the year ended on March 31, 2023, stood at Rs. 81.10 Lakhs whereas in the Financial Year 2021-22 it stood at Rs. 23.21 Lakhs representing an increase of 249.37% from the previous years.

Reason: This increase in finance costs is primarily due to the increase in HDFC cash credit loan. Hence the interest amount incurred on the same was also increased. Further, the amount on vehicle loan has increased as compared to the previous financial year ended 2022.

? Depreciation and Amortization Expenses

The Depreciation and Amortization Expenses for the year ended March 31, 2023, stood at Rs. 128.66 Lakhs whereas in the Financial Year 2021-22 it stood at Rs. 26.33 Lakhs representing an increase of 388.28%.

Reason: This increase is primarily due to the purchase of fixed assets which includes mainly Vehicles, furniture, computer, office Equipments resulting in increase of Depreciation Expenses.

? Other Expenses

The Other Expenses for the year ended March 31, 2023, stood at Rs. 4,935.91 Lakhs whereas in Financial Year 2021-22 it stood at Rs. 2823.33 Lakhs representing an increase of 74.80%.

Reason: Major increase in other expenses could be seen due to increase in the Freight & Forwarding charges, Power & Fuel, Rent including lease rentals, Office Expenses, Repair and maintenance, miscellaneous Expense & Motor insurance and entertainment expense. The same can be inferred from the below table:

(Rupees in lakhs)

Particulars	March 31, 2023	March 31, 2022	%age Increase
Power & Fuel	258.98	106.46	143.26%
Rent including lease rentals	125.35	110.26	13.69%
Freight & forwarding	4,338.95	2,493.25	74.03%
Bank Charges	2.69	0.74	266.50%
Filing Fees	1.97	0.02	10819.72%
Motor Car Insurance	15.67	2.93	434.75%
Office Expenses	78.06	5.79	1248.16%
Repairs & Maintenance	27.01	2.63	928.61%
Total	4848.68	2722.08

? Restated Profit before Tax

The restated profit before tax for the year ended March 31, 2023, stood at Rs. 135.38 Lakhs whereas in Financial Year 2021-22 it stood at Rs. 48.05 Lakhs representing an increase of 181.75%.

? Tax Expense

Tax Expense for the year ended March 31, 2023, stood at Rs. 42.15 lakhs out of which Current Tax being Rs. 41.05 lakhs and Deferred Tax being Rs. 1.11 lakhs whereas in Financial year 2021-22 it stood at Rs. 16.51 Lakhs out of which Current Tax being Rs. 15.65 and Deferred Tax being Rs. 0.86 Lakhs representing as increase of 155.38%.

Reason: The major reason for the increase in Tax is due to increase in revenue and constant growth of company.

? Restated Profit after Tax

The restated profit after tax for the year ended March 31, 2023, stood at Rs. 93.22 Lakhs whereas in Financial Year 2021-22 it stood at Rs. 31.54 Lakhs representing an increase of 195.55%.

Reason: The increase in the profit after tax is attributed to:

1. Effective cost control, resource optimization, and streamlined operations have led to improved cost-effectiveness and higher profit margins.

2. Despite consistent fixed costs for the company, the allocation of shared costs decreased due to increased revenue, resulting in higher Profit After Tax (PAT).

3. With the increase in revenue from operations for the financial year ended 2023, the expenses for the same financial year have not been increase in the same proportion as the revenue. We have diligently managed to control our expenses like the cost of transportation & Godown rent and business promotion cost.

Analysis of PAT Margin vs Related Expenses is here under:

FY 2021-22 vs FY 2022-2023

(Rupees in lakhs)

Particulars	March 2023	March 2022
Revenue from Operations	6,052.70	3,346.73
PAT	93.22	31.54
PAT Margin	1.54%	0.94%

The proportionate decrease in freight and forwarding charges to revenue from operations for the financial year 2023 as compared to financial year 2022 are as follows:

(Rupees in lakhs)

Particulars	March 2023	March 2022
Freight and forwarding charges	4,338.95	2,493.25
Revenue from operations	6,052.70	3,346.73
Proportionate increase/ decrease (%)	71.69%	74.50%

INFORMATION REQUIRED AS PER ITEM (II) (C) (I) OF PART A OF SCHEDULE VI TO THE SEBI REGULATIONS:

1. Unusual or infrequent events or transactions

Except as described in this Red Herring Prospectus, during the periods under review there have been no transactions or events, which in our best judgment, would be considered unusual or infrequent.

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

Other than as described in the section titled Risk Factors beginning on page 27 of this Red Herring Prospectus, to our knowledge there are no known significant economic changes that have or had or are expected to have a material adverse impact on revenues or income of our Company 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.

Other than as described in this Red Herring Prospectus, particularly in the sections Risk Factors and Managements Discussion and Analysis of Financial Condition and Results of Operations on pages 27 and 257, respectively, to our knowledge, there are no known trends or uncertainties that are expected to have a material adverse impact on our revenues or income from continuing operations.

4. Income and Sales on account of major product/main activities

The income and sales of our Company on account of major activities derives from the business is carrying and forward activities.

5. Future changes in the relationship between costs and revenues, in case of events such as future increase in cost of service and freight & forwarding expenses that will cause a material change are known.

Our Companys future costs and revenues can be indirectly impacted by an increase in the cost of services and freight & forwarding expenses.

6. Future relationship between Costs and Income

Our Companys future costs and revenues will be determined by competition, demand/supply situation, interest rates quoted by banks & others.

7. The extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or services or increased sales prices.

Increases in our revenues are by and large linked to increases in the volume of business.

8. Total turnover of each major industry segment in which the issuer company operates.

The Company operates in the Logistics Industry. Relevant industry data, as available, has been included in the chapter titled "Our Industry" beginning on page 123 of this Red Herring Prospectus.

9. Status of any publicly announced new products or business segments.

Our Company has not announced any new services and segment / scheme, other than disclosure in this Red Herring Prospectus.

10. The extent to which the business is seasonal.

Our business is not seasonal in nature.

11. Competitive Conditions

We face competition from existing and potential competitors, which is common for any business. We have, over a period of time, developed certain competitive strengths which have been discussed in the section titled Our Business on page 154 of this Red Herring Prospectus.