OF FINANCIAL POSITION AND RESULTS OF OPERATIONS
You should read the following discussion of our financial condition and results of operations together with our Restated Financial Statements which is included in this Draft Red Herring Prospectus. Our Restated Financial Information differ in certain material respects from IFRS, U.S. GAAP and GAAP in other countries, and our assessment of the factors that may affect our prospects and performance in future periods. Accordingly, the degree to which our Restated Financial Information will provide meaningful information to a prospective investor in countries other than India is entirely dependent on the readers level of familiarity with Ind AS. These regulations may also vary with ICDS, which may be material to an investors assessment of our results of operations and financial condition.
Some of the information in the following discussion, including information with respect to our plans and strategies, contain forward- looking statements that involve risks and uncertainties. You should read the section "Forward-Looking Statements" on page 19 of this Draft Red Herring Prospectus for a discussion of the risks and uncertainties related to those statements. Our actual results may differ materially from those expressed in or implied by these forward-looking statements as a result of various factors, including those described below and elsewhere in this Draft Red Herring Prospectus. Also read "Risk Factors" and "Significant Factors Affecting our Results of Operations and Financial Condition " on page 27 and 58 respectively, of this Draft Red Herring Prospectus, for a discussion of certain factors that may affect our business, financial condition or results of operations.
The information in this section has been extracted from various websites and publicly available documents from various industry sources. The data may have been re-classified by us for the purpose of presentation. None of the Company and any other person connected with the Issue have independently verified this information. Industry sources and publications generally state that the information contained therein has been obtained from believed to be reliable, but their accuracy, completeness and underlying assumptions are not guaranteed and their reliability cannot be assured. Industry sources and publications are also prepared based on information as of specific dates and may no longer be current or reflect current trends. Industry sources and publications may also base their information on estimates, projection forecasts and assumptions that may prove to be incorrect. Accordingly, investors should not place undue reliance on information.
Our Fiscal ends on March 31 of each year. Accordingly, all references to a particular Fiscal are to the 12 months ended March 31 of that year. Unless otherwise indicated, the financial information included herein is based on our Restated Financial Information included in this Draft Red Herring Prospectus. For further details, see "Financial Information " on page 178 of this Draft Red Herring Prospectus.
Overview
Purple United Sales Limited ("Purple United") is a premium fashion brand dedicated to offering high-quality, versatile apparel, footwear, and accessories for children of all ages. Founded in 2014 by Mr. Jatinder Dev Seth, our mission is to enable children to express themselves using our brand as a medium. Our ethos revolves around celebrating childhood with a strong emphasis on comfort, safety, and quality. Our flagship brand, "Purple United Kids," supports the entire journey of children up to 14 years old, offering lab-tested products made from premium materials in vibrant colors and designs for every occasion. Our operations encompass designing, developing, sourcing, marketing, and selling apparel and footwear for infants (0 to 1 year), toddlers (2 to 6 years), and older kid (7 to 14 years). We also offer a wide range of accessories and hard goods, such as strollers, etc.
We cater exclusively to the Indian market. Our extensive distribution network comprises 17 exclusive brand outlets (EBOs), multiple shop-in-shops, and a robust online presence through our website, mobile app, and major e-commerce platforms such as Myntra, Amazon, Flipkart, FirstCry, Nykaa, Hopscotch, AJIO and more. This dynamic approach allows us to maintain high purchase frequency and cater to repeat customers while continually expanding our reach. With an expected CAGR of 4.4% in the Indian kids category, we are committed to growth and excellence. Our focus on innovation, quality, and the 3FsFun, Fashion, and Functionalityensures that we simplify parenthood and keep kids safe, comfortable, and stylish.
We have the following brands registered under our Company:
"toothless" is a fashion-forward kids wear brand that tells the story of a new-age kid who is free-spirited, self-dependent, and confident.
"Thats Her Style" was created catering to the needs of Premium Fashion wear for the Girls.
"Thats His Style" was created catering to the needs of Premium Fashion wear for the Boys.
Presentation of Financial Statements
Unless stated or the context requires otherwise, the financial information in this Prospectus is derived from our Restated Financial Information, which have been prepared in terms of the requirements of Section 26 of the Companies Act, the SEBI ICDR Regulations, as amended from time to time, and the Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the ICAI. For further information on our Companys financial information, see "Financial Information" on page 183 of this Prospectus.
In this Prospectus, any discrepancies in any table between the total and the sums of the amounts listed are due to rounding off. All figures in decimals have been rounded off to the second decimal and all percentage figures have been rounded off to two decimal places. In certain instances, (i) the sum or percentage change of such numbers may not conform exactly to the total figure given; and (ii) the sum of the numbers in a column or row in certain tables may not conform exactly to the total figure given for that column or row.
Further, any figures sourced from third party industry sources may be rounded off to other than to the second decimal to conform to their respective sources.
Our Companys financial year commences on April 1 and ends on March 31 of the next year. Accordingly, all references to a particular financial year, unless stated otherwise, are to the 12-month period ended on March 31 of that year. Unless stated otherwise, or the context requires otherwise, all references to a "year" in this Prospectus are to a calendar year.
Significant Factors Affecting Our Results of Operations and Financial Condition
We believe that the following risks and uncertainties, including those discussed and detailed in the section titled "Risk Factors" beginning on page no. 27 of this Prospectus, have significantly affected our results of operations and financial condition during the periods under review, and may continue to affect our results of operations and financial condition in the future:
1. General economic and business conditions in the markets in which we operate and in the local, regional, national and international economies.
2. Failure to successfully upgrade our product portfolio, from time to time.
3. Any change in government policies resulting in increases in taxes payable by us;
4. Increased competition in the industry in which we operate.
5. Our ability to grow our business.
6. Factors affecting Fashion industry
7. Our ability to retain our key managements persons and other employees.
8. Changes in laws and regulations that apply to the industries in which we operate.
9. Companys ability to successfully implement its growth strategy and expansion plans.
10. Our failure to keep pace with rapid changes in technology.
11. Our ability to maintain our relationships with domestic as well as foreign vendors and their inability to meet our products specifications and supply our products in timely manner.
12. Failure to comply with regulations prescribed by authorities of the jurisdictions in which we operate.
13. Inability to successfully obtain registrations in a timely manner or at all.
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. Conflicts of interest with affiliated companies, the promoter group and other related parties.
17. Any adverse outcome in the legal proceedings in which we are involved.
18. Concentration of ownership among our Promoters.
19. The performance of the financial markets in India and globally.
Significant Accounting Policies under Indian GAAP
For Significant accounting policies please refer "Significant Accounting Policies to the Restated Financial Statements", under Chapter titled "Financial Information" beginning on page 183 of this Prospectus.
Principal Components of revenue and expenditure:
Income
Our total income comprises
(i) Revenue from operations; and
(ii) other income.
Revenue from operations
Revenue from operations comprises Revenue from Sale of Traded Goods.
Other income
Other income includes Interest on deposits with banks and others.
Expenses
Our expenses comprise
(i) Purchase of Stock in Trade;
(ii) Changes in inventories;
(iii) Employee benefits expense;
(iv) Depreciation and amortization expense;
(v) Finance costs and
(vi) Other expenses.
Purchase of Stock in Trade
It includes purchase of finished goods and its related directs costs.
Changes in inventories
Changes in inventories of finished goods and trading goods indicate the difference between the opening and closing inventory of traded goods.
Employee benefits expense
Employee benefits expense comprises
(i) Salaries and wages, including bonus;
(ii) contribution to provident and other funds;
(iii) staff welfare expenses; and
(iv) Gratuity expense.
Depreciation and amortization expense
Depreciation and amortization expense on property, plant and equipment.
Finance costs
Finance costs expense comprises
(i) interest on loan;
(ii) interest on deposits;
(iii) bank charges and
(iv) other fees and charges.
Other expenses
Other expenses include amongst others
(i) rent paid;
(ii) commission
(iii) license fees;
(iv) freight, loading and unloading charges;
(v) online fees;
(vi) repairs and maintenance;
(vii) legal and professional;
(viii) travelling and conveyance;
(ix) office expenses and
(x) packing expenses.
Results of Operations
The following table sets forth certain information with respect to our results of operations, on a Restated Financial basis as indicated below:
Particulars | For the year ended | % of Total Revenue | For the year ended | % of Total Revenue | For the year ended | % of Total Revenue |
31-Mar-24 | 31-Mar-23 | 31-Mar-22 | ||||
Revenue from operation | 4,277.44 | 99.67% | 2,569.45 | 99.94% | 1,651.89 | 99.74% |
Other income | 14.15 | 0.33% | 1.65 | 0.06% | 4.30 | 0.26% |
Total Income (I + II) | 4,291.59 | 100.00% | 2,571.10 | 100.00% | 1,656.19 | 100.00% |
Purchases of Traded Goods | 1,818.59 | 42.38% | 1,095.65 | 42.61% | 824.55 | 49.79% |
Changes in inventories | (234.98) | (5.48)% | (18.16) | (0.71)% | (284.97) | (17.21)% |
Employee benefits expense | 667.31 | 15.55% | 383.91 | 14.93% | 322.04 | 19.44% |
Finance costs | 234.80 | 5.47% | 150.06 | 5.84% | 104.56 | 6.31% |
Depreciation and amortisation expenses | 155.94 | 3.63% | 26.66 | 1.04% | 18.47 | 1.12% |
Other expenses | 1,053.48 | 24.55% | 724.12 | 28.16% | 554.39 | 33.47% |
Total Expenses | 3,695.14 | 86.10% | 2,362.24 | 91.88% | 1,539.04 | 92.93% |
Profit / (Loss) before Tax | 596.45 | 13.90% | 208.86 | 8.12% | 117.15 | 7.07% |
Tax Expenses | 114.91 | 2.68% | 59.64 | 2.32% | (60.01) | (3.62)% |
Net Profit after tax | 481.54 | 11.22% | 149.22 | 5.80% | 177.16 | 10.70% |
RESULTS OF OPERATIONS FOR THE YEAR ENDED MARCH31, 2024
Total Income:
Total income for the period starting from April 1, 2023, to March 31, 2024, stood at Rs4,291.59 Lakhs. The total income consists of revenue from the sale of traded goods and other income.
Revenue from Operations
During the year ended March 31, 2024, the net revenue from operation of our Company was Rs4,277.44 Lakhs. The main contribution to the revenue from operations is the sale of traded goods.
Other Income:
During the year ended March 31, 2024, the other income of our Company stood at Rs 14.15 Lakhs. The main components of the other income are interest income.
Cost of goods sold:
During the year ended March 31, 2024, the cost of goods sold by our Company stood at Rs1,583.60 Lakhs. The main components of the cost of goods sold are cost of purchase of traded goods of Rs1,818.59 Lakhs and change in inventories of traded goods of Rs234.98 Lakhs.
Employee benefits expense:
During the year ended March 31, 2024, our employee benefits expense was Rs667.31 lakhs, which included salaries, wages and bonus of Rs611.05 lakhs, contribution to provident and other funds of Rs48.53 lakhs and staff welfare expenses of Rs7.73 lakhs.
Depreciation and Amortization Expenses:
During the year ended March 31, 2024, the Depreciation and amortization charges of our Company stood at Rs 155.94 Lakhs.
Finance costs:
Our finance costs were Rs234.80 lakhs for the year ended March 31, 2024, primarily comprising interest on loans of Rs190.62 lakhs and other fees and charges (including bank charges) of Rs40.29 lakhs.
Other Expenses:
Our other expenses for the for the year ended March 31, 2024 amounted to Rs1,053.48 lakhs, which primarily included
(i) rent paid of Rs259.62 lakhs;
(ii) commission of Rs207.00 lakhs
(iii) license fees of Rs53.98 lakhs;
(iv) freight, loading and unloading charges of Rs43.44 lakhs;
(v) online fees of Rs61.96 lakhs;
(vi) repairs and maintenance of Rs89.20;
(vii) legal and professional charges of Rs68.05;
(viii) travelling and conveyance of Rs62.31 lakhs;
(ix) office expenses of Rs23.01 lakhs and
(x) packing expenses of Rs25.56 lakhs
Restated profit after tax:
As a result of the above factors, our restated profit after tax for the year ended March 31, 2024, was Rs481.54 Lakhs.
FISCAL 2024 COMPARED WITH FISCAL 2023
Set forth below is a discussion of our results of operations for financial year ended March 31, 2024, over March 31, 2023
Revenue from operations:
Revenue from operations increased from Rs2,569.45 Lakhs in year ended March 31, 2023, to Rs4,277.44 Lakhs in year ended March 31, 2024 with a resultant increase of 66.47% in year ended March 31, 2024. This is mainly due to increase in number of stores from 12 stores as at year ended March 31, 2023 to 14 stores as at year ended March 31, 2024.
Other Income:
Other Income increased from Rs1.65 Lakhs in year ended March 31, 2023, to Rs14.15 Lakhs in year ended March 31, 2024, with a percentage change of 755.18%.
Cost of goods sold:
Cost of goods sold increased from Rs1,077.49 Lakhs (41.93% of revenue) in year ended March 31, 2023, to Rs1,583.60 Lakhs (37.02% of revenue) in year ended March 31, 2024, with a percentage change of 46.97%. The decrease of 4.91% in cost as a percentage of revenue generated reflects the Companys strong relationships with suppliers.
Employee benefits expense:
Employee Benefit Expenses increased from Rs383.91 Lakhs in year ended March 31, 2023, to Rs667.31 Lakhs in year ended March 31, 2024 with a resultant increase of 73.82% in year ended March 31, 2024. This is mainly due to increase in number of employees from 111 as at year ended March 31, 2023, to 161 as at March 31, 2024. The Company also onboarded some management level employees during the year which also contributed to such a steep increase.
Finance costs:
Finance cost increased from Rs150.06 Lakhs in year ended March 31, 2023, to Rs234.80 Lakhs in year ended March 31, 2024, with a resultant increase of 56.48% in year ended March 31, 2024, due to increase in total debt from Rs1,187.42 Lakhs in year ended March 31, 2023 to Rs2,562.80 Lakhs in year ended March 31, 2024.
Depreciation and Amortization Expenses:
Depreciation and amortization increased from Rs26.66 Lakhs in year ended March 31, 2023, to Rs155.94 Lakhs in year ended March 31, 2024, with a resultant increase of 485.02% in year ended March 31, 2024, due to net additions in the gross block of property, plant and equipment by Rs238.80 Lakhs.
Other Expenses:
Other expenses increased from Rs724.12 Lakhs (28.16% of revenue) in year ended March 31, 2023, to Rs1,053.48 Lakhs (24.55% of revenue) in year ended March 31, 2024, with a resultant increase of 46.72% in year ended March 31, 2024. This is majorly on account of an increase in commission expense by Rs95.55 Lakhs, provision for bad and doubtful debts by Rs62.64 Lakhs, online fee by Rs60.61 Lakhs, rent paid by Rs57.04 Lakhs and repairs by Rs49.67 Lakhs.
Restated profit after tax:
Net Profit after tax increased from Rs149.22 Lakhs in year ended March 31, 2023, to Rs481.54 Lakhs in year ended March 31, 2024, with a resultant increase of 222.72% in year ended March 31, 2024. PAT margin increased from 5.80% in the year ended March 31, 2023, to 11.22% in year ended March 31, 2024. This is directly in relation to the decrease in cost of goods sold (purchase of traded goods and changes in inventories) and other expenses as a percentage of revenue.
FISCAL 2023 COMPARED WITH FISCAL 2022
Set forth below is a discussion of our results of operations for financial year ended March 31, 2023, over March 31, 2022
Revenue from operations:
Revenue from operations increased from Rs1,656.19 Lakhs in year ended March 31, 2022, to Rs2,571.10 Lakhs in year ended March 31, 2023, with a resultant increase of 55.24% in year ended March 31, 2023. This is mainly due to increase in number of stores from 7 stores as at year ended March 31, 2022, to 12 stores as at year ended March 31, 2023.
Other Income:
Other Income decreased from Rs4.30 Lakhs in year ended March 31, 2022, to Rs1.65 Lakhs in year ended March 31, 2023 with a percentage change of 61.53%.
Cost of goods sold:
Cost of goods sold increased from Rs539.58 Lakhs (32.66% of revenue) in year ended March 31, 2022 to Rs1,077.49 Lakhs (41.93% of revenue) in year ended March 31, 2023 with a percentage change of 99.69%. The increase of 9.27% in cost as a percentage of revenue is due to post COVID effects. Further the we engaged in private labelling for third party brands which also resulted in increased costs.
Employee benefits expense:
Employee Benefit Expenses increased from Rs322.04 Lakhs in year ended March 31, 2022, to Rs383.91 Lakhs in year ended March 31, 2023 with a resultant increase of 19.21% in year ended March 31, 2023. This is mainly due to increase in number of employees from 75 as at year ended March 31, 2022 to 111 as at March 31, 2023.
Finance costs:
Finance cost increased from Rs104.56 Lakhs in year ended March 31, 2022, to Rs150.06 Lakhs in year ended March 31, 2023, with a resultant increase of 43.51% in year ended March 31, 2024 due to increase in total debt from Rs1,105.76 Lakhs in year ended March 31, 2022 to Rs1,187.42 Lakhs in year ended March 31, 2023.
Depreciation and Amortization Expenses:
Depreciation and amortization increased from Rs18.47 Lakhs in year ended March 31, 2022, to Rs26.66 Lakhs in year ended March 31, 2023, with a resultant increase of 44.31% in year ended March 31, 2023 due to net additions in the gross block of property, plant and equipment by Rs390.81 Lakhs.
Other Expenses:
Other expenses increased from Rs554.39 Lakhs (33.47% of revenue) in year ended March 31, 2022, to Rs724.12 Lakhs (28.16% of revenue) in year ended March 31, 2023 with a resultant increase of 30.62% in year ended March 31, 2023. This is majorly on account of increase in rent paid by Rs92.43 Lakhs, freight, loading and unloading charges by Rs80.84 Lakhs, commission charges by Rs50.97 Lakhs and repairs by ^31.83 Lakhs. At the same time online fees declined by Rs104.03 Lakhs.
Restated profit after tax:
Net Profit after tax decreased from Rs177.16 Lakhs in year ended March 31, 2022, to Rs149.22 Lakhs in year ended March 31, 2023, with a resultant decrease of 15.77% in year ended March 31, 2023. The PAT margin decreased from 10.70% in year ended March 31, 2022, to 5.80% in year ended March 31, 2023. This is directly in relation to the increase in cost of goods sold (purchase of traded goods and changes in inventories).
Liquidity and Capital Resources
We operate in a capital-intensive industry and our principal liquidity requirements have been to finance our working capital needs, expenditure on account of opening new stores and our store operating expenses. Our business requires high levels of financing to develop, operate and maintain our stores. To fund these costs, we have historically relied on raising short term and long-term borrowings, including working capital financing, loans from relatedparties and others and cash generated from operating activities. Our short-term liquidity requirements relate to servicing our borrowings, operating and maintaining our stores and financing working capital requirements. Our long-term liquidity requirements include store security deposits and fit-out costs in stores.
Our primary liquidity requirements have been towards the capital expenditure incurred for opening new stores and our working capital requirements. We have met these requirements from cash flows from operations and borrowings. We expect to meet our working capital requirements for the next 12 months primarily from the cash flows of our business operations and other available financial means. As on March 31, 2024, March 31, 2023, March 31, 2022, we had cash and cash equivalents of Rs 59.62 lakhs, ^21.17 lakhs and Rs 17.41 lakhs respectively. Cash and cash equivalents consist of cash on hand, balances with banks in current accounts.
Cashflows
The following table sets forth certain information relating to our cash flows in the periods indicated:
(in Rs lakhs)
Particulars | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
Net cash generated from operating activities. | 88.54 | 355.08 | 105.65 |
Net cash (used in) investing activities. | (238.80) | (390.81) | (9.09) |
Net cash (used in)/ Generated from finance activities. | 188.69 | 39.48 | (89.10) |
Net increase in cash and cash equivalents. | 38.45 | 3.75 | 7.45 |
Cash and Cash Equivalents at the beginning of the period. | 21.17 | 17.41 | 9.96 |
Cash and Cash Equivalents at the end. | 59.62 | 21.17 | 17.41 |
Operating Activities
For Financial Year Ended March 31, 2024
Net cash generated from operating activities was Rs 88.54 lakhs in March 31, 2024. Profit before tax was Rs 596.45 lakhs in March 31, 2024. Adjustments primarily consisted of depreciation of Rs155.94 lakhs, finance costs of Rs234.80 lakhs and provision for gratuity o f Rs19.81 lakhs.
Our operating cash flow before working capital adjustments was Rs939.40 lakhs in March 31, 2024. The working capital adjustments in March 31, 2024 included decrease in trade payables of Rs624.08 lakhs, increase in other liabilities of Rs135.80 lakhs, incre ase in provisions of Rs59.07 lakhs and increase in short term borrowings of Rs1,166.49 lakhs. This was offset by increase in trade receivables of ^1,081.31 lakhs, increase in other non-current assets of Rs1.57 lakhs, increase in inventories of Rs234.98 Lakhs and decrease in loans and advances of Rs8.86 lakhs.
Taxes paid during the year amounted to Rs129.63 lakhs.
For Financial Year Ended March 31, 2023
Net cash generated from operating activities was Rs355.08 lakhs in March 31, 2023. Profit before tax was Rs208.86 lakhs in March 31, 2023. Adjustments primarily consisted of depreciation of Rs26.66 lakhs, finance costs of Rs150.06 lakhs and provision for gratuity of Rs 2.83 lakhs.
Our operating cash flow before working capital adjustments was Rs322.10 lakhs in March 31, 2023. The working capital adjustments in March 31, 2023 included increase in trade payables of Rs394.21 lakhs, increase in other liabilities of Rs73.45 lakhs, increase in provisions of Rs0.82 lakhs and increase in short term borrowings of Rs161.90 lakhs. This was offset by increase in trade receivables of Rs620.12 lakhs, increase in other non-current assets of Rs25.83 lakhs, increase in inventories of Rs18.16 Lakhs and increase in loans and advances of Rs26.77 lakhs.
Taxes paid during the year amounted to Rs22.88 lakhs.
For Financial Year Ended March 31, 2022
Net cash generated from operating activities was Rs105.65 lakhs on March 31, 2022. Profit before tax was ^117.15 lakhs in March 31, 2022. Adjustments primarily consisted of depreciation of Rs18.47 lakhs, finance costs of Rs 104.56 lakhs, provision of gratuity of Rs16.81 lakhs.
Our operating cash flows before working capital adjustments was Rs184.72 lakhs in March 31, 2022. The working capital adjustme nts in March 31, 2022 included increase in trade payables of Rs209.93 lakhs, increase in other liabilities of Rs9.04 lakhs, increase in provisions of Rs3.80 lakhs and increase in short term borrowings of Rs56.12 lakhs. This was offset by increase in trade receivables of Rs149.17 lakhs, increase in other non-current assets of Rs58.62 lakhs, increase in inventories of Rs284.97 Lakhs and decrease in loans and advances of Rs32.30 lakhs.
Taxes paid during the year amounted to Rs8.61 lakhs.
Investing Activities
For Financial Year Ended March 31, 2024
Net cash used for investing activities for the year ended March 31, 2024, was Rs238.80 lakhs. This was primarily due to the purchase of furniture and fixtures for new and existing EBOs, end user devices and motor vehicles.
For Financial Year Ended March 31, 2023
Net cash used for investing activities for the year ended March 31, 2023, was Rs390.81 lakhs. This was primarily due to purchase of furniture and fixtures for new and existing EBOs, end user devices and motor vehicles.
For Financial Year Ended March 31, 2022
Net cash used for investing activities for the year ended March 31, 2022, was Rs9.09 lakhs. This was primarily due to the purchase of furniture and fixtures for new and existing EBOs, end user devices and motor vehicles
Financing Activities
For Financial Year Ended March 31, 2024
Net cash generated from financing activities in March 31, 2024 was Rs188.69 lakhs. This was on account of interest paid of Rs234.80 lakhs, proceeds from issue of share capital (including securities premium and reserve adjustment) Rs214.60 lakhs, repayment from borrowings other than cash credit and bank overdraft of Rs208.89 lakhs.
For Financial Year Ended March 31, 2023
Net cash generated from financing activities in March 31, 2023 was Rs39.48 lakhs. This was on account of interest paid of Rs150.06 lakhs, proceeds from issue of share capital (including securities premium and reserve adjustment) of Rs269.78 lakhs, repayment from borrowings other than cash credit and bank overdraft of Rs80.24 lakhs.
For Financial Year Ended March 31, 2022
Net cash used in financing activities in March 31, 2022 was Rs89.10 lakhs. This was on account of interest paid of Rs104.56 lakhs, proceeds from issue of share capital (including securities premium and reserve adjustment) of Rs661.04 lakhs, repayment from borrowings other than cash credit and bank overdraft of Rs645.58 lakhs.
Capital Expenditure
For the financial year ended March 31, 2024, 2023, 2022, our capital expenditure was Rs238.80 lakhs, Rs390.81 lakhs and Rs9.09 l akhs respectively. This primarily consists of addition of furniture and fixtures for new and existing EBOs, end user devices and motor vehicles.
Indebtedness
As of March 31, 2024, we had long-term borrowings of Rs952.70 lakhs and short-term borrowings of Rs1,610.10 lakhs which includes secured and unsecured loans. The following table sets forth certain information relating to our outstanding indebtedness as of March 31, 2024, and our repayment obligations in the periods indicated:
(in Rs Lakhs)
Total Borrowings | Short term (less than 1 year) | Long term (more than 1 year) |
Secured (A) | 1,262.13 | 373.17 |
Unsecured (B) | 347.97 | 579.53 |
Total Borrowings (A + B) | 1,610.10 | 952.70 |
*Short term borrowings include the maturities payable within 1 year.
For further details regarding our indebtedness, see "Financial Indebtedness" and "Financial Information" on pages 201 and 183, respectively of this Prospectus.
Contingent Liabilities and Commitments
The company has no pending litigations as on March 31, 2024.
Off Balance Sheet Commitments and Arrangements
We do not have any off-balance sheet arrangements, derivative instruments, swap transactions or relationships with standalone entities or financial partnerships that would have been established for the purpose of facilitating off-balance sheet arrangements.
Related Party Transactions
We enter into various transactions with related parties in the ordinary course of business. For further information relating to our related party transactions, see "FinancialInformation" on page 183 of this Prospectus.
Changes in Accounting Policies
As on the date of this Prospectus, there are no changes in our accounting policies in the last three financial years.
Unusual or Infrequent Events or Transactions
There have been no events or transactions to our knowledge which may be described as "unusual" or "infrequent".
Significant Economic Changes
There are no significant economic changes that may materially affect or are likely to affect income from continuing operations.
Known Trends or Uncertainties
Apart from the risks as disclosed under Section "Risk Factors" beginning on page no 27 of the 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.
Future Relationships between Costs and Income
Other than as described "Risk Factors", "Our Business" and "Managements Discussion and Analysis of Financial Position and Results of Operations" on pages 27, 122, and 185 respectively of this Prospectus, to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.
New Products or New Business Segments
Except as set out in this Prospectus, we have not announced and do not expect to announce in the near future any new products or new business segments.
Seasonality of business
Our business is not seasonal in nature.
Significant Dependence on a Single or Few Customers
The revenue of our Company is not dependent on single or few customers.
Competitive Conditions
We expect competition in our industry from existing and potential competitors to intensify. For details, please refer to the discussions of our competition in "Our Business ", "Industry Overview " and "Risk Factors - We operate in a competitive industry and our failure to successfully compete may adversely affect our business, financial condition and results of operations, and prospects " on pages 122,
112, and 27 respectively of this Prospectus.
Details of material developments after the date of last balance sheet i.e., March 31, 2024
Except as stated below, there are no material developments after the date of last balance sheet i.e., March 31, 2024.
A. The Company allotted 3,72,800 Equity Shares of Rs 10/- each at a premium of Rs 72/- each on 23rd May 2024, proper resolution and valuation reports have been obtained for the same.
B. The Authorized capital of the Company was further increased from 70,00,000 Equity Shares of Rs 10/- each to 1,10,00,000 Equity Shares of Rs 10/- each vide resolution passed in EGM dated May 11, 2024.
C. The Company made below changes in its Board of Directors:
Designated Mr. Pankaj Lal Gupta as Independent director w.e.f. May 11, 2024
Designated Mr. Vishal Sharma as Independent director w.e.f. May 11, 2024
Designated Mr. Tarun Anand as Independent director w.e.f. May 11, 2024
D. The Company appointed Mr. Naresh Kumar as Chief Financial Officer w.e.f. May 01, 2024.
E. The Company appointed Mr. Vishnu Kumar as Company Secretary w.e.f. May 20, 2024.
F. Resolution passed for approving the Initial Public Offer (IPO).
Board Meeting held on 21st June, 2024
Annual General Meeting held on 08th July, 2024
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