Purple Wave Infocom Ltd Management Discussions

(10) Net Capital Turnover Ratio is calculated as revenue from operations divided by working capital

SIGNIFICANT DEVELOPMENTS AFTER JUNE 30, 2024

In the opinion of the Board of Directors of our Company, since the date of the stub period as disclosed in this Red Herring Prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months.

Our financial condition and results of operations are affected by numerous factors and uncertainties, including those discussed in the section titled "Risk Factors" on page 30. The following is a discussion of certain factors that have had, and we expect will continue to have, a significant effect on our financial condition and results of operations:

We are highly dependent on certain key customers for a substantial portion of our revenues. Loss of relationship with any of these customers may have a material adverse effect on our profitability and results of operations;

Our Company has not entered into any long-term contracts with our customers and we typically operate on the basis of orders received on hand. Inability to maintain regular order flow would adversely impact our revenues and profitability;

Our business and profitability heavily rely on the consistent and timely availability of finished products. Any disruption in supply or price volatility of these products can negatively impact our operations and financial health. Additionally, our dependence on third-party suppliers, without firm supply commitments or exclusive arrangements, poses a risk. The loss of any suppliers could adversely affect our business, operational outcomes, and financial condition;

Our future growth is dependent upon our ability to identify and maintain new products, technologies and customers that achieve market acceptance with acceptable margins;

Our business is dependent on suppliers/manufacturers effectively maintaining, promoting or developing their brands and maintaining standard quality products including launching new AV (Audio-Video) products at regular intervals;

Most projects we operate have been awarded primarily through a competitive bidding process and our financial performance is largely dependent on our successful bidding for new projects. We may not always be able to qualify for, compete and win projects. If we are not able to successfully bid for new projects, it may adversely affect our business operations and financial conditions;

Any Penalty or demand raised by statutory authorities in future will affect financial position of the Company;

There are certain discrepancies/errors/delay filings noticed in some of our corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate or any other law could impact the financial position of the Company to that extent;

Our revenue is heavily reliant on our operations within certain geographical regions. Any adverse developments, such as economic downturns, political instability, or natural disasters, in these regions could significantly impact our revenue and overall financial performance;

We could be subject to product liability claims, refunds and recalls or return of products, warranty claims which may have a material adverse impact, in which case our business and revenues, and ultimately our reputation, could be negatively affected;

Any disruption or shutdown of our warehouse facilities, could adversely affect our business, results of operations and financial condition ;

Our Company has entered into related party transactions in the past and may continue to enter into related party transactions in the future, which may potentially involve conflicts of interest with the equity shareholders.

The accounting policies have been applied consistently to the periods presented in the Restated Financial Statements. For details of our significant accounting policies, please refer section titled "Financial Information" on page 189.

Except as mentioned in chapter "Financial Information" on page 189, there has been no change in accounting policies in last 3 years.

For details, see section titled "Financial Information" on page 189.

(in Lakhs)

Following are the details of "Property, Plant & Equipment and Intangible Assets":

Company has purchased Office Equipment of 9.43 lakhs, Computers of 4.90 lakhs, Vehicles of 54.52 lakhs in Fiscal 2025, which has contributed to overall increase in Property, Plant & Equipment and Intangible Assets in Fiscal 2025.

Long-Term Loan & Advances includes Unsecured Security deposits and Other loans & Advances, details of which are as follows:

(Rs. in Lakhs)

Inventories have increased in Fiscal 2025 mainly due to increase in Purchases of Stock in Trade in Fiscal 2025.

(Rs. in Lakhs)

Short-Term Loan & Advances include Advance Recoverable in Cash or Kind and Other loans & Advances, details of which are as follows:

(Rs. in Lakhs)

Other Non-Current Assets has increased on account of increase in Fixed Deposits with Banks, details of which are as follows:

(Rs. in Lakhs)

Trade receivables include dues from customers remaining unpaid, Companys receivables have increased in Fiscal 2025 in line with growing operations of the company, following are details of Trade receivables of the company

(Rs. in Lakhs)

Companys Long-Term Borrowings have increased in Fiscal 2025 to finance the growing operations of the company, following are details of Long-Term borrowings of the company:

(Rs. in Lakhs)

Companys Short-Term Borrowings have increased in Fiscal 2025 to finance the growing operations of the company and mainly includes Current maturities of long-term debt (Secured) and Loan Repayable on Demand (Secured) following are details of Short-Term Borrowings of the company:

(Rs. in Lakhs)

Trade payables include dues payables to creditors for goods & services, Companys payables in Fiscal 2025 have increased in line with growing expenses of the company, following are details of Trade Payables of the company:

(Rs. in Lakhs)

Other Current Liabilities include Statutory Dues payable, Advance from Customers & Other Liabilities, it has increased mainly on account of increase in advances from customer details of which are as follows:

(Rs. in Lakhs)

Following are the details of "Property, Plant & Equipment and Intangible Assets" which have decreased on account of depreciation:

( in Lakhs)

Long-Term Loan & Advances include Unsecured Security deposits and Other Loans & Advances, details of which are as follows:

(Rs. in Lakhs)

Inventories have increased in Fiscal 2024 Mainly Due to increase in Purchases of Stock in Trade in Fiscal 2024.

(Rs. in Lakhs)

Short-Term Loan & Advances include Advance Recoverable in Cash or Kind, Balance with Govt Authorities and Other loans & Advances, details of which are as follows, they have decreased in Fiscal 2024 as company had given an advance to customer in Fiscal 2023, purchase of which was booked in Fiscal 2024:

(Rs. in Lakhs)

Other Non-Current Assets include Fixed Deposits with Banks and Preliminary Expenses, details of which are as follows:

Trade receivables include dues from customers remaining unpaid, Companys receivables have increased in Fiscal 2024 in line with growing operations of the company, following are details of Trade receivables of the company

(Rs. in Lakhs)

Companys Long-Term Borrowings have decreased in Fiscal 2024 as company has increased its short term borrowings, following are details of Long-Term borrowings of the company:

(Rs. in Lakhs)

Companys Short-Term Borrowings have decreased in Fiscal 2024 And mainly includes Current maturities of long-term debt (Secured), Loan Repayable on Demand (Secured) and Current maturities of long-term debt (Unsecured) following are details of Short-Term Borrowings of the company, they were increased to finance the growing operations of the company:

(Rs. in Lakhs)

Trade payables include dues payables to creditors for goods & services, Companys payables in Fiscal 2024 have increased in line with growing operations of the company, following are details of Trade Payables of the company:

(Rs. in Lakhs)

Other Current Liabilities include Statutory Dues payable, Advance from Customers & Other Liabilities, details of which are as follows, it has decreased as company had received a one time advance from customer sale of which was booked in Fiscal 2024:

PRINCIPAL COMPONENTS OF OUR STATEMENT OF PROFIT AND LOSS ACCOUNT REVENUE.

The following descriptions set forth information with respect to the key components of the Restated Financial Statements.

Our revenue comprises of:

Our revenue from operations consists of Sale of Products & Services including Audio Video Integration service, Direct selling and distribution of Pro AV products and After-sales services.

Other income includes Interest Income, Foreign Exchange Gain or Loss and Balances w/off.

Our expenses comprise (i) Cost of Material Consumed; (ii) Employee benefit expenses; (iii) Finance costs; (iv) Depreciation and amortisation expense; and (vii) Other expenses.

The cost of material consumed includes purchase of goods and direct expenses.

Employee benefit expenses consist of salaries and wages, staff welfare expenses, Director Sitting Fees, Contribution to Provident Fund and Other Funds and Remuneration to Directors.

Finance costs consist of Interest paid on borrowings, Bank charges & Processing Fees.

We recognize Depreciation and Amortization expense on a WDV basis as per the rates set forth in the Companies Act, 2013/ Companies Act, 1956, as applicable. Depreciation and amortization expenses consists of depreciation on tangible assets which includes furniture and fixtures, office equipment, computers and vehicle.

Other expenses consists of advertisement expenses, auditors remuneration, bad debts w/off, donation expenses, insurance expenses, legal and professional fees, software maintenance expense, CSR expenses, miscellaneous expenses, office expenses, packing & courier charges, printing & stationery expenses, power & fuel, rent expense, repair and maintenance expenses, telephone & internet expenses, traveling & conveyance and web service expenses.

Tax expense comprises of current tax expenses and deferred tax. Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with applicable tax rates and the provisions of applicable tax laws. Deferred tax liability or credit is recognized based on the difference between taxable profit and book profit due to the effect of timing differences and treatment of expenses. Our deferred tax is measured based on the applicable tax rates and tax laws that have been enacted or substantively enacted by the relevant balance sheet date.

The following table sets forth select financial data derived from our restated statement of profit and loss for the period ended June 30, 2025 and Fiscals 2025, 2024 and 2023, and we have expressed the components of select financial data as a percentage of total income for such period / years:

Our total revenue for the Three months period ended June 30, 2025 was 3,590.64 lakhs. Total revenue comprises of:

Our revenue from operations for the Three months period ended June 30, 2025 was 3,587.93 lakhs. Our revenue from operations consists of sales of goods and services as detailed below:

Our Other Income for the Three months period ended June 30, 2025 was 2.71 lakhs. Other income includes Interest Income of 1.39 lakhs, Foreign Exchange Gain of 0.75 lakhs & Discount income of 0.57 lakhs.

Our total expenditure for the Three months period ended June 30, 2025 was 3,111.91 lakhs. Our expenditure comprise (i) cost of material consumed; (ii) employee benefit expenses; (iii) finance costs; (iv) depreciation and amortisation expense; and (vii) Other expenses.

The cost of material consumed for the Three months period ended June 30, 2025 was 2,748.11 lakhs. Cost of material comprises of Purchases of 3,141.76 lakhs, Direct expenses of 37.73 lakhs and Change in Inventory of ( 431.38 lakhs) (i.e. Opening Inventory of 1283.78 lakhs less Closing Inventory of 1715.16 lakhs).

Employee benefit expense for the Three months period ended June 30, 2025 was 179.49 lakhs. Employee benefit expense consists of salaries and wages of 140.86 lakhs, Staff welfare of 2.84 lakhs, Contribution to provident fund and other funds of 6.35 lakhs, directors remuneration of 26.52 lakhs, and gratuity expenses amounting to 2.91 lakhs.

Finance cost for the Three months period ended June 30, 2025 was 39.36 lakhs. Finance cost comprises bank charges & processing charges of 5.22 lakhs and interest paid on borrowings of 34.14 lakhs.

Depreciation and amortization expense for the Three months period ended June 30, 2025 was 8.65 lakhs.

Other expenses for the Three months period ended June 30, 2025 was 136.29 lakhs. Other expenses consist of Advertisement expenses of 8.12 lakhs, Auditors remuneration of 1.00 lakhs, Director sitting Fees of 1.40 lakhs, ESIC/PF Penalty of 0.29 lakhs, Freight Charges of 27.26 lakhs, CSR expenditure of 3.39 lakhs, Insurance expenses of 1.00 lakhs, Legal and professional fees of 11.83 lakhs, Software Maintenance Expense of 0.35 lakhs, Miscellaneous expenses of 4.73 lakhs, Office Expenses of 4.68 lakhs, Packing & Courier Charges of 0.01 lakhs, Printing & Stationery Expenses of 3.53 lakhs, Power & fuel of 2.12 lakhs, Rent Expense of 22.06 lakhs, Repair and maintenance expenses of 7.44 lakhs, Telephone & Internet Expenses of 1.80 lakhs and Traveling & conveyance of 35.31 lakhs.

The profit/(loss) before tax for the Three months period ended June 30, 2025 was 478.74 lakhs.

Total tax expense for the Three months period ended June 30, 2025 was 120.91 lakhs. Tax expenses of comprised of current tax expense of 122.19 lakhs and deferred tax of 1.27 lakhs.

As a result of the aforesaid, our Company earned a profit for the Three months period ended June 30, 2025 of 357.82 lakhs.

Total income increased by 40.02%% from 9,003.60 lakhs in Fiscal 2024 to 12,614.50 lakhs in Fiscal 2025. This was attributable to increase in revenue from operations from 8,990.74 lakhs in Fiscal 2024 to 12,601.59 lakhs in Fiscal 2025, along with other contributing factors outlined below:

Revenue from operations grew by 40.16%, reaching 12,601.59 lakhs in Fiscal 2025 compared to 8,990.47 lakhs in Fiscal 2024. Our revenue from operations consisted of sales of goods and services as detailed below:

This increase was primarily attributed to Increase in Income from AV Integration services. AV Integration services sales increased from 4,853.03 lakhs in Fiscal 2024 to 7413.16 lakhs in Fiscal 2025. The company also added 505 new customers in Fiscal 2025 and generated revenue of 3,814.11 lakhs from these new customers.

Our other non-operating income was increased by 0.39% from 12.86 lakhs in Fiscal 2024 to 12.91 lakhs in Fiscal 2025, primarily due to increase in Foreign Exchange gain from 0.66 lakhs in Fiscal 2024 to 8.05 lakhs in Fiscal 2025 which was set off against decrease in Balances written off from 8.73 lakhs in Fiscal 2024 to 0.09 lakhs in Fiscal 2025.

Our total expenditure for the Fiscal 2025 was 11,388.24 lakhs as compared to 8,274.24 lakhs for the Fiscal 2024, representing an increase of 37.63%.

Our Cost of Material consumed increased by 35.78%, from 7,330.41 lakhs in Fiscal 2024 to 9,953.43 lakhs in Fiscal 2025. This increase was primarily driven by increase in companys Purchase of Material which increased significantly, rising from 7,646.94 lakhs in Fiscal 2024 to 10,223.90 lakhs.

Employee benefit expenses for Fiscal 2025 amounted to 714.04 lakhs, compared to 497.70 lakhs in Fiscal 2024, reflecting an increase of 43.47%. This rise was attributed to increase in Gratuity Expenses by 20.24 lakhs, Salaries and Wages by 174.93 lakhs and Staff Welfare Expense by 13.66 lakhs.

Finance cost for Fiscal 2025 was reported at 144.82 Lakhs compared to 85.98 Lakhs in Fiscal 2024. It has increased by 58.84 Lakhs and by 68.43% compared to previous year. This increase was primarily due to increase in Interest Paid on borrowings from 74.47 lakhs in Fiscal 2024 to 137.76 lakhs in Fiscal 2025.

Depreciation and amortization expense for Fiscal 2025 was 35.76 lakhs, compared to 28.37 lakhs in Fiscal 2024, representing an increase of 26.05%. This rise was primarily attributed to the Purchase of a Tangible assets of 68.85 lakhs in Fiscal 2025.

Other expenses for Fiscal 2025 amounted to 540.18 lakhs, compared to 331.77 lakhs in Fiscal 2024, marking an increase of 62.37%. This rise was primarily driven by increase in Advertisement expenses by 30.37 lakhs, increase in CSR expenditure by 5.80 lakhs, increase in Freight charges by 34.03 lakhs, increase in Interest on Income Tax by 5.46 lakhs, increase in Insurance expenses by 5.10 lakhs, increase in Miscellaneous expenses by 5.02 lakhs, Travelling & conveyance by 44.91 lakhs, Rent Expense by 33.06 lakhs, Legal and Professional fees by 34.60 lakhs and Repair and Maintenance expense by 6.18 lakhs.

Tax expenses for Fiscal 2025 was reported at 314.75 Lakhs compared to 185.54 Lakhs in previous year. This rise was primarily due to increase in Current Tax from 189.16 lakhs in Fiscal 2024 to 320.63 lakhs in Fiscal 2025.

Profit after Tax for Fiscal 2025 was 911.51 lakhs, compared to 543.83 lakhs in Fiscal 2024, reflecting an increase of 367.68 lakhs or 67.61%. This increase in profit was primarily due to overall increase in Revenue from operations. Profitability of the company increased slightly due to decrease in Cost of Material Consumed expenses to 78.90% of Total income in Fiscal 2025 compared to 81.42% of total income in Fiscal 2024.

(Rs. in Lakhs)

Total income increased by 27.83% from 7043.60 lakhs in Fiscal 2023 to 9,003.60 lakhs in Fiscal 2024. This was attributable to increase in revenue from operations from 7,011.39 lakhs in Fiscal 2023 to 8,990.74 lakhs in Fiscal 2024, outlined below:

Revenue from operations increased by 28.23% from 7,011.39 lakhs in Fiscal 2023 to 8,990.74 lakhs in Fiscal 2024.

Our revenue from operations consisted of sales of goods and services as detailed below:

(Rs. in Lakhs)

This increase was primarily attributed to increase in income from Direct selling and distribution of Pro AV products which increased from 2,282.31 lakhs in Fiscal 2023 to 3,647.65 lakhs in Fiscal 2024. The company also added 260 new customers in Fiscal 2024 and generated revenue of 4,004.23 lakhs from these new customers.

Our other business/ operating income decreased by 60.09% from 32.22 lakhs in Fiscal 2023 to 12.86 lakhs in Fiscal 2024, primarily due to decrease in balances written off from 30.24 lakhs in Fiscal 2023 to 8.73 lakhs in Fiscal 2024.

Our total expenditure for the Fiscal 2024 was 8,274.24 lakhs as compared to 6,952.52 lakhs for the Fiscal 2023, representing a increase of 19.01% in Fiscal 2024.

Our Cost of Material consumed increased by 25.49%, from 5,841.20 lakhs in Fiscal 2023 to 7,330.41 lakhs in Fiscal 2024. This increase was primarily driven by the market demand-supply dynamics and since there was increase in revenue from operations hence same factor has contributed for the increase in the purchase from 5,238.94 lakhs in Fiscal 2023 to 7,646.44 lakhs in Fiscal 2024. On the other hand, Direct expenses of the company has decreased from 567.86 lakhs in Fiscal 2023 to 262.47 lakhs in Fiscal 2024 primarily due to decrease in SITC cost because in Fiscal 2024, the

Company instead of outsourcing SITC work, deployed its own workforce, Hence, SITC Charges reduced to 57.77 lakhs in Fiscal 2024 from 365.13 lakhs in Fiscal 2023. This led to proportional decrease in overall Cost of Material consumed compared to Revenue from Operations in Fiscal 2024.

Employee benefit expenses for Fiscal 2024 amounted to 497.71 lakhs, compared to 658.39 lakhs in Fiscal 2023, reflecting a decrease of 24.41%. This decrease was attributed to decrease in Remuneration to Directors by 200.00 lakhs from 300.00 lakhs in Fiscal 2023 to 100.00 lakhs in Fiscal 2024. On the other hand, Salary and Wages expense have increased from 288.76 lakhs in Fiscal 2023 to 346.92 lakhs in Fiscal 2024 because of in-house execution of SITC work, which was previously outsourced.

Finance cost for Fiscal 2024 was reported at 85.98 Lakhs compared to 111.26 Lakhs in Fiscal 2023. It has decreased by 25.28 Lakhs and by 22.72% compared to previous year. This decrease was primarily due to decrease in Interest Paid on borrowings from 108.89 lakhs in Fiscal 2023 to 74.47 lakhs in Fiscal 2024.

Depreciation and amortization expense for Fiscal 2024 amounted to 28.37 lakhs, compared to 29.64 lakhs in Fiscal 2023. This decrease was primarily due to minimal amount ( 19.40 Lakhs) of purchase of fixed asset by the company.

Other expenses for Fiscal 2024 were 331.77 lakhs, compared to 312.03 lakhs in Fiscal 2023, representing an increase of 6.33%. This increase was mainly due to increase in Software Maintenance Expense by 9.95 lakhs, Miscellaneous expense by 6.30 lakhs, Rent Expense by 13.09 lakhs, Bad Debts W/off by 3.24 lakhs and Travelling & Conveyance by 3.62 lakhs.

Tax expenses for Fiscal 2024 was reported at 185.54 Lakhs compared to 25.18 Lakhs in Fiscal 2023. This increase was mainly due to increase in overall profitability of the company in Fiscal 2024 compared to Fiscal 2023.

Profit after Tax for Fiscal 2024 was reported at 543.83 Lakhs compared to 65.91 Lakhs in Fiscal 2023. Profit have increased by 477.92 lakhs and by 725.15% from Fiscal 2023. This increase in profitability can be majorly attributed to decrease in following expenses:

(Rs. in Lakhs)

The table below summarizes the statement of cash flows, as per our restated consolidated cash flow statements, for the periods indicated:

Our net cash outflow from operating activities during the three months period ended June 30, 2025, was 152.43 lakhs. Our restated profit before tax for the three months ended was 478.43 lakhs, which was primarily adjusted for Interest and Finance Charges paid of 39.36 lakhs, gratuity expenses of 2.91 lakhs, CSR expenses of 3.39 lakhs, depreciation of 8.65 lakhs and interest received of 1.39 lakhs. The cash flows from operating activities before adjusting working capital changes was 531.35 lakhs and was primarily adjusted for increase in trade receivables by 1,422.07 lakhs, increase in inventories by 431.38 lakhs, increase in long term loans and advances by 1.32 lakhs, increase in short term loans and advances by 65.10 lakhs, increase in non-current assets by 16.25 lakhs, increase in trade payables by 1,481.40 lakhs, decrease in other current liabilities by 199.75 lakhs. Cash used in operations in the Three months period ended June 30, 2025, was 123.12 lakhs and income tax paid was 29.31 lakhs.

Our net cash inflow from operating activities during the Fiscal 2025 was 70.87 lakhs. Our restated profit before tax for the Fiscal 2025 was 1,226.26 lakhs, which was primarily adjusted for Interest and Finance Charges paid of 144.82 lakhs, gratuity expenses of 29.37 lakhs, depreciation of 35.76 lakhs and interest received of 4.09 lakhs. The cash flows from operating activities before adjusting working capital changes was 1,433.62 lakhs and was primarily adjusted for increase in trade receivables by 1,368.58 lakhs, increase in inventories by 459.79 lakhs, increase in long term loans and advances by 18.87 lakhs, increase in short term loans and advances by 3.84 lakhs, increase in non-current assets by 81.38 lakhs, increase in trade payables by 692.55 lakhs and increase in other current liabilities by 136.77 lakhs. Cash generated from operations in Fiscal 2025 was 335.48 lakhs and income tax paid was 264.60 lakhs.

Our net cash outflow from operating activities during the Fiscal 2024 was 482.79 lakhs. Our restated profit before tax for the Fiscal 2024 was 729.36 lakhs, which was primarily adjusted for Interest and Finance Charges Paid of 85.98 lakhs, depreciation of 28.37 lakhs, and interest received of 3.47 lakhs. The cash flows from operating activities before adjusting working capital changes was 849.38 lakhs and was primarily adjusted for increase in trade receivables by

965.22 lakhs, increase in inventories by 579.00 lakhs, decrease in short term loans and advances by 882.55 lakhs, increase in trade payables by 309.74 lakhs and decrease in other current liabilities by 786.86 lakhs. Cash used in operations in Fiscal 2024 was 302.57 lakhs and income tax paid was 180.22 lakhs.

Our net cash outflow from operating activities during the Fiscal 2023 was 386.94 lakhs. Our restated profit before tax for the Fiscal 2022 was 91.09 lakhs, which was primarily adjusted for net Interest and Finance Charges Paid of 111.26 lakhs, depreciation of 29.24 lakhs, gratuity expense of 8.26 lakhs and interest received of 1.98 lakhs. The cash flows from operating activities before adjusting working capital changes was 238.27 lakhs and was primarily adjusted for decrease in trade receivables by 1,125.22 lakhs, decrease in inventories by 34.90 lakhs, increase in long term loans and advances by 10.03 lakhs, increase in short term loans and advances by 857.14 lakhs, decrease in trade payables by 748.40 lakhs and increase in other current liabilities by 639.12 lakhs. Cash used in operations in Fiscal 2023 was 419.64 lakhs and income tax paid was 32.70 lakhs.

Net cash inflow from investing activities for the Three months period ended June 30, 2025 was 0.30 lakhs, which primarily included Interest received of 1.39 lakhs and Purchase of Tangible Fixed Assets of 1.09 lakhs.

Net cash outflow from investing activities for Fiscal 2025 was 64.75 lakhs, which primarily included Purchase of Tangible Fixed Assets of 68.85 lakhs.

Net cash outflow from investing activities for Fiscal 2024 was 15.93 lakhs, which primarily included Purchase of Tangible Fixed Assets of 19.40 lakhs.

Net cash outflow from investing activities for Fiscal 2023 was 37.56 lakhs, which primarily included Purchase of Tangible Fixed Assets of 39.54 lakhs.

Net cash outflow from financing activities for the Three months period ended June 30, 2025 was 22.05 lakhs, which primarily comprised of proceeds from Short Term Borrowings of 22.33 lakhs, repayment of Long term Borrowings of 4.19 lakhs and payment of interest of 39.36 lakhs.

Net cash inflow from financing activities for Fiscal 2024 was 225.45 lakhs, which primarily comprised of proceeds from Short Term Borrowings of 547.73 lakhs, proceeds from Long Term Borrowings of 26.05 lakhs, repayment of Long term Borrowings of 203.51 lakhs, and payment of interest of 144.82 lakhs.

Net cash inflow from financing activities for Fiscal 2024 was 327.33 lakhs, which primarily comprised of proceeds from Short Term Borrowings of 856.52 lakhs, repayment of Long term Borrowings of 301.18 lakhs, repayment of Short term Borrowings of 142.02 lakhs and payment of interest of 85.98 lakhs.

Net cash outflow from financing activities for Fiscal 2023 was 222.20 lakhs, which primarily comprised of proceeds from Short Term Borrowings of 126.91 lakhs, repayment of Long term Borrowings of 239.42 lakhs and payment of interest of 111.26 lakhs.

INFORMATION REQUIRED AS PER ITEM 11 (II) (C) (IV) OF PART A OF SCHEDULE VI TO THE SEBI REGULATIONS

1. Unusual or infrequent events or transactions

There has not been any unusual trend on account of our business activity. There are no unusual or infrequent events or transactions in our Company. The transactions are as per usual business operations.

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

Our business has been subject, and we expect it to continue to be subject to significant economic changes arising from the trends identified above in ‘Factors Affecting our Results of Operations and the uncertainties described in the section entitled "Risk Factors" beginning on page 30. To our knowledge, except as we have described in this Red Herring

Prospectus, there are no known factors which we expect to bring about significant economic changes.

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 chapter titled "Risk Factors" beginning on page 30, 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. Extent to which material increases in net sales or revenue are due to increase in services

Changes in revenue in the last three financial years are as explained in the part "Financial Year 2024-25 compared with financial year 2023-24 and Financial Year 2023-24 compared with financial year 2022-23.

5. Significant dependence on a single or few Suppliers or Customers

Significant proportion of our total revenue have historically been derived from a limited number of customers. Our top ten customers for the period ended June 30, 2025 and for the Fiscals 2025, 2024 and 2023 is amounting to 2,913.63lakhs, 8,808.63lakhs, 5,508.49lakhs and 5,190.79lakhs constituting 81.20%, 69.90%, 61.27% and 74.03% respectively of our revenue from top ten clients.

Our business is, therefore, heavily dependent on our relationships with empanelled vendors. Purchases made from our top 10 suppliers for the period ended June 30, 2025 and for the Fiscals 2025, 2024 and 2023, were 2,750.08 lakhs, 8,014.32 lakhs, 6,284.77 lakhs and 4,306.06 lakhs representing 87.53%, 78.38%, 82.19% and 82.20% of our total purchases. We place purchase orders with empanelled vendors from time-to-time basis our requirements and prices for products are normally based on the quotes we receive from these empanelled vendors.

6. Status of any publicly announced new products or business segment.

Please refer to the chapter titled "Our Business" beginning on page 124 for new products or business segments.

7. Seasonality of business

Our business is not seasonal in nature.

8. Competitive conditions.

Competitive conditions are as described under the chapters titled "Industry Overview" and "Our Business" beginning on page 102 and 124 respectively.