Rachit Prints Ltd Management Discussions

You should read the following discussion in conjunction with our restated standalone financial statements ("restated standalone financials statements") attached in the chapter titled "Financial Information" beginning on page 201. You should also read the section titled "Risk Factors" beginning on page 29 and the chapter titled "Forward Looking Statements" beginning on page 18, which discusses a number of factors and contingencies that could affect our financial condition and results of operations. The following discussion relates to us, and, unless otherwise stated or the context requires otherwise, is based on our Restated Standalone Financial Statements.

Our financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditor dated July 26, 2025 which is included in this Red Herring Prospectus under the chapter titled "Restated Standalone Financial Statements" beginning on page 201. The Restated Standalone Financial Information has been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. Our financial year ends on March 31 of each year, and all references to a particular financial year are to the twelve-month period ended March 31 of that year.

Our Company was originally incorporated as "Rachit Prints Private Limited" under the provisions of the Companies Act, 1956 vide Certificate of Incorporation dated March 31, 2003, issued by the Registrar of Companies, Kanpur. Subsequently, our Company was converted into a Public Limited Company pursuant to shareholders resolution passed at Extra-ordinary General Meeting held on May 21, 2024 and the name of our Company was changed to "Rachit Prints Limited". A fresh Certificate of Incorporation consequent upon Conversion from Private Limited Company to Public Limited Company was issued by the Registrar of Companies, Kanpur on July 29, 2024. The Corporate Identification Number of our Company is U22190UP2003PLC027364.

For further details on the change in the name and the registered office of our Company, for further details please refer to the chapter titled "Our History and Certain Other Corporate Matters" beginning on page 172.

Our Company is engaged in the business of manufacturing of good quality Speciality knitted and printed fabric for the mattress industry. We distribute our product by offline model, and have developed a sustainable business model over the period. For more details on business, please refer to the chapter titled "Our Business" beginning on page 141.

Except, as mentioned below there has been no significant developments in the Company in the last Financial Year 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:

• The Company secured a Term loan of Rs. 750.00 lakhs from SIDBI at an interest rate of 8.56% p.a on April 15, 2025, to finance the purchase of machinery

Our business is subjected to various risks and uncertainties, including those discussed in the chapter titled "Risk Factors" beginning on page 29. Our results of operations and financial conditions are affected by numerous factors including the following:

• Ability to attract and retain qualified personnel.
• Technology Upgradation
• Increased competition in our Industry;
• Availability of applicable approvals, licenses, registrations and permits in a timely manner;

• Our ability to successfully implement our growth strategy and expansion plans;
• General economic and business conditions in the markets in which we operate, local and regional.
• Changes in political and social conditions in India, the monetary and interest rate policies of India and other countries.
• The occurrence of natural disaster and calamities;
• Other factors beyond our control.

DISCUSSION ON RESULT OF OPERATION

The following discussion on results of operations should be read in conjunction with the restated standalone financial statements of our Company for the financial year ended on March 31, 2025, March 31, 2024 and March 31, 2023.

Principal Components of Statement of Profit and Loss

Income

Our total income comprises revenue from operations & other income as mentioned below:

Revenue from Operations

Our revenue from operations primarily includes in the manufacturing of Speciality fabric tailored for mattresses such as knitted fabric, printed fabric, warp knit, pillow fabric, Binding Tape and trading of the comforters and bedsheets.

Other Income

Other income includes Interest Income from banks and Miscellaneous Income.

Expenses

Our total expenses include the below mentioned expenses:

Cost of Material Consumed

The Cost of material consumed primarily includes consumption of opening stock of raw material, purchases of raw material during the year and adjustments for the closing stock of raw material.

Purchases of stock in trade

Purchase of stock in trade includes purchase of goods primarily for trading purpose.

Changes in Inventories of finished goods

The changes in inventories of finished goods includes changes in finished goods and work in progress.

Finance Cost

Our finance costs primarily include interest onworking capital facilities and Term Loan.

Employee Benefits Expense

Our employees benefit expense includes Wages & Salaries, Contribution to Provident and Other Funds, Gratuity Expense, and Staff Welfare Expenses.

Depreciation and Amortization Expense

Our depreciation and amortization primarily include depreciation on Factory Building, Plant & Machinery, Furniture & Fixtures, Vehicles, Computers and Office Equipments.

Other Expenses

Our other expenses primarily include expenditure incurred on Packing Expenses, Kundi & Calendering Expenses, Washing Expenses, Power & Fuel Expenses, Finishing & Standing Expenses, Frame, Screen Making Charges, Insurance Charges, Freight Outward, Checking & Finishing Expenses, Legal & Professional Expenses, Rate & Taxes, Repair & Maintenance etc.

Tax Expense

Our tax expenses primarily include current tax and deferred tax.

Results of Operations based on Restated Standalone Financial Statement

The following table sets forth select financial data from our restated statement of profit and loss & the components of which are also expressed as a percentage of total income.

(Rs. in Lakhs)

Particulars	Financial Year Ended March 31, 2025	% of Total Income	Financial Year Ended March 31, 2024	% of Total Income	Financial Year ended March 31, 2023	% of Total Income
I) Incomes
(a) Revenue from Operations	4,170.32	99.81	3,708.26	99.92	3,232.21	99.80
(b) Other Income	8.11	0.19	2.85	0.08	6.54	0.20
II) Total Incomes	4178.43	100.00	3,711.11	100.00	3,238.75	100.00
III) Expenses
(a) Cost of Material Consumed	2,568.79	61.48	2,284.16	61.55	1,952.88	60.30
(b) Purchases of Stock in Trade	3.41	0.08	20.66	0.56	51.57	1.59
(c) Changes in Inventories of Finished Goods	(5.72)	(0.14)	124.11	3.34	80.98	2.50
(d) Employee benefits expense	258.42	6.18	229.69	6.19	239.87	7.41
(e) Finance Cost	37.09	0.89	60.21	1.62	87.53	2.70
(f) Depreciation and Amortization Expense	84.92	2.03	95.64	2.58	84.09	2.60
(g) Other Expenses	622.55	14.90	622.46	16.77	706.07	21.80
IV) Total Expenses	3569.46	85.43	3,436.93	92.61	3,202.98	98.90
V) Profit Before Taxes (II-IV)	608.97	14.57	274.17	7.39	35.77	1.10
VI) Tax Expenses
(a) Current Taxes	144.41	3.46	65.93	1.78	-
(b) Deferred Tax Expense / (Credit)	8.39	0.20	2.91	0.08	3.48	0.11
(c) Tax Adjustment of Earlier Years			2.35	0.06	-	-
VII) Total Taxes	152.79	3.66	71.19	1.92	3.48	0.11
VIII) Profit after Taxes	456.18	10.92	202.99	5.47	32.3	1.00

FISCAL 2025 COMPARED TO FISCAL 2024.

Income

The table below sets forth details in relation to our revenue for Fiscal 2025 and Fiscal 2024:

(Rs. in Lakhs)

Particulars	Fiscal 2025	Fiscal 2024	% Increase/ (Decrease)
Sale of Products
- Finished Goods	4,140.76	3,622.90	14.29
- Traded Goods	4.12	25.94	(84.12)
Other operating revenues
Job Work Income	25.44	59.42	(57.19)
Other Income	8.11	2.85	184.56
Total	4,178.43	3,711.11	12.59

The Company primarily earns its revenue from sale of speciality fabric for mattress industry. The other operating revenues includes job work income. Other income includes interest income from deposits with banks and miscellaneous income.

The revenue from sale of finished goods increased by Rs. 517.86 Lakhs or 14.29% to Rs. 4140.76 Lakhs for the fiscal year 2025 as compared to Rs. 3,622.90 Lakhs in fiscal 2024. This is primarily due to increase in demand in domestic market.

Revenue from traded goods includes trading of comforters and bedsheets, which has reduced by Rs. 21.82 Lakhs or by 84.12% to Rs. 4.12 Lakhs for the fiscal 2025 as compared to Rs. 25.94 Lakhs in fiscal 2024 that is mainly due to the company is focusing on primary business of manufacturing of knitted and printed fabric, trading of the comforters and bedsheets is an ancillary business based on the demand of the product.

The other operating revenue includes Job Work Income, the decrease in other operating revenue is by Rs. 33.98 Lakhs or 57.19% that is primarily attributable to decrease in Job work income. Other income increased Rs. 5.26 lakhs or 184.56%, to Rs. 8.11 lakhs in Fiscal 2025 from Rs. 2.85 lakhs in Fiscal 2024 primarily due to increase in the Interest Income and income from Rebate & Discount.

Expenses:

The table below sets forth details in relation to our total expenses for Fiscal 2025 compared to our total expenses for Fiscal 2024:

(Rs. in Lakhs)

Particulars	Fiscal 2025	Fiscal 2024	% Increase/ (Decrease)
Cost of Material consumed	2568.79	2,284.16	12.46
Purchases of stock in trade	3.41	20.66	(83.49)
Changes in inventories of finished goods and work in progress	(5.72)	124.11	(104.61)
Employee benefits expense	258.42	229.69	12.51
Finance Cost	37.09	60.21	(38.40)
Depreciation and amortization expense	84.92	95.64	(11.21)
Other expenses	622.55	622.46	0.01
Total Expenses	3,569.46	3,436.93	3.86

Our total expenses increased by Rs. 132.53 Lakhs or 3.86% to Rs. 3,569.46 Lakhs for Fiscal 2025 compared to Rs. 3,436.93 Lakhs for Fiscal 2024. This was primarily attributable to following:

Cost of Material Consumed

The table below sets forth details in relation to our cost material consumed:

(Rs. in Lakhs)

Particulars	Fiscal 2025	Fiscal 2024	% Increase and Decrease
Balance at the beginning of the year	295.51	456.84	(35.31)
Add: Purchases	2602.10	2,122.83	22.58
Less: Balance at the end of the year	(328.82)	(295.51)	(11.27)
Cost of Material Consumed	2568.79	2284.16	12.46

Our cost of materials consumed increased Rs. 284.63 Lakhs or 12.46% to Rs. 2,568.79 lakhs for Fiscal 2025 compared to Rs. 2,284.16 lakhs for Fiscal 2024. The Cost of Material Consumed is mainly attributable to the cost of raw material that the company requires to manufacture the finished goods, this increase in cost of material consumed is only due to volume growth of the company in terms of production quantity.

Purchase of stock in trade

The Purchase of Stock in Trade primarily includes expenses related to purchases of material exclusively for trading purpose. The Purchase Stock in Trade decreased by Rs. 17.25 lakhs or 83.49% to Rs. 3.41 lakhs for Fiscal 2025 compared to Rs. 20.66 lakhs for Fiscal 2024. Hence this signifies that trading of the stock in trade is not the primary activity of the company. Which is in line with the trading revenue.

Changes in the inventories of finished goods

The table below sets forth details in relation to changes in inventories for the periods indicated below:

(Rs. in lakhs)

Particulars	Fiscal 2025	Fiscal 2024	Increase/(decrease) in the amount	% increase and decrease
Opening Stock
Finished Goods	11.69	92.06	(80.37)	(87.30)
Work in Progress	49.80	93.55	(43.75)	(46.77)
(A)	61.50	185.61	(124.11)	(66.87)
Closing Stock
Finished Goods	36.02	11.69	24.33	208.13
Work in Progress	31.20	49.80	(18.60)	(37.35)
(B)	67.22	61.50	5.72	9.30
Total (A-B)	(5.72)	124.11	(129.83)	(104.61)

Our closing inventory level for finished goods in Fiscal 2025 had increased by Rs. 24.33 lakhs i.e. from Rs. 11.69 lakhs in Fiscal 2024 to Rs. 36.02 lakhs in Fiscal 2025. The level of work in progress had decreased by Rs. 18.60 lakhs i.e. from Rs. 49.80 lakhs in Fiscal 2024 to Rs. 31.20 lakhs in Fiscal 2025.

Employee Benefit Expense

(Rs. in lakhs)

Particulars	Fiscal 2025	Fiscal 2024	%Increase/ (decrease)
Wages and salaries	251.37	224.18	12.13
Contribution to provident and other funds	2.81	2.62	7.25

Gratuity Expense	0.92	1.35	(31.85)
Staff Welfare Expenses	3.32	1.53	116.99
Total	258.42	229.69	12.51

Our employee benefit expense increased by Rs. 28.73 Lakhs or 12.51% to Rs. 258.42 Lakhs for Fiscal 2025 as compared to Rs. 229.69 Lakhs for Fiscal 2024. The above increase in cost is due to regular increment in staff and labour cost, which is in line with the business of the Company as they have added 6 Machineries in the Fiscal 2025.

Finance costs

The table below sets forth details in relation our finance cost for the financial year indicated below:

(Rs. in lakhs)

Particulars	Fiscal 2025	Fiscal 2024	% Increase/(decrease)
Interest expense on
(i) Working capital facilities	27.18	35.46	(23.35)
(ii) Term Loan	9.86	23.83	(58.62)
Other Borrowing Costs	0.04	0.92	(95.65)
Total	37.09	60.21	(38.40)

Our finance costs decreased by Rs. 23.12 lakhs or 38.40% to Rs. 37.09 lakhs for Fiscal 2025 compared to Rs.

60.21 lakhs for Fiscal 2024. This decrease was primarily due to Company has received interest on subsidy in FY 2024 -2025 of Rs. 6.56 Lakhs, Company has received Share capital receipts of Rs. 228.48 lakhs in September 2024, which helped it to reduce its reliance on the working capital limit and reduced the finance costs.

Depreciation and Amortisation Expense

Our depreciation and amortisation expense decreased by Rs. 10.72 lakhs or 11.21% to Rs. 84.92 lakhs for Fiscal 2025 compared to Rs. 95.64 lakhs for Fiscal 2024.

Other Expenses

Our other expenses nominally increased by only Rs. 0.09 lakhs or 0.01% to Rs. 622.55 lakhs for Fiscal 2025 as compared to Rs. 622.46 lakhs for Fiscal 2024. As compared to the revenue growth of 12.46%, our other expenses have not increased highly, which helped the company to increase its margins.

EBITDA

For the reasons described below, our EBITDA increased by Rs. 295.70 lakhs, or 69.22% to Rs. 722.87 lakhs for Fiscal 2025 from Rs. 427.17 lakhs for Fiscal 2024.

Profit Before Tax

Our Profit before tax has increased by Rs. 334.80 Lakhs or 122.11% to Rs. 608.97 Lakhs for Fiscal 2025 from Rs. 274.17 Lakhs for Fiscal 2024.

Tax Expenses

Our total tax expenses increased by Rs. 81.61 lakhs that is Rs. 152.79 lakhs for Fiscal 2025 compared to Rs. 71.19 lakhs for Fiscal 2024 mainly because of increase in profits.

Profit for the Year

As a result of foregoing factors, our profits for the year increased by Rs. 253.19 Lakhs or 124.73% for the fiscal year 2025.

• The company is primarily engaged in the printing and knitting of cloth. While printing is a power-intensive process that relies on fossil fuels, knitting is more profitable, in higher demand, and less power-intensive, requiring only electricity, which is more cost-effective. As a result, the company has been shifting its focus from printing to knitting. This strategic shift contributed to an increase in profit margins, rising from 1.00% in Fiscal 2023 to 5.47% in Fiscal 2024 and 10.94% in Fiscal 2025. This shift is further evident by a reduction in Power & Fuel Expenses, which decreased by Rs. 41.78 lakhs, or 15.14%, from Rs. 276.00 lakhs in Fiscal 2024 to Rs. 234.22 lakhs in Fiscal 2025.

• The company added plant and machinery worth Rs. 115.16 lakhs in Fiscal 2024, leading to increased production and higher revenue from operations. Revenue from operations grew by Rs. 462.06 lakhs, or 12.46%, rising from Rs. 3,708.26 lakhs in Fiscal 2024 to Rs. 4,170.32 lakhs in Fiscal 2025. This increase in revenue contributed to a corresponding rise in profit after tax.

FISCAL 2024 COMPARED TO FISCAL 2023.

Income

The table below sets forth details in relation to our revenue for Fiscal 2024 and Fiscal 2023:

(Rs. in Lakhs)

Particulars	Fiscal 2024	Fiscal 2023	% Increase/ (Decrease)
Sale of Products
- Finished Goods	3,622.90	3,115.93	16.27
- Traded Goods	25.94	66.17	(60.80)
Other operating revenues
Job Work Income	59.42	50.11	18.58
Other Income	2.85	6.54	(56.42)
Total	3,711.11	3,238.75	14.58

The Company primarily earns its revenue from sale of speciality fabric for mattress industry. The operating revenues includes job work income. Other income includes interest income from deposits with banks and miscellaneous income.

The revenue from finished goods increased by Rs. 506.97 Lakhs or 16.27%, to 3,622.90 Lakhs for the fiscal 2024 as compared to fiscal 2023 i. e. Rs. 3,115.93 Lakhs. This is primarily due to increase in sale of Mattress Fabric since the sale of our mattress fabric.

The trading in goods includes trading of comforters and bedsheets, which has reduced by Rs. 40.23 Lakhs or by 60.80% between the fiscal 2023 and fiscal is mainly due to the company is focusing on primary business of manufacturing of knitted and printed fabric, trading of the fabric is an ancillary business based on the demand of the product.

The other operating revenue includes Job Work Income, the increase in other operating revenue is by Rs. 9.31 Lakhs or 18.58% that is primarily attributable to Job work income.

There has been reduction in other income because of the reduction in the interest income from bank on deposits and miscellaneous income.

Expenses:

The table below sets forth details in relation to our total expenses for Fiscal 2024 compared to our total expenses for Fiscal 2023:

(Rs. in Lakhs)

Particulars	Fiscal 2024	Fiscal 2023	% Increase/ (Decrease)
Cost of Revenue Operations	2,284.16	1,952.88	16.96
Purchases of stock in trade	20.66	51.57	(59.94)
Changes in inventories of finished goods	124.11	80.98	53.26
Employee benefits expense	229.69	239.87	(4.24)
Finance Cost	60.21	87.53	(31.21)
Depreciation and amortization expense	95.64	84.09	13.74
Other expenses	622.46	706.07	(11.84)
Total Expenses	3,436.93	3,202.98	7.30

Our total expenses increased by Rs. 233.95 lakhs or 7.30% to Rs. 3,436.93 lakhs for Fiscal 2024 compared to Rs. 3202.98 lakhs for Fiscal 2023. This was primarily attributable to following:

Cost of Material Consumed

The table below sets forth details in relation to our cost material consumed:

(Rs. in Lakhs)

Particulars	Fiscal 2024	Fiscal 2023	% Increase and Decrease
Balance at the beginning of the year	456.84	241.11	89.47
Add: Purchases	2,122.83	2,168.61	(2.11)
Less: Balance at the end of the year	(295.51)	(456.84)	(35.31)
Cost of Material Consumed	2,284.16	1,952.88	16.96

Our cost of materials consumed increased Rs. 331.28 Lakhs or 16.96% to Rs. 2,284.16 Lakhs for Fiscal 2024 compared to Rs. 1,952.88 Lakhs for Fiscal 2023. The Cost of Material Consumed is mainly attributable to the cost of raw material that the company requires to manufacture the finished goods, this increase in cost of material consumed is mainly due to increase in the prices of raw material and increase in production.

Purchase of stock in trade

The Purchase of Stock in Trade primarily includes expenses related to purchases of material exclusively for trading purpose. The Purchase Stock in Trade decreased by Rs. 30.91 Lakhs or 59.94% to Rs. 20.66 Lakhs for Fiscal 2024 compared to Rs. 51.57 Lakhs for Fiscal 2023. Hence this signifies that trading of the stock in trade is not the primary activity of the company. Which is in line with the trading revenue.

Changes in the inventories of finished goods

The table below sets forth details in relation to changes in inventories for the periods indicated below:

(Rs. in lakhs)

Particulars	Fiscal 2024	Fiscal 2023	% increase and decrease	increase in the amount
Opening Stock

Finished Goods	92.06	175.39	(47.51)	(83.33)
Work in Progress	93.55	91.20	2.58	2.35
(A)	185.61	266.59	(30.38)	(80.98)
Closing Stock
Finished Goods	11.69	92.06	(87.30)	(80.37)
Work in Progress	49.80	93.55	(46.77)	(43.75)
(B)	61.50	185.61	(66.87)	(124.11)
Total (A-B)	124.11	80.98	53.26	43.13

Our closing inventory level for finished goods in Fiscal 2024 had decreased by Rs. 83.37 Lakhs i.e. from Rs.

92.06 Lakhs in Fiscal 2023 to Rs. 11.69 Lakhs in Fiscal 2024. The level of work in progress had decreased by Rs.

43.75 Lakhs i.e. from Rs. 93.55 Lakhs in Fiscal 2023 to Rs. 49.80 Lakhs in Fiscal 2024. Together inventory of Finished Goods and Work-in-progress decreased 66.87% between F.Y. 2024 and F.Y. 2023 in order to do effective working capital management the old stock has been consumed and reduced which is in line with the increase in revenue from operation in the same period.

Employee Benefit Expense

(Rs. in lakhs)

Particulars	Fiscal 2024	Fiscal 2023	%Increase/ (decrease)
Wages and salaries	224.18	236.28	(5.12)
Contribution to provident and other funds	2.62	2.56	2.34
Bonus
Gratuity Expense	1.35	-	100.00
Staff Welfare Expenses	1.53	1.03	48.54
Total	229.69	239.87	(4.24)

Our employee benefit expense decreased by Rs. 10.18 Lakhs or 4.24% to Rs. 229.69 Lakhs for Fiscal 2024 as compared to Rs. 239.87 Lakhs for Fiscal 2023. This increase is primarily due to purchase of machinery; hence requirement of workforce has reduced, therefore employee benefit expense had reduced.

EBITDA

For the reasons described below, our EBITDA increased by Rs. 222.63 Lakhs, or 112.69% to Rs. 427.17 Lakhs for Fiscal 2024 from Rs. 200.84 Lakhs for Fiscal 2023.

Finance Costs

The table below sets forth details in relation our finance cost for the periods indicated below:

(Rs. in lakhs)

Particulars	Fiscal 2023	Fiscal 2024	% Increase/(decrease)
Interest expense on
(i) Working capital facilities	35.46	45.21	(21.57)
(ii) Term Loan	23.83	34.30	(30.52)
Other Borrowing Costs	0.92	8.02	(88.53)
Total	60.21	87.53	(31.21)

Our finance costs decreased by Rs. 27.31 Lakhs or 31.21% to Rs. 60.21 Lakhs for Fiscal 2024 compared to Rs.

87.53 Lakhs for Fiscal 2023. This decrease was primarily due to Company has received interest on subsidy in FY 2023 -2024 of Rs. 10.01 Lakhs and also received the subsidy on Machine amounting to Rs. 80.23 Lakhs also due to less utilisation of the working capital limits that resulted in decrease in finance cost.

Depreciation and Amortisation Expense

Our depreciation and amortisation expense increased by Rs. 11.55 Lakhs or 13.74% to Rs. 84.09 Lakhs for Fiscal 2024 compared to Rs. 95.64 Lakhs for Fiscal 2023, mainly attributable to purchase of new machinery amounting to Rs. 190.12 Lakhs in Fiscal 2023.

Other Expenses

Our other expenses decreased by Rs. 83.61 Lakhs or 11.84% to Rs. 622.46 Lakhs for Fiscal 2024 as compared to Rs. 706.07 Lakhs for Fiscal 2023. This decrease is mainly due to decrease in the cost of power & fuel in FY 2023- 24 by Rs. 74.30 Lakhs or 21.21% as compared to Fiscal 2023.

Profit Before Tax

Our Profit before tax increased by Rs. 238.40 Lakhs or 666.48% to Rs. 274.17 Lakhs for Fiscal 2024 from Rs.

35.77 Lakhs for Fiscal 2023.

Tax Expenses

Our total tax expenses increased by Rs. 67.71 Lakhs that is Rs. 71.19 Lakhs for Fiscal 2024 compared to Rs. 3.48 Lakhs for Fiscal 2023 mainly because of increase in profits.

Profit for the Year

As a result of foregoing factors, our profits for the year increased by Rs. 170.69 Lakhs or 528.45% for the fiscal year 2024 compared to Rs. 32.3 Lakhs in fiscal year 2023.

The company is primarily engaged in the printing and knitting of cloth. While printing is a power-intensive process that relies on fossil fuels, knitting is more profitable, in higher demand, and less power-intensive, requiring only electricity, which is more cost-effective. As a result, the company has been shifting its focus from printing to knitting. This strategic shift contributed to an increase in profit margins, rising from 1.00% in Fiscal 2023 to 5.47% in Fiscal 2024. This shift is further evidenced by a reduction in Power & Fuel Expenses, which decreased by Rs. 74.30 Lakhs, or 21.21%, from Rs.350.30 Lakhs in Fiscal 2023 to Rs. 276.00 Lakhs in Fiscal 2024.

The company added plant and machinery worth Rs. 190.12 Lakhs in Fiscal 2023, leading to increased production and higher revenue from operations. Revenue from operations grew by Rs. 476.05 Lakhs, or 14.73%, rising from Rs. 3,232.21 Lakhs in Fiscal 2023 to Rs. 3,708.26 Lakhs in Fiscal 2024. This increase in revenue contributed to a corresponding rise in profit after tax.

CASH FLOW BASED ON RESTATED STANDALONE FINANCIAL STATEMENTS

(Rs.in Lakhs)

Particulars	Fiscal
	2025	2024	2023
Net cash generated from operating activities	46.03	918.71	(136.97)
Net cash (used in)/generated from investing activities	(484.60)	(34.14)	(209.59)
Net cash (used in)/generated from financing activities	476.40	(900.75)	227.23

Net change in Cash and cash equivalents at the end of the year

37.83

(16.18)

(119.33)

For further details, kindly refer to the chapter titled "Restated Standalone Financial Statements" beginning on page 201.

Other Key Ratios

Ratios	March 31, 2025	March 31, 2024	March 31, 2023
Current Ratio	1.69	1.31	1.23
Debt-equity ratio	0.75	1.17	4.31
Debt service coverage ratio	19.49	7.10	2.29
Return on Equity (%)	51.00	46.00	9.41
Working capital turnover ratio	6.29	11.86	10.15
Net profit margin (%)	10.94	5.47	1.00
Return on capital employed	29.61	27.98	6.41

Methodology:

• Current Ratio = Current Asset / Current Liability
• Debt-Equity Ratio = Total Debt / Total Equity
• Debt Service Coverage Ratio = EBITDA / Debt Service
• Return on Equity Ratio = Profit After Tax / Total Equity
• Working Capital Turnover Ratio = Revenue from Operations / (Current Asset - Current Liability)
• Net Profit Ratio = Profit After Tax / Revenue
• Return on Capital Employed= EBIT/ (Net Worth + Total Debt)

OTHER MATTERS

• 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.

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

Other than as described in the chapter titled "Risk Factors" beginning on page 29, to our knowledge there are no known significant economic changes that materially affected or are likely to affect income from continuing operations.

• Known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations

Other than as described in the chapter titled "Risk Factors" beginning on page 29, to our knowledge there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.

• Future relationship between Costs and Income

Our Companys future costs and revenues will be determined by multiple factors such as industry preferences, economic activity, government policies and demand of our products.

• The extent to which material increase/decrease in net revenue are due to increase/decrease in sale of our products.

Increase/Decrease in revenues are by and large linked to increase/decrease in volume of business activities carried out by the Company.

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

The Company is operating in Home Textile Industry and relevant industry data, as available, has been included in the chapter titled "Our Industry" beginning on page 115.

• Status of any publicly announced new products or business segments

Our Company has not announced any new products or segment, other than through this Red Herring Prospectus.

• The extent to which the business is seasonal

Our Company business is not seasonal in nature.

• Any significant dependence on a single or few clients.

Our business is dependent on few clients. Our top 10 customers contributed 88.97%, 78.24% and 74.20% of revenue from operations for Fiscal 2024-25, Fiscal 2023-24 and Fiscal 2022-23 respectively.

• 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 chapter titled "Our Business" beginning on page 141.