Refractory Shapes Ltd Management Discussions

OPERATIONS

The following discussion and analysis of our financial condition and results of operations for the period ended September 30, 2023 and financial years ended on 2023, 2022 and 2021 is based on, and should be read in conjunction with, our Restated Financial Statements, including the schedules, notes and significant accounting policies thereto, included in the chapter titled "Restated Financial Statements" beginning on page 212 of this Draft Prospectus. Our Restated Financial Statements have been derived from our audited financial statements and restated in accordance with the SEBI ICDR Regulations and the ICAI Guidance Note.

You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in this Draft Prospectus. You should also read the section titled "Risk Factors" beginning on page 28 of this Draft Prospectus, which discusses a number of factors, risks and contingencies that could affect our financial condition and results of operations. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year are to the twelve-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 Refractory

Shapes Limited (formerly known as Refractory Shapes Private Limited), our Company. Unless otherwise indicated, financial information included herein are based on our "Restated Financial Statements" for the period ended

September 30, 2023 and financial years ended on 2023, 2022 and 2021 included in this Draft Prospectus beginning on page 212 of this Draft Prospectus.

Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "Forward Looking Statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to our operations include, among others, economic conditions affecting demand/supply and price conditions in domestic and overseas market in which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental factors.

Overview

Refractory Shapes Limited ("Company" or "Refractory Shapes") is primarily engaged in the manufacturing of different types of Bricks, Castables, High Alumina Catalyst and Ceramic Balls which includes Pre Cast & Pre Fired Blocks ("PCPF"), Burner Blocks, Special shaped Refractory bricks, Dense & Insulating Castables & Mortars. Our Company was established in the year 1973 as a Proprietary Firm named as M/s. Refractory Shapes which was then converted into a Private Limited Company vide Certificate of Incorporation dated January 08, 1996, whose main object was to take over the running Business of M/s. Refractory Shapes, Further the Business was then taken over by Mr. Dayashankar Krishna Shetty and Ms. Pratibha Dayashankar Shetty vide a Deed of Assignment dated June 19, 1996.

On conversion of a Proprietary Firm into the Company, Mr. Dayashankar Krishna Shetty, one of the Promoters and Executive Director of our Company, introduced various new products which included Special Shaped and Custom-made Refractory shapes. Our Company is currently promoted by Mr. Dayashankar Krishna Shetty, Ms. Pratibha Dayashankar Shetty and Ms. Prajna Shravan Shetty. Our Promoters manage and control the major affairs of our Business Operations with their considerable experience in our Industry. For more details, please see the chapter titled,

" Our Management" and "Our Promoter and Promoter Group" on page 182 and 203 of this Draft Prospectus.

Our Company started developing and supplying products to Refineries and Steel Industries since its inception in 1973. In the year 2007 and 2011, Our Company had for the first time become an approved vendor with Engineer India

Limited ("The EIL") and also got enlisted with EIL for "High Alumina Refractory Bricks", Our Company is the Original Equipment Manufacturer in many projects executed by EIL, which increased the opportunities of our Company in many green field projects, these EIL enlistment is re-validated every 3 years.

The tailored made products shaped by the Company finds its application in a diverse range of Industries, including Steel, Refineries, Fertilizers, Petrochemicals, Glass, Cement etc. The companys refractories are engineered to endure the harsh conditions of these industries, contributing to enhanced operational efficiency and extended equipment life.

The tailored made finished goods provide diversity in the products being manufactured by our Company wherein modern manufacturing equipment are installed for scaling the manufacturing.

In addition to the manufacturing activity being carried out by the Company, Refractory Shapes is often involved in receiving orders for those items from clients which are not a part of Companys operations in manufacturing activities.

These items include Metallic Anchors which are used as support for installing refractory castables for which Raw Materials such as tabular alumina, low alumina bricks and insulation bricks, etc are required, For such orders, our company procures these items from their approved vendors and sells to the clients, hence, our Company is also involved in trading of the aforesaid products.

For the period ended September 30, 2023, our Companys Total Income and Restated Profit after tax were Rs.1957.38 Lakhs and Rs. 232.21 Lakhs. For the year ended March 31, 2023, our Companys Total Income and Restated Profit after tax were Rs.3872.23 Lakhs and Rs.191.74 Lakhs, compared to our Companys Total Income and Restated Profit after tax were Rs.2621.67 Lakhs and Rs.287.04 Lakhs respectively, over previous year ended i.e. March 31, 2022. For the year ended March 31, 2021, our Companys Total Income and Restated Profit after tax were Rs. 2179.67 Lakhs and Rs. 156.39 Lakhs respectively.

Key Performance Indicators of our Company.

( in lakhs)

Key Financial Performance	September 30, 2023	March 31, 2023	March 31, 2022	March 31, 2021
Revenue from Operations (1)	1,917.91	3,796.92	2,550.32	2,088.90
EBITDA (2)	532.59	387.72	361.37	234.49
EBITDA Margin (3)	27.77%	10.21%	14.17%	11.23%
PAT	232.21	191.74	287.04	156.39
PAT Margin (4)	12.11%	5.05%	11.26%	7.49%

(1) Revenue from operation means revenue from sales.

(2) EBITDA is calculated as Profit before tax + Depreciation + Interest Expenses Other Income - Profit from Associate (3) EBITDA Margin is calculated as EBITDA divided by Revenue from Operations (4) PAT Margin is calculated as PAT for the period/year divided by revenue from operations

Explanation for KPI metrics

Key Financial Explanations Performance

Revenue from Revenue from Operations is used by our management to track the revenue profile of the Operations business and in turn helps to assess the overall financial performance of our Company and volume of our business EBITDA EBITDA provides information regarding the operational efficiency of the business EBITDA Margin EBITDA Margin (%) is an indicator of the operational profitability and financial performance of our Business PAT Profit after tax provides information regarding the overall profitability of the business PAT Margin PAT Margin (%) is an indicator of the overall profitability and financial performance of our business.

Operational KPIs of the Company:

( in lakhs)

Key Financial Performance	September 30, 2023	March 31, 2023	March 31, 2022	March 31, 2021
Revenue split between domestic and exports
Domestic Market (in Lakhs)	1917.91	3796.92	2550.32	2088.90
Export Market (in Lakhs)	-	-	-	-
Domestic Market (%)	100%	100%	100%	100%
Export Market (%)	-	-	-	-

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of Statement of Significant Accounting Policies, please refer to the chapter titled "Restated Financial Statements" beginning on page 212 of this Draft Prospectus.

Factors Affecting our Results of Operations

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factors" beginning on page 28 of this Draft Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

1. Disruption in our manufacturing process.

2. Our ability to successfully implement our strategy, our growth and expansion, technological changes.

3. Fail to attract, retain and manage the transition of our management team and other skilled & unskilled employees;

4. Our ability to protect our intellectual property rights and not infringing intellectual property rights of other parties;

5. Ability to respond to technological changes;

6. Failure to comply with regulations prescribed by authorities of the jurisdictions in which we operate;

7. General economic and business conditions in the markets in which we operate and in the local, regional and national economies;

8. Our ability to effectively manage a variety of business, legal, regulatory, economic, social and political risks associated with our operations;

9. Recession in the market;

10. Changes in laws and regulations relating to the industries in which we operate; 11. Effect of lack of infrastructure facilities on our business;

12. Our ability to meet our capital expenditure requirements;

13. Failure to adapt to the changing technology in our industry of operation may adversely affect our business and financial condition; 14. Failure to obtain any approvals, licenses, registrations and permits in a timely manner;

15. Changes in political and social conditions in India or in countries that we may enter, the monetary and interest rate policies of India and other countries, inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices; 16. Occurrence of natural disasters or calamities affecting the areas in which we have operations;

17. Conflicts of interest with affiliated companies, the promoter group and other related parties; 18. The performance of the financial markets in India and globally;

19. Any adverse outcome in the legal proceedings in which we are involved; 20. Our ability to expand our geographical area of operation;

21. Concentration of ownership among our Promoters.

RESULTS OF OUR OPERATION

( in lakhs)

Particulars			For The Year Ended 31st March
	For the Period ended Septe mber 30, 2023	% of Total Reve nue	2023	% of Total Reve nue	2022	% of Total Reve nue	2021	% of Total Reve nue
Revenue:
Revenue from Operations	1917.9 1	97.98 %	3796. 92	98.06 %	2550 .32	97.28 %	2088 .9	95.84 %
Other income	39.47	2.02 %	75.31	1.94 %	71.3 5	2.72 %	90.7 7	4.16 %
Total revenue	1957.3 8	100.0 0%	3872. 23	100.0 0%	2621 .67	100.0 0%	2179 .67	100.0 0%
Expenses:
Cost of Material Consumed	1640.0 5	83.79 %	2214. 36	57.19 %	1028 .92	39.25 %	925. 36	42.45 %
Purchase of Stock in Trade	104.88	5.36 %	580.9 3	15.00 %	471. 39	17.98 %	272. 34	12.49 %
Change in inventory of Stock in Trade	(670.27 )	(34.2 4%)	(174. 02)	(4.49 %)	(38.5 3)	(1.47 %)	141. 29	6.48 %
Employee Benefits Expenses	146.33	7.48 %	360.7 7	9.32 %	302. 09	11.52 %	295. 97	13.58 %
Finance costs	71.24	3.64 %	108.3 5	2.80 %	59.7	2.28 %	74.7 9	3.43 %
Depreciation and Amortization	187.67	9.59 %	105.9 3	2.74 %	34.9 9	1.33 %	38.6 8	1.77 %
Other expenses	164.33	8.40 %	427.1 7	11.03 %	425. 07	16.21 %	219. 46	10.07 %
Total Expenses	1644.2 3	84.00 %	3623. 49	93.58 %	2283 .63	87.11 %	1967 .89	90.28 %
Profit/ (Loss) before Share of Profit/ (Loss) from Associate	313.15	16.00 %	248.7 5	6.42 %	338. 03	12.89 %	211. 79	9.72 %
Share of Profit/ (Loss) of Associate	-	-	10.43	0.27 %	31.9 1	1.22 %	-	-
Profit before exceptional and extraordinary items and tax	313.15	16.00 %	259.1 8	6.69 %	369. 94	14.11 %	211. 79	9.72 %
Exceptional Items	-	-	-	-	-	-	-	-
Profit before extraordinary items and tax	313.15	16.00 %	259.1 8	6.69 %	369. 94	14.11 %	211. 79	9.72 %
Extraordinary items	-	-	-	-	-	-	-	-
Profit before tax	313.15	16.00 %	259.1 8	6.69 %	369. 94	14.11 %	211. 79	9.72 %
Tax expense:
Current tax	84.32	4.31 %	43.76	1.13 %	83.4 8	3.18 %	52.2 2	2.40 %
Earlier year Tax	-	-	7.57	0.20 %	-	-	3.97	0.18 %
Deferred Tax	(3.38)	(0.17 %)	16.11	0.42 %	(0.58 )	(0.02 %)	(0.79 )	(0.04 %)
Net Total Tax Expenses	80.94	4.14 %	67.44	1.74 %	82.9	3.16 %	55.4	2.54 %
Profit /(Loss) for the period from continuing operations	232.21	11.86 %	191.7 4	4.95 %	287. 04	10.95 %	156. 39	7.17 %

Review of Restated Financials,

Key Components of Companys Profit and Loss Statement

Revenue from operations: Revenue from operations mainly consists from Sales of products.

Other Income: Other Income Consist of Interest Income, Discount Received & Other Misc. Incomes etc.

Expenses: Companys expenses consist of, Cost of Material Consumed, Changes in Inventories of Finished Goods

WIP & Stock in Trade, Depreciation Expenses, Employee Benefit Expenses, Finance Cost & Other Expenses.

Cost of Material Consumed: Cost of Material Consumed consist of Opening Stock, Purchase of Raw Material, Direct Expenses & Closing Stock.

Purchase of Stock in Trade: Purchase of Stock in Trade consist of purchase of trading goods.

Change in inventory of Stock in Trade: Change in inventory of Stock in Trade consist of difference between opening & closing Value of Stock.

Employee Benefits Expense: Employee benefit expenses includes Salaries and Wages, Directors Remuneration & Contribution to Statutory Funds, Gratuity Expenses etc.

Finance Cost: Finance Cost includes Interest paid on borrowings & Bank Charges.

Depreciation and Amortization Expense: We recognize Depreciation and Amortization expense on a SLM Basis as per the rates set forth in the Companies Act, 2013/ Companies Act, 1956, as applicable.

Other Expenses: Other expenses include Rent, Repair & Maintenance. Commission Expenses, Travelling & Conveyance etc.

Review of Operations for the period ended on September 30, 2023:

Revenue from Operation

Revenue from operations for the period ended on September 30, 2023 amounting to 1917.91 lakhs represents 97.98% of Total Revenue.

Other Income

Other Income consisting of Interest Income, Rent Income & Misc. Income amounting to 39.47 Lakhs represents

2.02% of Total Revenue.

Cost of Material Consumed

Cost of Material Consumed for the period ended on September 30, 2023 amounting to 1640.05 lakhs represents 83.79% of Total Revenue.

Purchase of Stock in Trade

Purchase of Stock in Trade for the period ended on September 30, 2023 amounting to 104.88 lakhs represents 5.36% of Total Revenue.

Change in inventory of Stock in Trade

Change in inventory of Stock in Trade amounting to (670.27) Lakhs represents (34.24) % of Total Revenue.

Employee Benefit Cost

Employee benefit expenses includes Salaries and Wages, Managerial Remuneration, Contribution to provident and other funds & Staff welfare expenses amounting to 146.33 Lakhs represents 7.48% of Total Revenue.

Finance Cost

Finance Cost includes Bank Charges, Interest on Borrowings & Delayed Payment of Statutory Dues amounting to 71.24 Lakhs represents 3.64% of Total Revenue.

Depreciation and Amortization

Depreciation is charged on WDV method amounting to 187.67 Lakhs represents 9.59% of Total Revenue

Other Expenses

Other expenses include Power and Fuel expenses, Carriage Outward, Travelling and conveyance, Legal and professional fees, vehicle expenses and hire charges etc. amounting to 164.33 Lakhs represents 8.40% of Total

Revenue.

Share of Profit/(Loss) from the Associate

The Share of Profit/(Loss) from the Associate for the period ended on September 30, 2023 is not included as the Financial Statements of the Associate are not audited for the period ended September 30, 2023.

Profit Before Tax

The Profit before tax for the period ended on September 30, 2023 was 313.15 Lakhs representing 16.00% of Total Revenue.

Tax Expenses

Tax Expenses consisting of Current Tax & Deferred Tax for the period ended on September 30, 2023 was 84.32 Lakhs and (3.38) Lakhs respectively, representing 4.31% and (0.17) % respectively of Total Revenue.

Profit After Tax

The Profit after tax for the period ended on September 30, 2023 was 232.21 Lakhs representing 11.86% of Total Revenue.

Fiscal 2023 compared with Fiscal 2022

Revenue from Operation

Revenue from operations had increased by 48.88% from 2550.32 lakhs in Fiscal 2022 to 3796.92 lakhs in Fiscal

2023. This increase was due to increase in sales of products during the year. Since in the year 2023 company has increased its business promotion and marketing operations due to which the order book of the company has increased & in result the revenue of the company has also increased in year 2023 as compared to the fiscal year 2022.

Other Income

Other income had increased from 71.35 lakhs in Fiscal 2022 to 75.31 lakhs in Fiscal 2023 due to increase in Rent Income and Miscellaneous Income received. The companys interest income in the year 2022 was 32.03 Lakhs which increased in the year 2023 to 22.88 Lakhs. Further in the year 2022 the company has received Miscellaneous Income (income on sale of vehicle, accounts written off etc) amounting to 2.50 Lakhs which got increased to 15.92

Lakhs in the year 2023.

Cost of Material Consumed

Cost of Material Consumed had increased by 115.21% from 1028.91 lakhs in Fiscal 2022 to 2214.35 lakhs in

Fiscal 2023. This increase was due to increase in sales during the year.

Purchase of Stock in Trade

Purchase of Stock in Trade had increased by 23.24% from 471.39 lakhs in Fiscal 2022 to 580.93 lakhs in Fiscal

2023. This increase was due to increase in sales of trading products during the year.

Change in inventory of Stock in trade

Change in inventory of Stock in tradehad increased by 351.65% from (38.53) lakhs in Fiscal 2022 to (174.02) lakhs in Fiscal 2023. This increase was primarily due to higher closing inventories during the year. In the year 2023 we have higher order book which will scheduled to be delivered after March 31, 2023. Since delivery was due after March 31, 2023, our closing Inventories of Finished goods & Semi Finished goods got increased & due to this our changes in Inventories of Finished goods, Semi Finished Goods & Stock in Trade got increased.

Employee Benefit Expenses

Employee benefit expenses had increased by 19.42% from 302.09 lakhs in Fiscal 2022 to 360.77 lakhs in Fiscal 2023. This increase was primarily due to increase in salary & wages from 211.80 Lakhs in year 2022 to 233.51 Lakhs in year 2023, increase in Managerial Remuneration from 72.00 Lakhs in year 2022 to 91.00 Lakhs in year 2023 & increase in the staff welfare expenses from 11.67 lakhs in year 2022 to 30.23 Lakhs in year 2023.

Finance Cost

Finance Cost had increased by 81.49% from 59.70 lakhs in Fiscal 2022 to 108.35 lakhs in Fiscal 2023. This increase was primarily due to increase in Interest on borrowings during the year.

Depreciation and Amortization Expenses

Depreciation had increased by 202.74% from 34.99 lakhs in Fiscal 2022 to 105.93 lakhs in Fiscal 2023. Since in the year 2023 company has made capex of 708.30 Lakhs, due to which Depreciation has been increased significantly.

Other Expenses

Other expenses had increased by 0.49% from 425.07 lakhs in Fiscal 2022 to 427.17 lakhs in Fiscal 2023. The increase was primarily due to increase in Power and Fuel, Rent, Carriage Outward, Travelling and conveyance, Legal and Professional fees, Late Delivery Charges etc. In the year 2023, company has to incur additional power and fuel expenses due to increase in level of operation which got increased from 16.96 Lakhs to 52.76 lakhs in the year 2023. Furthermore, Carriage Outward has increased from 61.61 lakhs in the year 2022 to 116.93 lakhs in the year 2023, Legal and professional fees have increased form 23.39 Lakhs in the year 2022 to 32.28 Lakhs in the year

2023.

Share of Profit/ (Loss) from Associate

The Share of Profit/ (Loss) from Associate was 10.43 lakhs in the Fiscal 2023.

Tax Expenses

The Companys tax expenses had decreased by 15.46 lakhs from 82.90 lakhs in the Fiscal 2022 to 67.44 lakhs in Fiscal 2023. This was primarily due to decrease in current tax expenses during the year which got decreased from

83.48 Lakhs in the year 2022 to 43.76 lakhs in the year 2023 & increase in Deferred Tax Expenses from (0.58) Lakhs in the year 2022 to 16.11 lakhs in the year 2023.

Profit after Tax

After accounting for taxes at applicable rates, our Company reported a net profit of 191.74 lakhs in Fiscal 2023 as compared to a net profit of 287.04 lakhs in Fiscal 2022 which got decreased due to increased capital investment and the surge industry effect during the year.

Fiscal 2022 compared with Fiscal 2021

Revenue from Operation

Revenue from operations had increased by 22.09% from 2088.90 lakhs in Fiscal 2021 to 2550.32 lakhs in Fiscal

2022. This increase was due to increase in sales of products during the year. Since in the year 2022 company has increased its business promotion and marketing operations due to which the order book of the company has increased & in result the revenue of the company has also increased in year 2022 as compared to the fiscal year 2021.

Other Income

Other income had decreased by 21.39% from 90.77 lakhs in Fiscal 2021 to 71.35 lakhs in Fiscal 2022 due to decrease in receipt of Interest Income from 50.91 Lakhs in Fiscal 2021 to 32.03 Lakhs in Fiscal 2022.

Cost of Material Consumed

Cost of Material Consumed had increased by 11.19% from 925.36 Lakhs in the Fiscal 2021 to 1028.92 Lakhs in

Fiscal 2022. This was due to increase in level of operation by company during the year 2022.

Purchase of Stock in Trade

Purchase of Stock in Trade had increased by 73.09% from 272.34 lakhs in Fiscal 2021 to 471.39 lakhs in Fiscal

2022. This was primarily due to increase in level of operation of company.

Changes in Inventories of Stock in trade

Changes in Inventories of Stock in Trade had increased by 127.27% from 272.34 lakhs in Fiscal 2021 to (38.53) lakhs in Fiscal 2022. This increase was primarily due to higher closing inventories during the year. This increase was primarily due to higher closing inventories during the year. In the year 2022 we have higher order book which will scheduled to be delivered after March 31, 2022. Since delivery was due after March 31, 2022, our closing Inventories of Finished goods got increased & due to this our changes in Inventories of Finished goods, Semi Finished Goods & Stock in Trade got increased.

Employee Benefit Expenses

Employee benefit expenses had increased by 2.07% from 295.97 lakhs in Fiscal 2021 to 302.09 lakhs in Fiscal 2022. This increase was primarily due to increase in salary & wages from 182.74 Lakhs in year 2021 to 211.80

Lakhs in year 2022.

Finance Cost

Finance Cost had decreased by 20.18% from 74.79 lakhs in Fiscal 2021 to 59.70 lakhs in Fiscal 2022. This decrease was primarily due to decrease in interest on borrowings from 60.72 lakhs in Fiscal 2021 to 33.68 Lakhs in Fiscal

2022.

Depreciation and Amortization Expenses

Depreciation had decreased by 9.54% from 38.68 lakhs in Fiscal 2021 to 34.99 lakhs in Fiscal 2022.

Other Expenses

Other expenses had increased by 93.69% from 219.46 lakhs in Fiscal 2021 to 425.07 lakhs in Fiscal 2022. The increase was primarily due to increase in Power and fuel, Repair and Maintenance, Business Promotion Expenses, Carriage Outward, Travelling and conveyance, Printing charges etc. Further Repair and maintenance expenses has increased from 25.90 Lakhs in Fiscal 2021 to 84.50 lakhs, Printing Charges from 0.41 lakhs in Fiscal 2021 to 2.22 lakhs, Carriage Outward from 49.77 Lakhs in Fiscal 2021 to 61.61 Lakhs in Fiscal 2022, Travelling and conveyance from 30.45 Lakhs in Fiscal 2021 to 44.40 Lakhs in Fiscal 2022, Donation from 0.25 Lakhs in Fiscal 2021 to 10.08 Lakhs in Fiscal 2022 and Legal and Professional fees from 12.67 Lakhs in Fiscal 2021 to 23.39

Lakhs in Fiscal 2022.

Share in Profit/ (Loss) of Associate

The Share in Profit/ (Loss) of Associate for Fiscal 2022 is 31.91

Tax Expenses

The Companys tax expenses had increased by 27.50 lakhs from 55.40 lakhs in the Fiscal 2021 to 82.90 lakhs in Fiscal 2022. This was primarily due to increase in Current Tax Expenses from 52.22 Lakhs in Fiscal 2021 to

83.48 Lakhs in Fiscal 2022. The Current Tax Expenses has been increased due to higher profit during the year.

Profit after Tax

After accounting for taxes at applicable rates, our Company reported a net profit of 287.04 lakhs in Fiscal 2022 as compared to a net profit of 156.39 lakhs in Fiscal 2021. The company has made higher profit after tax in the fiscal

2022 due to higher revenue from operations during the year.

Cash Flows

( in lakhs)

Particulars	September 30, 2023	March 31, 2023	March 31, 2022	March 31, 2021
Net Cash from Operating Activities	114.09	170.15	757.03	517.77
Net Cash from Investing Activities	(19.00)	(676.11)	(1,181.06)	35.16
Net Cash from Financing Activities	72.41	342.85	274.24	(536.07)

Cash Flows from Operating Activities

Net cash from operating activities for period ended September 2023 was at 114.09 lakhs as compared to the Profit Before Tax at 313.15 lakhs. This was primarily due to adjustments against, changes in Working Capital & Income

Tax Paid.

Net cash from operating activities for fiscal 2023 was at 170.15 lakhs as compared to the Profit Before Tax at 248.75 lakhs while for fiscal 2022 net cash from operating activities was at 757.03 lakhs as compared to the Profit Before Tax at 338.03 Lakhs. This was primarily due to adjustments against, changes in Working Capital & Income Tax Paid.

Net cash from operating activities for fiscal 2022 was at 757.03 lakhs as compared to the Profit Before Tax at 338.03 lakhs while for fiscal 2021 net cash from operating activities was at 517.77 lakhs as compared to the Profit Before Tax at 211.79 Lakhs. This was primarily due to adjustments against adjustments against, changes in Working Capital & Income Tax Paid.

Cash Flows from Investment Activities

For the period ended September 2023, the net cash invested in Investing Activities was (19.00) lakhs. This was mainly on account of Purchases of Fixed Assets.

In fiscal 2023, the net cash invested in Investing Activities was (676.11) lakhs. This was mainly on account of

Purchases of Fixed Assets.

In fiscal 2022, the net cash invested in Investing Activities was (1181.06) lakhs. This was mainly on account of

Purchases of Fixed Assets.

In fiscal 2021, the net cash invested in Investing Activities was 35.16 lakhs. This was mainly on account of Purchases of Fixed Assets.

Cash Flows from Financing Activities

For the period ended September 2023, the net cash from financing activities was 72.41 lakhs. This was on account of proceeds from Long Term & Short-Term Borrowings.

In fiscal 2023, the net cash from financing activities was 342.85 lakhs. This was on account of proceeds from Long

Term & Short-Term Borrowings.

In fiscal 2022, the net cash from financing activities was 274.24 lakhs. This was on account of proceeds from Long

Term & Short-Term Borrowings.

In fiscal 2021, the net cash from financing activities was (536.07) lakhs. This was on account of proceeds from Long

Term & Short-Term Borrowings.

Information required as per Item (II) (C) (iv) of Part A of Schedule VI to the SEBI Regulations:

An analysis of reasons for the changes in significant items of income and expenditure is given hereunder:

1. Unusual or infrequent events or transactions

There has not been any unusual trend on account of our business activity. 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.

Except for any change in economic policy affecting our industry in India, there are no other significant economic changes that may materially affect or likely to affect income from continuing operations.

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

Apart from the risks as disclosed under Section "Risk Factors" beginning on page 28 in the Draft Red Herring Draft Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues

Our Companys future costs and revenues will be determined by growth of industry in which we operate.

5. Increases in net sales or revenue and Introduction of new products or increased sales prices

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

6. Status of any publicly announced New Products or Business Segment

Our Company has not announced any new Product.

7. Seasonality of business

Our Companys business is not seasonal.

8. Dependence on few customers/ clients

The percentage of contribution of our Companys Top Customers/Clients is as follows:

(Figures in percentages)

Particulars	September 30, 2023	March 31, 2023	March 31, 2022	March 31, 2021
Top Ten Customers (% of	88.35%	56.35%	60.59%	54.95%
revenue from operations)

9. Competitive conditions

Competitive conditions are as described under the Chapters titled "Industry Overview" and "Our Business" beginning on pages 110 and 130, respectively of the Draft Prospectus.

10. Details of material developments after the date of last balance sheet i.e. September 30, 2023

After the date of last Balance sheet i.e. September 30, 2023, the following material events have occurred after the last audited period.

a. The Board of our Company has approved to raise funds through Initial Public Offering in the board meeting held on February 3, 2024. b. The members of our Company approved proposal of Board of Directors to raise funds through initial public offering in the EOGM held on February 3, 2024. c. During the Financial Year 2023-24, the Company has accorded for the subdivision/split of its existing 10,000 equity shares of Rs. 100 each into 1,00,000 shares of Rs.10 each by way of passing resolution at EGM of the Company held at registered office of the Company on 18th December, 2023. d. The Company has allotted 1,57,00,000 equity shares via bonus issue in the Ratio of 1570:1 having face value of

Rs. 10 each, out of Reserves & Surplus, by way of passing Board Resolution for allotment of shares dated 20th December, 2023.