Renol Polychem Ltd Management Discussions

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion in conjunction with our restated financial statements attached in the chapter titled "Financial Information of the Company" beginning on page no. 221 You should also read the section titled "Risk Factors" on page no 32 and the section titled "Forward Looking Statements" on page no. 23 of this Red Herring Prospectus, which discusses a number offactors 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 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 which is included in this Red Herring Prospectus under "Financial Statements". The Restated 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.

Business Overview

Our Company was originally incorporated as a Partnership Firm in the name of Renol Enterprises on April 01, 2008. Subsequently our Partnership Firm was converted into Private Limited Company under the name of "Renol Polychem Private Limited" on January 09, 2024 under the provisions of the Companies Act, 2013 with the Registrar of Companies, Ahmedabad (Gujarat). Subsequently, the name of our company was changed from "Renol Polychem Private Limited" to "Renol Polychem Limited" and a Certificate of Incorporation pursuant to conversion into Public Limited dated June 19, 2024 issued by the Registrar of Companies, issued by the Registrar of Companies, Central Processing Centre.

We started our operations way back in the year 2008 in the name and style of M/s Renol Enterprise, a partnership firm and further commenced its operations as a Private company under the name and style of Renol Polychem Private Limited, since January 09, 2024.

Our Company is engaged in the manufacturing colour masterbatches, colour pigment, filler granule, anti-moisture powder, carbon noodles, superpack & onepack, impact modifier, processing AID and tinanium dioxide. We started our operations/ business at Rajkot in 2008 and commenced our manufacturing operations in 2020. Our company also specializes in manufacturing of customized masterbatch and pigments to suit the specific requirements of our customers/ manufacturers.

We are providing solutions such as all-in-one additive containing stabilisers, impact modifier, color pigments etc. to help the manufactures/ producers of UPVC, & CPVC pipes, Pipe fittings and manufacturing of other plastic products.

Renol is committed towards achieving customer satisfaction and performance excellence. Through leadership and teamwork, the company makes continual and timely improvements, focusing on meeting customer needs and the industrys highest standards. We achieve consistent quality performance by clear documentation of our systems and procedures, through ongoing training and from a sense of pride and ownership, at all levels of the organisation. As a result, we will continue to deliver quality products to increase our customers trust and satisfaction.

Our impressive growth has been largely due to confidence in its own capability, infrastructure and team created over the years. Our company has been steadily diversifying as well as adding new products to its portfolio, besides adding additional infrastructure for increasing its manufacturing capability for its existing products. Our Company actively works for the benefit of their employees and labourers with prime focus being health, hygiene and welfare of the workforce to ensure that the safety and management norms are being complied with.

Quality is of the paramount importance as it can essentially make or break a brand. A failure to maintain quality standard can prove to be extremely detrimental to the business of our Company. We give quality the utmost priority at

all stages of production to ensure our customers are thoroughly satisfied. We have levels of quality checks in place to make sure that the requisite quality of the product is being achieved at every stage of manufacture from raw materials to packaged stock. We constantly endeavour to maintain and exceed customer expectations consistently in all aspects of quality.

FINANCIAL SNAPSHOT

The following table sets forth a breakdown of our revenue from operations, as well as other key performance indicators, for the periods indicated:

Particulars	As on May 31, 2025	As on March 31, 2025	As on March 31, 2024	As on February 17, 2024	As on March 31, 2023
Revenue from operations (1)	1200.43	6229.90	644.93	4581.30	4166.77
Revenue CAGR (%) from FY 2023-2025(2)			14.35%
EBITDA(3)	160.18	707.48	217.90	370.48	113.54
EBITDA (%) Margin(4)	13.34%	11.36%	33.79%	8.09%	2.72%
EBITDA CAGR (%) from FY 2023-2025(5)			60.93%
EBIT(6)	159.60	719.45	223.24	375.16	129.67
ROCE (%)(7)	11.38%	64.18%	38.29%	106.11%	33.07%
Current Ratio(8)	2.20	2.25	2.28	1.03	1.52
Operating cash flow(9)	(109.22)	(124.53)	120.20	41.92	(111.04)
PAT(10)	114.12	499.68	153.39	241.07	72.81
PAT Margin (11)	9.51%	8.02%	23.78%	5.26%	1.75%
Net Worth (12)	1447.31	1333.20	869.30	246.24	270.63
ROE/ RONW(13)	8.21%	45.37%	27.50%	93.28%	31.74%
EPS(14)	2.08	9.10	2.79	NA	NA

Notes:

(1) Revenue from operations is the revenue generated from operations by our Company.

(2) Revenue CAGR: The three-year compound annual growth rate in Revenue. [(Ending Value/Beginning Value) A (1/N)]-1

(3) EBITDA is calculated as Profit before tax + Depreciation + Interest Expenses- other income

(4) EBITDA Margin is calculated as EBITDA divided by Revenue from Operations.

(5) EBITDA CAGR: The three-year compound annual growth rate in EBITDA. [(Ending Value/Beginning Value) A (1/N)]-1

(6) EBIT is Earnings before Finance Cost (only bank interest considers) and taxes.

(7) ROCE: Return on Capital Employed is calculated as EBIT divided by average capital employed, which is defined as shareholders equity plus long-term debt.

(8) Current Ratio: Current Asset over Current Liabilities

(9) Operating Cash Flow: Net cash inflow from operating activities

(10) PAT is mentioned as profit after tax for the period.

(11) PAT Margin is calculated as PATfor the period/year divided by revenue from operations.

(12) Net Worth means the aggregate value of the paid-up share capital and reserves and surplus of the company.

(13) ROE: Return on Equity is calculated as PAT divided by average shareholders equity.

(14) EPS: Earning per share is calculated as PAT divided by Weighted No. of equity shares.

Revenue from operation	Revenue from Operations is used by our management to track the revenue profile of the business and in turn helps to assess the overall financial performance of our Company and volume of our business.
Revenue CAGR %	Revenue CAGR informs the management of compounded annual growth rate i.e. Rate at which Companys revenue are growing on annual basis.
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
EBITDA CAGR %	EBITDA CAGR indicate our compounded growth of the business
EBIT
ROCE %	ROCE provides how efficiently our Company generates earnings from the capital employed in the business.
Current Ratio	Current ratio indicates the companys ability to bear its short-term obligations
Operating Cash Flow	Operating cash flow shows whether the company is able to generate cash from day- to-day business
PAT	Profit after Tax is an indicator which determine the actual earning available to equity shareholders
PAT Margin (%)	PAT Margin (%) is an indicator of the overall profitability and financial performance of the business.
Net Worth	Net worth is used by the management to ascertain the total value created by the entity and provides a snapshot of current financial position of the entity.
ROC/RONW	ROC/RONW (%) is an indicator which shows how much company is generating from its available shareholders funds
EPS	Earning per shares is the companys earnings available of one share of the Company for the period

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of Statement of Significant Accounting Policies, please refer to Annexure- IV of Financial Statements as Restated beginning on page no 221 of this Red Herring Prospectus.

Factors Affecting our Results of Operations

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 no 32 of this Red Herring prospectus. 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:

Any adverse changes in central or state government policies;

1. Any qualifications or other observations made by our statutory auditors which may affect our results of operations;

2. Loss of one or more of our key customers and/or suppliers;

3. An increase in the productivity and overall efficiency of our competitors;

4. Our ability to maintain and enhance our brand image;

5. Our reliance on third party suppliers for our raw materials;

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

7. Changes in technology and our ability to manage any disruption or failure of our technology systems;

8. 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;

9. The performance of the financial markets in India and globally;

10. Occurrences of natural disasters or calamities affecting the areas in which we have operations;

11. Market fluctuations and industry dynamics beyond our control;

12. Our ability to compete effectively, particularly in new markets and businesses;

13. Changes in foreign exchange rates or other rates or prices;

14. Inability to collect our dues and receivables from, or invoice our unbilled services to, our customers, our results of operations;

15. Other factors beyond our control;

16. Our ability to manage risks that arise from these factors;

17. Changes in domestic and foreign laws, regulations and taxes and changes in competition in our industry;

18. Termination of customer contracts without cause and with little or no notice or penalty; and

19. Inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals or noncompliance with and changes in, safety, health and environmental laws and other applicable regulations, may adversely affect our business, financial condition, results of operations and prospects.

Result of Operations

The following table sets forth select financial data from restated profit and loss accounts for the financial year(s)/

period ended on May 31, 2025, March 31, 2025, March 31, 2024, February 17, 2024 and March 31, 2023 and the

components of which are also expressed as a percentage of total income for such periods.

Particular	As at 31/05/20 25	% of Total Income	As at 31/03/20 25	% of Total Income	As at 31/03/2024	% of Total Income	As at 17/02/2024	% of Total Income	As at 31/03/2023	% of Total Income
I Revenue From Operations	1200.43	99.89	6,229.90	99.58	644.93	98.87	4,581.30	99.55	4,166.77	99.55
II Other Income	1.31	0.11	26.33	0.42	7.38	1.13	20.77	0.45	18.97	0.45
III Total Revenue (I + II)	1201.73	100.00	6,256.23	100	652.31	100.00	4,602.07	100.00	4,185.74	100.00
IV Expenses
Cost of Goods Sold	986.99	82.13	5,274.51	84.31	359.93	55.18	3,990.69	86.72	3,851.14	92.01
Employee Benefits Expenses	11.00	0.92	54.53	0.87	11.08	1.70	23.00	0.50	14.82	0.35
Finance Costs	7.88	0.66	59.84	0.96	10.19	1.56	52.57	1.14	36.22	0.87
Depreciation and Amortization Expense	1.89	0.16	14.36	0.23	2.04	0.31	16.10	0.35	2.85	0.07
Other Expenses	41.58	3.46	186.59	2.98	51.24	7.85	180.55	3.92	182.56	4.36
Total Expenses	1049.34	87.32	5,589.83	89.35	434.48	66.61	4,262.91	92.63	4,087.60	97.66
V Profit before tax (III- IV)	152.40	12.68	666.39	10.65	217.82	33.39	339.16	7.37	98.14	2.34
VI Prior Period Item	-	-	-		-		-		-
VI I Extraordinary Items	-	-	-		-		-		-
VII I Profit before tax (V+VI)	152.40	12.68	666.39	10.65	217.82	33.39	339.16	7.37	98.14	2.34
IX Tax Expense
a) Current Tax	(38.36)	(3.19)	(167.9 0)	-2.68	(64.78)	(9.93)	(100.87)	(2.19)	(25.52)	(0.61)
b) Deferred Tax	0.08	0.01	1.00	0.02	0.34	0.05	2.77	0.06	0.18	0.00
c) Short/Exces s Provision of Last Year
X Profit (Loss) for the period (VIII + XIV)	114.12	9.50	499.68	7.98	153.39	23.51	241.06	5.24	72.81	0.02

Bifurcation of PAT in Manufacturing and Trading Activity:

Particulars	As on May 31, 2025	As on March 31, 2025	From February 18, 2024 to March 31, 2024	From April 01, 2023 February 17, 2024	As on March 31, 2023
PAT from Manufacturing Activities	94.92	412.36	81.00	187.96	51.24
PAT from Trading Activities	19.20	86.86	72.39	53.11	21.57
Total PAT	114.12	499.22	153.39	241.07	72.81

*Note: The Profit after Tax (PAT) has been bifurcated between both activities based on the ratio of revenue generated from each activity.

FISCAL YEAR ENDED MARCH 31, 2025, COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2024

Justification for Increase in PAT and PAT Margin from Fiscal 2024 to Fiscal 2025 is as detailed herein below:

Particulars	Fiscal 2024 (I)	Fiscal 2025 (II)	Difference (II-I)
A. Revenue from Operations	5,226.23	6,229.90	19.20%
B. Less: Cost of Goods Sold	4,350.63	5,274.51	21.24%
C. Proportion of COGT to Revenue from Operations (B/A)	83.25%	84.66%	(1.41%)
D. Gross Profit (A-B)	875.60	955.39	9.11%
E. Gross Profit Ratio (D/A)	16.75%	15.34%	(1.41%)
F. Less: Other Expenses*	481.15	455.71	(5.29%)
G. Net Profit (D-F)	394.45	499.68	26.67%
Net Profit Ratio (G/A)	7.55%	8.02%	0.47%

*Other Expenses includes Employee Benefit Expenses, Finance Costs, Depreciation & Amortization, Income Tax Expenses and Deferred Tax Expense.

With reference to the table given above, we can observe that the PAT Margin has increased by 8.02% from Fiscal 2024 to Fiscal 2025. The main reason for increase in PAT Margin is due to the increase in Gross Profit of the Company from Rs. 875.60 Lakhs in Fiscal 2024 to Rs. 955.39 Lakhs in Fiscal 2025.

From the table mentioned above, it can be concluded that the GP Ratio was decreased by 1.41% from Fiscal 2024 to Fiscal 2025. The main reason for decrease in Gross Profit Ratio is that the Cost of Goods Sold was increased by 21.24% (4,350.63 - 5,274.51/ 4,350.63) whereas Revenue from operation increased by 19.20% (5,226.23 - 6,229.90/ 5,226.23). Therefore, in light of the above table, it is clearly evident that the Cost of Goods Sold was increased by Rs. 923.88 Lakhs from Fiscal 2024 to Fiscal 2025 whereas the Revenue from Operations was increased by Rs. 1,003.67 Lakhs from Fiscal 2024 to Fiscal 2025 which directly contributed to increase in PAT.

The Proportion of Cost of Goods Sold to Revenue from Operations was 83.25% in Fiscal 2024 which was increased to 84.66% in Fiscal 2025. This increase in proportion of Cost of Goods Sold resulted in decrease in Gross Profit. The main reason behind the increase in proportion of Cost of Goods Sold was because the Company increased its proportion of manufacturing activities from Fiscal 2024 to Fiscal 2025. The average capacity utilization was 83.77 % in Fiscal 2024 which increased to 81.16% in Fiscal 2025. Following table depicts the calculation of Capacity Utilization during Fiscal 2024 and 2025:

Capacity Utilization*:

	2024-25		% of	2023-24		% of Capacity Utilization
	Installed	Utilized	Capacity Utilization	Installed	Utilized
Mixture Machine	6,200	4314	69.58	6,200	5,700	91.94
Filler Extruder Machine	480	432	90.00	480	430	89.58
Master Batch Extruder Machine	960	890	92.71	960	900	93.75
Master Batch Pulverizing Machine	1080	1010	93.52	1,080	970	89.81
Carbon Noodle Extruder Machine	780	468	60.00	780	420	53.85
Average Capacity Utilization			81.16	Average Capacity Utilization		83.77

*As per the certificate dated Julu 15, 2025, received from Bhavin Patel & Associates, Chartered Engineer.

Based on the above facts and figures, we can conclude that the increase in PAT Margin was due to increase in revenue from operations by Rs. 1,003.67 Lakhs whereas the increase in Other Expenses was Rs. 25.14 Lakhs only. Therefore, the PAT increased from Rs. 394.45 Lakhs in Fiscal 2024 to Rs. 499.68 Lakhs in Fiscal 2025 (net increase of Rs. 105.23 Lakhs).

FISCAL YEAR ENDED MARCH 31, 2024, COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2023

Justification for Increase in PAT and PAT Margin from Fiscal 2023 to Fiscal 2024 is as detailed herein below:

Particulars	Fiscal 2023 (I)	Fiscal 2024 (II)	Difference (II-I)
A. Revenue from Operations	4,166.77	5,226.23	1,059.46
B. Less: Cost of Goods Sold	3,851.14	4,350.63	499.48
C. Proportion of COGT to Revenue from Operations	92.43%	83.25%	9.18%
(B/A)
D. Gross Profit (A-B)	315.63	875.61	559.98
E. Gross Profit Ratio (D/A)	7.57%	16.75%	9.18%
F. Less: Other Expenses*	242.81	481.15	238.34
G. Net Profit (D-F)	72.81	394.46	321.65
Net Profit Ratio (G/A)	1.75%	7.51%	5.76%

*Other Expenses includes Employee Benefit Expenses, Finance Costs, Depreciation & Amortization, Income Tax Expenses and Deferred Tax Expense.

With reference to the table given above, we can observe that the PAT Margin has increased by 5.77% from Fiscal 2023 to Fiscal 2024. The main reason for increase in PAT Margin is due to the increase in Gross Profit of the Company from Rs. 315.63 Lakhs in Fiscal 2023 to Rs. 875.60 Lakhs in Fiscal 2024.

From the table mentioned above, it can be concluded that the GP Ratio was increased by 9.18% from Fiscal 2023 to Fiscal 2024.The main reason for increase in Gross Profit Ratio is that the Cost of Goods Sold was increased by 11.48% (4,350.63 - 3,851.14/ 4,350.63) whereas Revenue from operation increased by 25.437% (5,226.23 - 4,166.77/ 5,226.23). Therefore, in light of the above table, it is clearly evident that the Cost of Goods Sold was increased by Rs. 499.48 Lakhs from Fiscal 2023 to Fiscal 2024 whereas the Revenue from Operations was increased by Rs. 1,059.46 Lakhs from Fiscal 2023 to Fiscal 2024 which directly contributed to increase in PAT.

The Proportion of Cost of Goods Sold to Revenue from Operations was 92.43% in Fiscal 2023 which was decreased to 83.24% in Fiscal 2024. This reduction in proportion of Cost of Goods Sold resulted in increase in Gross Profit. The main reason behind the reduction in proportion of Cost of Goods Sold was because the Company increased its proportion of manufacturing activities from Fiscal 2023 to Fiscal 2024. The average capacity utilization was 59.47% in Fiscal 2023 which increased to 83.79% in Fiscal 2024. Following table depicts the calculation of Capacity Utilization during Fiscal 2023 and 2024:

Capacity Utilization*:

	2023-24		% of	2022-23		% of Capacity
	Installed	Utilized	Capacity Utilization	Installed	Utilized	Utilization
Mixture Machine	6200	5700	91.94%	6200	3850	62.10%
Filler Extruder Machine	480	430	89.58%	480	300	62.50%
Master Batch Extruder Machine	960	900	93.75%	960	480	50.00%
Master Batch Pulverizing Machine	1080	970	89.81%	1080	600	55.56%
Carbon Noodle Extruder Machine	780	420	53.85%	780	524	67.18%
Average Capacity Utilization			83.77%	Average Capacity Utilization		59.47%

*As per the certificate dated July, 15 2025 received from Bhavin Patel & Associates, Chartered Engineer.

Based on the above facts and figures, we can conclude that the increase in PAT Margin was due to increase in Gross Profit by Rs. 559.98 Lakhs whereas the increase in Other Expenses was Rs. 238.34 Lakhs only. Therefore, the PAT increased from Rs. 72.81 Lakhs in Fiscal 2023 to Rs. 394.45 Lakhs in Fiscal 2024 (net increase of Rs. 321.64 Lakhs).

Rationale for increase in PAT and PAT margin of the Company in the stub period

The Company has achieved revenue from operations of Rs. 1,200.43 Lakh in the stub period, compared to Rs. 6,229.90 Lakh in March 31, 2025. Additionally, the PAT margin of company has increase with 9.51% in the stub period and 8.02% as on March 31, 2025. The PAT margin calculation is provided below:

Particulars	As of May 31, 2025	As of March 31, 2025
Profit after Tax	114.12	499.68
Sales	1200.43	6,229.90
PAT Margin*	9.51%	8.02%

*PATMargin = Profit after Tax /Sales Main Components of our Profit and Loss Account Revenue from operations:

Revenue from operations mainly consists of revenue from sale of Goods. Other Income:

Our other income primarily comprises of Interest Income and other non-operating income.

Expenses:

Companys expenses consist of Cost of Goods Sold,, Employee benefits expense, Finance Cost, Depreciation and Amortization Expenses and other expenses.

Cost of Goods Sold:

Cost of Goods sold mainly consist of Opening stock, Purchases and Closing stock.

Employee benefits expense:

Employee benefits expense primarily comprises of Salaries, wages & bonus expenses etc.

Finance Cost:

Finance cost mainly included Bank Charges and Interest Expenses.

Depreciation and Amortization Expenses:

Depreciation includes depreciation on Furniture, Mobile, Air Cooler, Computer and Software, Vehicles, and Plant and Machineries etc.

Other Expenses:

Our other expenses consist of Freight and Transportation Charges, Labour Charges, Power Charges, Other Direct Expenses, Advertising Expenses, Audit & Accounting Fees, Import Expenses, Communication Expenses, Insurance Charges, Legal, Professional & Consultancy Charges, Brokerage and Commission, Office and General Expenses, Printing and Stationery, Repairing Expenses, Payment to Partners, ROC & Other Fees, Travelling and Conveyance Expense etc.

RESULTS OF OPERATIONS FOR THE PERIOD ENDED MAY 31, 2025

Revenues

Total Income:

Total income for the period starting from April 01, 2025 to May 31, 2025 stood at ? 1,201.73 Lakhs. The total income consists of revenue from the sale of goods and the other income.

Revenue from Operations

During the period, the net revenue from operation of our Company was ? 1,200.43 Lakhs. The main contribution to the revenue from operations is from the sale of goods.

Other Income:

During the period, the other income of our Company stood at ? 1.31 Lakhs. The main components of the other income are interest income.

Expenditure

Total Expenses

Total Expenses for the period ended May 31, 2025, stood at ? 1,049.34 Lakhs which includes the following:

Cost of Goods Sold

Cost of Goods Sold which is the sum of Purchase of Traded Goods & Change in Inventory. Thus, for the quarter ended May 31, 2025 it stood at ? 986.99 Lakhs which is bifurcated as follows:

Particulars	As at May 31, 2025
Purchases Cost	1,137.99
Add: Opening stock	926.84
Less: Closing Stock	1,077.84
COGS	986.99

Employee benefits expense:

The Employee benefit expense for the quarter ended May 31, 2025 stands at ? 11.00 Lakhs. The Total Employee Expenses constitutes of:

Particulars	As at May 31, 2025
Salaries, Wages and Bonus	11.00
TOTAL	11.00

Finance Costs

The Finance Cost for the quarter ended May 31, 2025, stood at ? 7.88 Lakhs, which includes:

Particulars	As at May 31, 2025
Bank Charges	0.68
Interest Expenses	7.20
TOTAL	7.88

Depreciation and Amortization Expenses:

The Depreciation and Amortization Expenses for the quarter ended May 31, 2025 stood at ? 1.89 Lakhs.

Other Expenses:

The Other Expenses for the quarter ended May 31, 2025, stood at ? 41.58 Lakhs, Other Expenses constitutes of:

Particulars	As at May 31, 2025
Direct Expenses
Freight and Transportation Charges	14.58
Labour Charges	1.33
Power Charges	1.33
Other Direct Expenses	4.15
Administrative Expenses
Audit & Accounting Fees	0.20
Import Expenses	5.29
Communication Expenses	0.07 0.33
Insurance Charges	0.01
Legal, Professional & Consultancy Charges	11.93
Office and General Expenses	0.39
Printing And Stationery	0.05
Repairing Expenses	0.34
ROC & Other Fees	0.45
Travelling And Conveyance Expense	1.46
Total	41.58

Restated Profit Before Tax:

As a result of the above factors, the restated Profit Before Tax for the quarter ending May 31, 2025 was ? 152.40 Lakhs.

Tax Expense

Tax Expense for the quarter ending May 31, 2025 stood at ? (38.36) Lakhs.

Restated Profit After Tax

As a result of the above factors, the restated Profit After Tax for the quarter ending May 31, 2025 stood at ? 114.12 Lakhs.

FISCAL YEAR ENDED MARCH 31, 2025, COMPARED WITH THE FISCAL YEAR ENDED MARCH 31,

2024

Set forth below is a discussion of our results of operations for financial year ended March 31, 2025 over March 31, 2024.

Revenues

Total Income:

Total income has increased from ? 5,254.38 Lakhs in year ended March 31, 2024 to ? 6,256.23 Lakhs in year ended March 31, 2025 with a resultant increase of 19.07% in year ended March 31, 2025 mainly due to significant increase in revenue from operations of the company.

Revenue from Operations:

Revenue from Operations has increased from ? 5,226.23 Lakhs in year ended March 31, 2024 to ? 6,229.90 Lakhs in year ended March 31, 2025 with a resultant increase of 19.20% in year ended March 31, 2025.

Other Income:

Other Income increased from ? 28.15 Lakhs in year ended March 31, 2024 to ? 26.33 Lakhs in year ended March 31,

2025 with decrease of 6.47 % in year ended March 31, 2025.

Expenditure Total Expenses

Total Expenses increased from ? 4,697.40 Lakhs in year ended March 31, 2024 to ? 5,589.83 Lakhs in year ended March 31, 2025 with a resultant increase of 19.00 % in year ended March 31, 2025.

Cost of Goods Sold

Cost of Good Traded increased from ? 4,350.63 Lakhs in year ended March 31, 2024 to ? 5,274.51 Lakhs in year ended March 31, 2025 with a resultant increase of 21.23% in year ended March 31, 2025 where increase in COGS is in line with increase in Sale of Products.

Employee benefits expense:

Employee Benefit Expenses increased from ? 34.08 Lakhs in year ended March 31, 2024 to ? 54.53 Lakhs in year ended March 31, 2025 with a resultant increase of 60.00% in year ended March 31, 2025 mainly due to increase in the staff welfare expenses and salaries and wages including bonus.

Finance Cost

The Finance Cost decreased from ? 62.76 Lakhs in year ended March 31, 2024 to ? 59.84 Lakhs in year ended March 31, 2025 with decrease of 4.65% in year ended March 31, 2025.

Depreciation and Amortization Expenses:

Depreciation and amortization decrerased from ? 18.14 Lakhs in year ended March 31, 2024 to ? 14.36 Lakhs in year ended March 31, 2025 with a resultant decrease of 20.79% in year ended March 31, 2025 due to decrease of block value of assets.

Other Expenses:

Other expenses decreased from ? 231.79 Lakhs in year ended March 31, 2024 to ? 186.59 Lakhs in year ended March 31, 2025 with a resultant decrease of 19.50% in year ended March 31, 2025.

Restated Profit After Tax:

Net Profit after tax increased from ? 394.45 Lakhs in year ended March 31, 2024 to ? 499.68 Lakhs in year ended March 31, 2025 with a resultant increase of 26.67% in year ended March 31, 2025, major increase is due to increase in Sale of Goods which forms major portion of companys operations.

FISCAL YEAR ENDED MARCH 31, 2024, COMPARED WITH THE FISCAL YEAR ENDED MARCH 31,

2023

Set forth below is a discussion of our results of operations for financial year ended March 31, 2024 over March 31, 2023.

Revenues

Total Income:

Total income has increased from ? 4,185.74 Lakh for year ended March 31, 2023 to ? 5,254.38 Lakhs in year ended March 31, 2024 with a resultant increase of 25.53% in year ended March 31, 2024 mainly due to restructuring of business and significant increase in revenue from operations of the company.

Revenue from Operations:

Revenue from Operations has increased from ? 4,166.77 Lakh for year ended March 31, 2023 to ? 5,226.23 Lakhs in year ended March 31, 2024 with a resultant increase of 25.43% in year ended March 31, 2024.

Other Income:

Other Income increased from ? 18.97 Lakhs in year ended March 31, 2023 to ? 28.15 Lakhs in year ended March 31,

2024 with a resultant increase of 48.39 % in year ended March 31, 2024.

Expenditure Total Expenses

Total Expenses increased from ? 4,087.60 Lakhs in year ended March 31, 2023 to ? 4,697.40 Lakhs in year ended March 31, 2024 with a resultant increase of 14.91 % in year ended March 31, 2024.

Cost of Good Sold

Cost of Good Sold increased from ? 3,851.14 Lakhs in year ended March 31, 2023 to ? 4,350.63 Lakhs in year ended March 31, 2024 with a resultant increase of 12.97% in year ended March 31, 2024 where increase in COGS is in line with increase in Sale of Products.

Employee benefits expense:

Employee Benefit Expenses increased from ? 14.82 Lakhs in year ended March 31, 2023 to ? 34.08 Lakhs in year ended March 31, 2024 with a resultant increase of 129.96% in year ended March 31, 2024 mainly due to increase in the staff welfare expenses and salaries and wages including bonus.

Finance Cost

The Finance Cost increased from ? 36.22 Lakhs in year ended March 31, 2023 to ? 62.76 Lakhs in year ended March 31, 2024 with a resultant increase of 73.27 % in year ended March 31, 2024.

Depreciation and Amortization Expenses:

Depreciation and amortization increased from ? 2.85 Lakhs in year ended March 31, 2023 to ? 18.13 Lakhs in year ended March 31, 2024 with a resultant increase of 536.14 % in year ended March 31, 2024 due to increase in the value of property, plant and equipment & right of use assets.

Other Expenses:

Other expenses increase from ? 182.56 Lakhs in year ended March 31, 2023 to ? 231.79 Lakhs in year ended March 31, 2024 with a resultant increase of 26.97 % in year ended March 31, 2024.

Restated Profit After Tax:

Net Profit after tax increased from ? 72.81 Lakhs in year ended March 31, 2023 to ? 394.45 Lakhs in year ended March 31, 2024 with a resultant increase of 441.77% in year ended March 31, 2024, major increase is due to increase in Sale of Goods which forms major portion of companys operations.

CASH FLOWS

The following table sets forth certain information relating to our cash flows in the periods indicated:

Particulars	As at 31/05/2025	FY 2024-25	FY 2023-24	FY 22-23
Net Cash flow from/ (used in) Operating Activities	(109.22)	(124.53)	162.12	(111.04)
Net cash flow from/ (used in) investing activities	(4.42)	(40.10)	(35.17)	1.64
Net cash flow from/ (used in) financing activities	(174.46)	359.94	(37.65)	115.00
Cash and cash equivalents at the beginning of the period	296.68	101.37	23.09	6.49
Cash and cash equivalents at the closing of the period	8.58	296.68	112.38	12.08

CASH FLOWS FROM OPERATING ACTIVITIES For Financial Year Ended May 31, 2025

Net cash generated for operating activities was t (109.22) lakhs in May 31, 2025. Profit Before Tax was t152.40 Lakhs in May 31, 2025. Adjustments primarily consisted of depreciation & interest cost of t 1.89 Lakhs and interest Cost of t 7.88 Lakhs.

Our operating cash flow before working capital adjustments was t 162.16 Lakhs in May 31, 2025. The working capital adjustments in May 31, 2025 included, Trade Payable of t 259.67 Lakhs, Other Current Liabilities of t 1.14 Lakhs, Inventories of t (151) Lakhs, Trade Receivables of t (339.41) Lakhs, Other Current Assets of t (41.79) Lakhs.

For Financial Year Ended March 31, 2025

Net cash generated for operating activities was t (124.53) lakhs in March 31, 2025. Profit Before Tax was t 666.39 Lakhs in March 31, 2025. Adjustments primarily consisted of depreciation of t 14.36 Lakhs and Interest Cost of t 59.84 Lakhs.

Our operating cash flow before working capital adjustments was t 740.60 Lakhs in March 31, 2025. The working capital adjustments in March 31, 2025 included, Trade Payable of t (114.93) Lakhs, Other Current Liabilities of t 2.85 Lakhs, Inventories of t (234.69) Lakhs, Trade Receivables of t (276.47) Lakhs, Other Current Assets of t (40.47) Lakhs.

For Financial Year Ended March 31, 2024

Net cash generated for operating activities was t 162.12 Lakhs in March 31, 2024. Profit Before Tax was t 556.99 Lakhs in March 31, 2024. Adjustments primarily consisted of depreciation of t 18.14 Lakhs and Interest Cost of t 62.76 Lakhs.

Our operating cash flow before working capital adjustments was t 637.88 Lakhs in March 31, 2024. The working capital adjustments in March 31, 2024 included, Trade Payable of t 48.65 Lakhs, Other Current Liabilities of t 12.09 Lakhs, Inventories of t (381.67) lakhs, Trade Receivables of t (140.96) Lakhs, Other Current Assets of t (14.86) Lakhs and Tax & Other Adjustment of t 0.97 Lakhs.

For Financial Year Ended March 31, 2023

Net cash generated for operating activities was t (111.04) Lakhs in March 31, 2023. Profit before tax was t 98.14 Lakhs in March 31, 2023. Adjustments primarily consisted of depreciation of t 2.85 Lakhs and Interest Cost of t 36.22 Lakhs.

Our operating cash flow before working capital adjustments was t 137.22 Lakhs in March 31, 2023. The working capital adjustments in March 31, 2023 included, Trade Payable of t 120.44 Lakhs, Other Current Liabilities of t (19.58) Lakhs, Inventories of t (190.33) Lakhs, Trade Receivables of t (177.93) Lakhs and Other Current Assets of t 19.13 Lakhs.

CASH FLOWS FROM INVESTING ACTIVITIES For Financial Year Ended May 31, 2025

Net cash used for investing activities for the period ended May 31, 2025 was ? (4.42) Lakhs.

For Financial Year Ended March 31, 2025

Net cash used for investing activities for the period ended March 31, 2025 was ? (40.10) Lakhs.

For Financial Year Ended March 31, 2024

Net cash used for investing activities for the year ended March 31, 2024 was ? (35.17) Lakhs.

For Financial Year Ended March 31, 2023

Net cash used for investing activities for the year ended March 31, 2023 was ? 1.64 Lakhs.

CASH FLOWS FROM FINANCING ACTIVITIES For Financial Year Ended May 31, 2025

Net cash used in financing activities for the year ended May 31, 2025 was ? (174.46) Lakhs, Changes in Borrowing of ? (167.58), Movement in Loan & Advances and Other Assets of ? 1.00 Lakhs and Interest Cost of ? (7.88) Lakhs.

For Financial Year Ended March 31, 2025

Net cash used in financing activities for the year ended March 31, 2025 was ? 359.94 Lakhs, Changes in Borrowing of ? 437.57 Lakhs, Movement in Loan & Advances and Other Assets of ? (17.78) Lakhs and Interest Cost of ? (59.84) Lakhs.

For Financial Year Ended March 31, 2024

Net cash used in financing activities for the year ended March 31, 2024 was ? (37.65) Lakhs, primarily due to Changes in Equity of ? 177.73 Lakhs, Changes in Borrowing of ? (277.74) Lakhs, Movement in Loan & Advances and Other Assets of ? 125.12 Lakhs and Interest Cost of ? (62.76) Lakhs.

For Financial Year Ended March 31, 2023

Net cash used in financing activities for the year ended March 31, 2023 was ? 115.00 Lakhs, primarily due to Changes in Equity of ? 4.35 Lakhs, Changes in Borrowing of ? 155.29 Lakhs, Movement in Loan & Advances and Other Assets of ? (8.42) Lakhs and Interest Cost of ? (36.22) Lakhs.

RELATED PARTY TRANSACTIONS

Related party transactions with certain of our promoters, directors and their entities and relatives primarily relates to remuneration, salary, loan and Issue of Equity Shares. For further details of related parties kindly refer chapter titled "Financial Statement as Restated" beginning on page no 221 of this Red Herring Prospectus.

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

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

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

Other than as described in the section titled Risk Factors beginning on page 32 of this Red Herring Prospectus, to our knowledge there are no known significant economic changes that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.

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

Apart from the risks as disclosed under Section "Risk Factors" beginning on page no 32 of the Red Herring 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 competition, demand/supply situation, interest rates quoted by banks & others. Also, the future costs and revenues can be indirectly impacted by an increase in the cost of services, manpower & cost of products.

5. Total turnover of each major industry segment in which our Company operates

The Company is in the services offerings that are vast and diverse, solutions such as all-in-one additive containing stabilisers, impact modifier, color pigments or additives to help the manufactures/ producers of UPVC, & CPVC pipes, Pipe fittings and manufacturing plastic products. Relevant industry data, as available, has been included in the chapter titled "Industry Overview" beginning on page no 123 of this Red Herring Prospectus.

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

Except as disclosed in the Chapter "Our Business" beginning on page no 150 of this Red Herring Prospectus, our Company has not announced any new product or service.

7. Seasonality of business

Our Companys business is not seasonal in nature.

8. Competitive conditions

Competitive conditions are as described under the Chapters "Industry Overview" and "Our Business" beginning on page nos 123 and 150 respectively of this Red Herring Prospectus.

9. Details of material developments after the date of last balance sheet i.e., May 31, 2025.