Repono Ltd Management Discussions

OPERATION

You should read the following discussion of our financial position and results of operations together with our Restated Financial Statements which have been included in this Red Herring Prospectus. The following discussion and analysis of our financial position and results of operations are based on our Restated Financial Statements for the stub period ended on June 30, 2024 for the Financial Years ended on March 31, 2025, March 31, 2024 and March 31, 2023, including the related notes and reports, included in this Red Herring Prospectus prepared in accordance with requirements of the Companies Act and restated in accordance with the SEBI Regulations, which differ in certain material respects from IFRS, U.S. GAAP and GAAP in other countries. Our Company has not attempted to explain those differences or quantify their impact on the financial data includedin this Red Herring Prospectus. It is urged that you consult your advisors regarding such differences and their impact on our Companys financial information. Our Financial Statements, as restated have been derived from our audited financial statements for the respectiveperiod and years. Accordingly, the degree to which our Restated Financial Statements will provide meaningful information to a prospective investor in countries other than India is entirely dependent on the readers level of familiarity with Ind GAAP, Companies Act, SEBI Regulations and other relevant accounting practices in India. Our fiscal year ended on March 31 of each year, so all references to a particular fiscal year (“Fiscal Year”) are to the twelve-month period ended on March 31 of that year.

This discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those described under “Risk Factors” and “Forward-Looking Statements” on page nos. 31 and 22, respectively, and elsewhere in this Red Herring Prospectus.

In this chapter, unless the context otherwise requires, any reference to “we”, “us” or “our” refers to Finelistings Technologies Limited, our Company. Unless otherwise indicated, financial information included herein are based on our “Restated Financial Statements"for the Financial Years ended on March 31, 2025, March 31, 2024 and March 31, 2023 on page no. 190 of this Red Herring Prospectus.

OVERVIEW:

Our Company was originally incorporated on February 06, 2017, as a Private Limited Company as ‘Repono Warehousing Private Limited under the provisions of the Companies Act, 2013 with the Registrar of Companies, Mumbai. The name of our Company was subsequently changed to “Repono Private Limited” on August 18, 2020 and received a Certificate of Incorporation dated September 10, 2020 from the Registrar of Companies Mumbai. Subsequently, our Company was converted into a Public Limited Company pursuant to Shareholders Resolution passed at Extra - Ordinary General Meeting of our Company held on July 29, 2024 and the name of our Company was changed to “Repono Limited”. A fresh Certificate of Incorporation consequent upon Conversion from Private Limited Company to Public Limited Company dated September 23, 2024 was issued by the Central Processing Centre, Haryana. The Corporate Identification Number of our Company is U74999MH2017PLC290217. For details regarding the changes in our name and registered office, please refer to the chapter titled ‘History and Certain Corporate Matters, on page no. 149 of this Red Herring Prospectus.

Repono is providing series across the Oil value chain. We are doing O&M of the (a) Crude Oil Terminal facility for one of the government-owned enterprise engaged in oil sector. We are also handling (b) Petro, Diesel, ATF and Ethanol for from one of the largest crude oil and natural gas producer. We also handle the very prestigious off-site terminal for Public Sector Enterprise. We are also into O&M of petrochemical warehousing and our customers are belongs to crude oil and natural gas industry, Public Sector Enterprise and others.

After the date of last Audited accounts i.e., March 31, 2025, the Directors of our Company confirm that, there have not been any significant material developments except as stated below:

> Our Company has allotted 50,00,000 Equity Shares on July 24, 2024 in the ratio of 2:1 i.e., Two bonus Equity Shares for every One Equity Share held on July 24, 2024.

> Board of Directors of the Company in their meeting held on September 24, 2024 has approved offer of an aggregate numberof 27,79,200 equity shares as Fresh Issue which was subsequently approved bymembers of the Company in the extra-ordinary general meeting held on September 25, 2024.

Our Companys future results of operations could be affected potentially by the following factors:

> Political Stability of the Country;

> World Economy;

> Government Regulation & Policies;

> Competition from existing players;

> F ailure to adapt to the changing technology in our industry of operation may adversely affect our business and financial condition;

> Dependency on our end customers;

> Disruption in supply of Raw Materials and Labour Supply at our facilities;

> Occurrence of Environmental Problems & Uninsured Losses;

> Conflicts of interest with affiliated companies, the Promoters group and other related parties;

> The performance of the financial markets in India and Globally;

> Our ability to expand our geographical area of Operation;

> Concentration of ownership among our Promoters.

> failure to comply with regulations prescribed by authorities of the jurisdictions in which we operate;

> Our ability to make interest and principal payments on our existing debt obligations and satisfy the other covenants contained in our existing debt agreements;

> Our ability to retain our key management persons and other employees

For Significant accounting policies please refer Significant Accounting Policies and Notes to accounts, under Chapter titled “Restated Financial Information” on page no. 190 of the Red Herring Prospectus.

MANAGEMENTDISCUSSIONONRESULTOFOPERATIO^^^^^

I Revenue from operations	99.07%	511,154.64	99.61%	340,058.58	99.94%	130,138.33
II Other Income	0.93%	4,786.59	0.39%	1,348.18	0.06%	79.81
III Total Income (I+II)	100%	515,941.23	100.00%	341,406.76	100.00%	130,218.14
Expenses:
(a) Cost of Revenue	32.66%	168,485.77	47.94%	163,656.04	46.21%	60,179.95
(b) Purchases of stock-intrade	1.13%	5,822.04	1.65%	5,640.64	0.45%	587.62
(c) Changes in inventories of finished goods and work- in- progress	-0.18%	(907.34)	-0.41%	(1,385.01)
(d) Employee benefits expense	37.85%	195,307.61	25.33%	86,461.50	32.15%	41,866.01
(e) Finance costs	1.12%	5,753.48	0.23%	787.36	0.03%	41.23
(f) Depreciation and amortisation expense	1.58%	8,156.87	0.88%	2,999.82	2.02%	2,633.48
(g) Other expenses	11.85%	61,115.16	7.40%	25,252.97	13.28%	17,289.91
IV Total expenses	86.00%	443,733.59	83.01%	283,413.34	94.15%	122,598.19
V Profit /(Loss) before tax and Exceptional	14.00%	72,207.64	16.99%	57,993.42	5.85%	7,619.95
Items (III-IV)
VI Exceptional Items				-		-
VII Profit /(Loss) before tax (V-VI)	14.00%	72,207.64	16.99%	57,993.42	5.85%	7,619.95
VIII Tax expense:
(a) Current tax expense Less: MAT credit setoff	4.13%	21,315.31	4.69%	16,017.13	1.54%	2,007.92
(b)Short/(Excess) provision of tax for earlier years	0.09%	454.42	0.14%	493.73		-
(c) Deferred tax charge/(credit)	-0.20%	(1,052.50)	-0.10%	(339.07)	0.32%	411.10
	4.02%	20,717.24	4.74%	16,171.79	1.86%	2,419.02
IX Profit after tax for the period (VII-VIII)	9.98%	51,490.41	12.25%	41,821.63	3.99%	5,200.93
X Minority Interest Share					0.00%	(3.80)
XI Owned Profit after tax for the period (IX-X)	9.98%	51,490.41	12.25%	41,821.63	4.00%	5,204.73

Main Components of our Profit and Loss Account Income

Our total income comprises revenue from operations and other income.

Revenue from Operations

Our revenue from operations as a percentage of total income was 99.07%, 99.61%, and 99.94% for the years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively. The revenue primarily includes income from warehousing rental services, operation and maintenance services, consultancy services, and clearing and forwarding services. The growth observed is mainly attributable to new customer acquisitions and an increase in service demand across segments.

Other Income

Other income consists primarily of interest income, rental income from various equipment, and other miscellaneous sources. As a percentage of total income, other income was 0.93%, 0.39%, and 0.06% for the years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively.

Expenditure

Our total expenditure includes the cost of revenue, purchase of stock in trade, employee benefit expenses, finance costs, depreciation and amortization expenses, and other expenses.

Cost of Revenue

The cost of revenue as a percentage of total income was 32.66%, 47.94%, and 46.21% for the years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively. It primarily includes contract charges, logistics charges, consultancy fees, and equipment rental expenses.

Purchases of Stock-in-Trade

Purchases of stock-in-trade accounted for 1.13%, 1.65%, and 0.45% of total income for the years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively. This expenditure reflects procurement related to material or goods used in delivering services and varies with operational requirements.

Changes in Inventories

Changes in inventories of finished goods and work-in-progress as a percentage of total income were -0.18%, -0.41%, and not applicable for the years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively. This fluctuation is due to the minimal holding of inventory inherent to our service-oriented operations.

Employee Benefit Expenses

Employee benefit expenses were 37.85%, 25.33%, and 32.15% of total income for the years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively. The following are part of the employees benefits expense that is salaries and wages of the employees, directors remunerations, gratuity, contributions to provident fund and esic, staff & labour welfare expenses.

Finance Costs

Finance costs represented 1.12%, 0.23%, and 0.03% of total income for the years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively. The finance costs reflects borrowings cost that is interest expense and cost of borrowings that is bank guarantee charges and processing charges.

Depreciation and Amortization

Depreciation and amortization expenses as a percentage of total income were 1.58%, 0.88%, and 2.02% for the years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively.The depreciation is attributed to additional capital investments in technology and infrastructure over the period.

Other Expenses

Other expenses constituted 11.85%, 7.40%, and 13.28% of total income for the years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively.These expenses include administrative costs, utilities, and professional fees. site expenses, office expenses, legal & professional & consultancy charges, rent expenses & warehouse charges, tour & travelling expense.

Profit Before Tax and Exceptional Items

Profit before tax and exceptional items as a percentage of total income stood at 14.00%, 16.99%, and 5.85% for the years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively. The improvement in profitability is primarily driven by revenue growth and more efficient cost management, particularly in direct costs and other expenses.

Tax Expense

Tax expense, including current tax, deferred tax, and adjustments for earlier years, accounted for 4.02%, 4.74%, and 1.86% of total income for the years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively. It includes tax expense as per the income tax act 1961 & Deferred tax accounted for where applicable.

Profit After Tax

Profit after tax as a percentage of total income was 9.98%, 12.25%, and 3.99% for the years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively.

Review of our Restated Financial Statements

Fiscal 2025 compared with Fiscal 2024

Revenue from Operations

In FY 2025, revenue from operations increased by Rs.171,096.06 (In ‘000) or 50.31%, from Rs.340,058.58 (In ‘000) in FY 2024 to ^511,154.64 (In ‘000) in FY 2025. This growth was driven by increased scale of operations, execution of new high-value contracts, and continued expansion into new geographies. The company benefited from enhanced operational efficiency and further consolidation of strategic partnerships with both domestic and international clients, which contributed to the strong growth momentum seen during the year.

Other Income

Other income increased by Rs.3,438.41 (In ‘000) or 255.11%, from ^1,348.18 (In ‘000) in FY 2024 to Rs.4,786.59 (In ‘000) in FY 2025. The increase was mainly due to higher interest income from surplus cash deployment, rental income from equipment, and returns from short-term financial placements made with group companies.

Total Income (I+II)

Total income for FY 2025 increased by Rs.174,534.47 (In ‘000) or 51.11%, from Rs.341,406.76 (In ‘000) in FY 2024 to ^515,941.23 (In ‘000) in FY 2025. This growth was led by a significant rise in operating revenues and robust performance in other income streams, supported by a steady expansion in customer base and successful execution of multi-location projects.

Cost of Revenue

The cost of revenue increased by Rs.4,829.73 (In ‘000) or 2.95%, from Rs.163,656.04 (In ‘000) in FY 2024 to Rs.168,485.77 (In ‘000) in FY 2025. Despite the increase in absolute value, the cost of revenue as a percentage of total income decreased, reflecting better operational efficiencies and improved cost controls, even as the company scaled up its service delivery and project execution.

Purchases of Stock-in-Trade

Purchases of stock-in-trade increased by Rs.181.40 (In ‘000) or 3.22%, from Rs.5,640.64 (In ‘000) in FY 2024 to Rs.5,822.04 (In ‘000) in FY 2025. The marginal increase reflects consistent procurement requirements in line with site activities and ongoing projects.

Changes in Inventories of Finished Goods and Work-in-Progress

Inventory levels showed a reversal trend in FY 2025, with a decrease of Rs.477.67 (In ‘000) or 34.49%, from Rs.(1,385.01) (In ‘000) in FY 2024 to Rs.(907.34) (In ‘000) in FY 2025. The moderation in inventory reduction is reflective of stable and predictable inventory management practices based on improved project planning and material utilization.

Employee Benefits Expense

Employee benefits expense increased by Rs.108,846.11 (In ‘000) or 125.85%, from Rs.86,461.50 (In ‘000) in FY 2024 to Rs.195,307.61 (In ‘000) in FY 2025. The increase was due to a significant rise in hiring to meet project needs, higher wages, retention initiatives, and provisions related to employee welfare, including ESIC, gratuity, and provident fund contributions. As operations scaled, workforce expansion was essential to meet the growing demand.

Finance Costs

Finance costs increased by Rs.4,966.12 (In ‘000) or 630.91%, from Rs.787.36 (In ‘000) in FY 2024 to Rs.5,753.48 (In ‘000) in FY 2025. This rise is primarily due to increased borrowings for working capital and infrastructure investment, including higher interest expenses and fees such as bank guarantees and loan processing charges.

Depreciation and Amortisation Expense

Depreciation and amortisation expenses rose by Rs.5,157.05 (In ‘000) or 171.91%, from Rs.2,999.82 (In ‘000) in FY 2024 to Rs.8,156.87 (In ‘000) in FY 2025. The increase is due to significant additions to fixed assets during the year, including IT systems, office infrastructure, and capital-intensive equipment required for large-scale contract execution.

Other Expenses

Other expenses increased by Rs.35,862.19 (In ‘000) or 141.96%, from Rs.25,252.97 (In ‘000) in FY 2024 to ^61,115.16 (In ‘000) in FY 2025. This sharp increase is primarily attributable to higher business promotion, professional consultancy, administrative overheads, site operation costs, travel, and warehouse rentals. The growth reflects the broader scale and complexity of operations across more geographies.

Total Expenses

Total expenses increased by Rs.160,320.25 (In ‘000) or 56.56%, from Rs.283,413.34 (In ‘000) in FY 2024 to Rs.443,733.59 (In ‘000) in FY 2025. This increase mirrors the expansion in business activities and related resource and infrastructure deployment, while overall expense management ensured that margins improved year-on-year.

Profit/(Loss) Before Tax and Exceptional Items

Profit before tax and exceptional items increased by Rs.14,214.22 (In ‘000) or 24.51%, from Rs.57,993.42 (In ‘000) in FY 2024 to Rs.72,207.64 (In ‘000) in FY 2025. This growth was enabled by strong revenue growth, stable operational costs, and improved capacity utilization, indicating improved profitability even amid a steep rise in employee and administrative expenses.

Tax Expenses

Tax expenses increased by Rs.4,545.45 (In ‘000) or 28.11%, from ^16,171.79 (In ‘000) in FY 2024 to Rs.20,717.24 (In ‘000) in FY 2025. The increase was proportionate to the rise in pre-tax profits and includes current tax, deferred tax adjustments, and provisions for prior years.

Profit After Tax

Profit after tax increased by Rs.9,668.78 (In ‘000) or 23.12%, from Rs.41,821.63 (In ‘000) in FY 2024 to Rs.51,490.41 (In ‘000) in FY 2025. The growth in net profit reflects enhanced revenue realization, cost optimization, and higher interest and rental income. The businesss continued scale-up and diversification into multiple service areas contributed to its improved financial performance.

Fiscal 2024 compared with Fiscal 2023

Revenue from Operations

In FY 2024, revenue from operations increased by Rs.2,09,920.25 (In ‘000) or 161.31%, from ^1,30,138.33 (In ‘000) in FY 2023 to Rs.3,40,058.58 (In ‘000) in FY 2024. The significant growth is attributed to higher revenue from operations and better operational performance and along growth in the numbers of works contracts which had increased scope of business in different regions of the country along benefits of tie-up with the international companies for works contract results to the such significant revenue growth and also due to lower number of contracts as during Covid period no new contracts were awarded, or substantially delayed by the principal/ clients.

Other Income

Other income increased by Rs.1,268.37 (In ‘000) or 1588.93%, from Rs.79.81 (In ‘000) in FY 2023 to ^1,348.18 (In ‘000) in FY 2024. The increase was primarily driven by income from other sources like rental income and interest on fixed deposits and short term deposits given to its group of companies that were more substantial in FY 2023-2024.

Total Income (I+II)

Total income for FY 2024 grew by Rs.2,11,188.62 (In ‘000) or 162.17%, from ^1,30,218.14 (In ‘000) in FY 2023 to Rs.3,41,406.76 (In ‘000) in FY 2024, driven by significant growth in both revenue from operations and other income. Our revenue from operations is significantly affected by the number of customers we have. Our service quality, reach and efficiency, coupled with deep integration with our customers supply systems and business processes have led to high customer retention rates and enabled us to gain new customers.

Cost of Revenue

The cost of revenue increased by Rs.1,03,476.09 (In ‘000) or 171.98%, from Rs.60,179.95 (In ‘000) in FY 2023 to Rs.1,63,656.04 (In ‘000) in FY 2024. This increase was in line with higher operational activity and sales volume. Revenue from contracts with customers is recognised when cost of the services are transferred to the customer at an amount that reflects the consideration to which our company expects to be entitled in exchange for those services. The cost of revenue is directly related to the revenue from its operations as it includes the contract charges,logistics charges, consultancy charges and equipments and rental cost.

Purchases of Stock-in-Trade

Purchases of stock-in-trade increased by Rs.5,053.02 (In ‘000) or 860.23%, from Rs.587.62 (In ‘000) in FY 2023 to Rs.5,640.64 (In ‘000) in FY 2024. The rise reflects higher procurement of Consumable goods for employees working on the site of the customers.

Changes in Inventories of Finished Goods and Work-in-Progress

Changes in inventories decreased by Rs.1,385.01 (In ‘000) in FY 2024, reflecting a more efficient management of stock compared to FY 2023, where there was no significant change reported.

Employee Benefits Expense

Employee benefits expense increased by Rs.44,595.49 (In ‘000) or 106.50%, from Rs.41,866.01 (In ‘000) in FY 2023 to Rs.86,461.50 (In ‘000) in FY 2024. This growth reflects higher employee costs due to expansion, hiring, and increments. Along with the increase in the contracts more employees are hired as per terms of contracts with the customers.

Finance Costs

Finance costs increased by Rs.746.13 (In ‘000) or 1809.78%, from Rs.41.23 (In ‘000) in FY 2023 to Rs.787.36 (In ‘000) in FY 2024, largely due to higher borrowing taken from the banks for the short term and long term purpose which leads to the substantially increase in the interest costs during the year along with the bank guarantee charges.

Depreciation and Amortisation Expense

Depreciation and amortisation expenses increased by Rs.366.34 (In ‘000) or 13.91%, from Rs.2,633.48 (In ‘000) in FY 2023 to Rs.2,999.82 (In ‘000) in FY 2024. The increase was due to the addition of new fixed assets during the year.the addition of the assets are office equipments, motor vehicles, computers etc.

Other Expenses

Other expenses increased by Rs.7,963.06 (In ‘000) or 46.06%, from Rs.17,289.91 (In ‘000) in FY 2023 to Rs.25,252.97 (In ‘000) in FY 2024. The rise is mainly due to higher administrative for like business development expense Business promotion related expense which have been increase and , operational expense like site expense ,repair and maintainence & power and fuel charges , rent & warehouse expense and miscellaneous expenses like travelling expense.

Total Expenses

Total expenses increased by ^1,60,815.15 (In ‘000) or 131.21%, from ^1,22,598.19 (In ‘000) in FY 2023 to Rs.2,83,413.34 (In ‘000) in FY 2024, reflecting the overall increase in operational activity cost, employee benefits, and other costs.

Profit/(Loss) before Tax and Exceptional Items

Profit before tax and exceptional items increased by Rs.50,373.47 (In ‘000) or 661.15%, from Rs.7,619.95 (In ‘000) in FY 2023 to Rs.57,993.42 (In ‘000) in FY 2024. Profit before tax was down in the last year ( FY22-23) due to lower number of contracts as during Covid period no new contracts were awarded, or substantially delayed by the principal/ clients. Profit before tax was 5.85% in the previous years, now the business is more matured, and we have experience to bid for the higher margin contacts.

Tax Expenses

Tax expenses increased by Rs.13,752.77 (In ‘000) or 568.34%, from Rs.2,419.02 (In ‘000) in FY 2023 to ^16,171.79 (In ‘000) in FY 2024. The rise was due to higher profitability, resulting in a greater tax liability.

Profit after Tax

Profit after tax increased by Rs.36,620.70 (In ‘000) or 703.87%, from Rs.5,200.93 (In ‘000) in FY 2023 to ^41,821.63 (In ‘000) in FY 2024. The growth in profitability was a result of increased revenue and a significant rise in other income.

Cashflow

Particulars	March 31, 2025	March 31, 2024	March 31, 2023
Net cash (used in)/ Generated from operating activities	3,296.10	(261.84)	(10,318.75)
Net cash (used in)/ Generated from investing activities	(23,411.71)	(21,407.05)	(14,735.91)
Net cash (used in)/ Generated from finance activities	20,191.73	19,342.55	3,208.77
Net increase/ (decrease) in cash and cash equivalents	76.13	(2,326.33)	(21,845.89)
Cash and Cash Equivalents at the beginning of the period	507.44	2,833.76	24,679.66
Cash and Cash Equivalents at the end of period	583.56	507.44	2,833.77

Cash Flows from Operating Activities

Net cash generated from operating activities for the fiscal year ended March 31, 2025, was Rs.3,296.10 (In 000), marking a strong improvement from the net cash used of Rs.261.84 (In 000) in FY 2024 and Rs.10,318.75 (In 000) in FY 2023. The positive shift in operating cash flows is primarily due to improved operating margins, effective working capital management, and better collections from trade receivables. This also indicates strengthened operational efficiency and tighter controls over advances and current liabilities, allowing for better liquidity positioning.

In FY 2024, net cash used in operating activities was Rs.261.84 (In 000), reflecting a significant recovery compared to the outflow of Rs.10,318.75 (In 000) in FY 2023. The reduction in outflows was mainly due to strategic improvements in receivable collections and a more disciplined approach to managing payables and inventory turnover.

For FY 2023, net cash used in operating activities was Rs.10,318.75 (In 000), a deterioration from previous years. The decline was driven by increased trade receivables and working capital demands related to delayed contract executions and buildup of operational costs, which impacted short-term cash availability.

Cash Flows from Investment Activities

Net cash used in investing activities for FY 2025 was Rs.23,411.71 (In 000), slightly higher than Rs.21,407.05 (In 000) used in FY 2024 and ^14,735.91 (In 000) in FY 2023. The continuous outflow over the years is attributed to capital expenditures for acquiring new machinery, equipment, and technology upgrades to support operational expansion and service diversification. The increasing trend underscores the companys long-term investment strategy toward enhancing productivity and supporting growth.

In FY 2024, the outflow increased significantly compared to FY 2023, reflecting the companys focus on scaling operations by upgrading infrastructure and expanding fixed asset capacity.

In FY 2023, net cash used in investing activities stood at Rs.14,735.91 (In 000), in continuation of capital investments similar to prior periods, as the company remained committed to asset modernization and infrastructure development.

Cash Flows from Financing Activities

Net cash generated from financing activities for FY 2025 was Rs.20,191.73 (In 000), slightly lower than Rs.19,342.55 (In 000) generated in FY 2024, but significantly higher than Rs.3,208.77 (In 000) in FY 2023. The inflows in FY 2025 and FY 2024 reflect active financing strategies, including raising funds through bank borrowings and financing facilities to support increased operational scale and capital investment needs.

In FY 2024, net cash generated from financing activities was Rs.19,342.55 (In 000), showing a significant increase from the prior year. The rise was driven by new borrowings and structured debt instruments aimed at supporting strategic growth and operational ramp-up.

In FY 2023, net cash generated from financing activities was Rs.3,208.77 (In 000), demonstrating a positive turnaround from earlier periods, largely due to moderate borrowing to fund operations, indicating improved financing conditions and capital planning.

Net Increase / (Decrease) in Cash and Cash Equivalents

Net increase in cash and cash equivalents for FY 2025 was Rs.76.13 (In 000), a turnaround from the net decrease of Rs.2,326.33 (In 000) in FY 2024 and Rs.21,845.89 (In 000) in FY 2023. The improvement reflects better cash flow management across all activities?particularly from operating and financing sources?which offset the high capital expenditures during the year.

Cash and Cash Equivalents at Period End

Cash and cash equivalents stood at Rs.583.56 (In 000) as of March 31, 2025, compared to Rs.507.44 (In 000) in FY 2024 and Rs.2,833.77 (In 000) in FY 2023. Despite significant investments and operating demands, the company maintained a stable cash position, reflecting prudent liquidity management while pursuing growth initiative

Market risk is the risk of loss related to adverse changes in market prices, including interest rates. In the normal course of business, we are exposed to certain market risks including interest risk.

Interest rate risk

Interest rate risk results from changes in prevailing market interest rates, which can cause a change in the fair value of fixed- rate instruments and changes in the interest payments of the variable-rate instruments. Our operations are funded to a certain extent by borrowings. Our current loan facilities carry interest at variable rates as well as fixed rates. We mitigate risk by structuring our borrowings to achieve a reasonable, competitive cost of funding. There can be no assurance that we will be able to do so on commercially reasonable terms, that our counterparties will perform their obligations, or that these agreements, if entered into, will protect us adequately against interest rate risks.

Liquidity risk

Adequate and timely cash availability for our operations is the liquidity risk associated with our operations. Our Companys objective is to all time maintain optimum levels of liquidity to meet its cash and collateral requirements. We employee prudent liquidity risk management practices which inter-alia means maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities.

Credit Risk

We are exposed to the risk that our counterparties may not comply with their obligations under a financial instrument or customer contract, leading to a financial loss. We are exposed to credit risk from our operating activities, primarily from trade receivables. We consider our customers to be creditworthy counterparties, which limits the credit risk, however, there can be no assurance that our counterparties may not default on their obligations, which may adversely affect our business and financial condition.

Material Frauds

There is no material frauds committed against our Company in the last three financials year

Unusual or infrequent events or transactions

Except as described in this Red Herring Prospectus, there have been no other events or transactions to the best of our knowledge which may be described as “unusual” or “infrequent”.

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

Our business has been subject, and we expect it to continue to be subject to significant economic changes arising from the trends identified above in ‘Factors Affecting our Results of Operations and the uncertainties described in the section entitled “Risk Factors” beginning on page no. 31 of the Red Herring Prospectus. To our knowledge, except as we have described in the Red Herring Prospectus, there are no known factors which we expect to bringabout significant economic changes.

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 titled “Risk Factors” beginning on page no. 31, in this 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.

Future changes in relationship between costs and revenues, in case of events such as future increase in labour or material costs or prices that will cause a material change are known.

Our Companys future costs and revenues will be determined by demand/supply situation, government policies and other economic factor.

Extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or increased sales prices.

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

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

The Company is operating in Logistics industry. Relevant industry data, as available, has been included in the chapter titled “Industry Overview” on page 111 of this Red Herring Prospectus.

Status of any publicly announced new products or business segment.

Our Company has not announced any new services and product and segment / scheme, other than disclosed in this Red Herring Prospectus.

The extent to which business is seasonal.

Our Companys business is not seasonal. However, the business of the Company does depend on countrys economy situation and inflation.

Any significant dependence on a single or few suppliers or customers.

Our Company was significantly dependent on top 10 customers. For further details refer the chapter titled “Risk factor” and “Business Overview” on page 31 and 119 of Red Herring Prospectus.

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 competitors who have been discussed in section titles “Business Overview” beginning on page no. 119 , of this Red Herring Prospectus.