RFBL Flexi Pack Ltd Management Discussions

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion of our financial condition and results of operations together with our restated financial statements for the financial year ended 31st March 2025, 31st March 2024, 31st March 2023 and for the eight months ended on November 30, 2025 including the notes and significant accounting policies thereto and the reports thereon, which appear elsewhere in this RHP. You should also see the section titled "Risk Factors" beginning on page 32 of this RHP, which discusses a number of factors and contingencies that could impact our financial condition and results of operations. The following discussion relates to our Company, unless otherwise stated, is based on restated audited financial statements.

These financial statements have been prepared in accordance with Ind GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditors dated, January 10, 2026 which is included in this RHP under the section titled "Financial Information" beginning on page 241 of this RHP. The restated financial statements have been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. We do not provide a reconciliation of our restated financial statements to US GAAP or IFRS and we have not otherwise quantified or identified the impact of the differences between Indian GAAP and U.S. GAAP or IFRS as applied to our restated financial statements.

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" beginning on pages 32 and 21 respectively, and elsewhere in this RHP. Accordingly, the degree to which the financial statements in this RHP will provide meaningful information depends entirely on such potential investors level of familiarity with Indian accounting practices. Our F.Y. ends on March 31 of each year; therefore, all references to a particular fiscal are to the twelve-month period ended March 31 of that year. Please also refer to section titled "Certain Conventions, Use of Financial Information and Market Data and Currency of Presentation" beginning on page 18 of this RHP.

BUSINESS OVERVIEW

Our Company was incorporated as private limited Company under the name "Sabar Flexi Pack Private Limited", under the provisions of the Companies Act, 1956 and Certificate of Incorporation was issued by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli on July 11, 2005. Subsequently, the name of our Company was changed to "RFBL Flexi Pack Private Limited", pursuant to shareholders resolution passed at the general meeting of our Company held on December 28, 2022 and a fresh certificate of incorporation dated December 30, 2022 was issued to our Company by the Registrar of Companies, Ahmedabad, Subsequently, our Company was converted into a public limited company pursuant to shareholders resolution passed at the general meeting of our Company held on July 13, 2023, and the name of our Company was changed to "RFBL Flexi Pack Limited" and a fresh certificate of incorporation dated July 28, 2023, was issued by the Registrar of Companies, Ahmedabad.

Our company is primarily engaged in the business of manufacturing and trading of printed multilayer flexible packaging material such as plastic film rolls and pouches which are predominantly used for packaging applications across various industries. Our company also deals in trading of Woven Fabric Packaging Material and Polyster Laminated and other types of films. Scrap generated from business operations is further sold to business entities for their further processing and use. We operate under a Business to Business (B2B) model, catering to needs of clients who require high quality, customized packaging solutions. We specialize in the production of multilayer plastic films, by using manufacturing techniques to meet diverse packaging requirements. The key raw materials used in our production process include plastic films like Cast Polypropylene (CPP) films, Cast Polyethylene (CPE) films, BOPP Films, metallized films, laminated films etc., specialized adhesives, and inks, which are sourced from a network of reliable and reputed suppliers. Our products are engineered to issue durability, moisture resistance, barrier properties, making them highly suitable for a wide range of packaging applications. The end products find extensive usage in the packaging of goods in various industries, some of them are:

• Food - for packaging snacks, spices and grains etc.

• Pharmaceutical - for packaging of medical and healthcare products.

• Home and Personal Care - for items like detergents and household consumables.

Our company is engaged in both manufacturing as well as trading operations:

1. Manufacturing Business: The Company is engaged in the manufacturing of multilayer plastic packaging materials. The production process involves the use of raw materials such as Cast Polyethylene (CPE) films, Cast Polypropylene (CPP) films, inks, and adhesives. These materials are processed through lamination and other value-adding operations to produce customized flexible packaging solutions.

2. Trading Business: In addition to manufacturing, the Company is also involved in the trading of CPE and CPP films along with Woven Fabric packaging material. These films are sourced from manufacturers and supplied further to B2B customers.

For more details kindly refer our chapter titled "Our Business" on page 177 of this Red Herring Prospectus. SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL YEAR I.E. NOVEMBER 30, 2025.

In the opinion of the Board of Directors of our Company, there have not arisen, since the date of November 30,

2025 as disclosed in this Red Herring Prospectus, any significant developments or any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months except as follows:

1. Pursuant to the Board Resolution dated January 10, 2026, the Company has approved the Restated Financial Statements, Key Performance Indicators (KPIs), and the Objects of the Issue, including the projected working capital requirements and their key assumptions, as well as the total estimated cost of establishing a manufacturing facility, covering land acquisition, construction and development of infrastructure and associated facilities, and plant and machinery.

2. Pursuant to the Board Resolution dated February 23, 2026, the Promoters were identified for the purpose of the Draft Red Herring Prospectus/Red Herring Prospectus/Prospectus

3. The Company on February 25, 2026 filed the Adjudication Application under Section 454 of Companies Act, 2013 for default made under Section 92 and 129 of the Companies Act, 2013 by company arising from omission of details in Annual Filing Forms MGT-7A and AOC-4 for the Financial Year 2020-21.

4. Our Company has approved the Draft Red Herring Prospectus vide resolution in the Board Meeting dated March 13, 2026

5. Our Company has filed appeals before the Income Tax Appellate Tribunal for the Assessment Years 2014-15, 2015-16, 2016-17, 2017-18 and 2018-19, challenging the orders passed by the Commissioner of Income Tax (Appeals). Further, Our company has filed appeal before the Commissioner of Income Tax (Appeals) challenging the order passed by the Assessing Officer, for the Assessment Year 2024-25. The matters are currently pending adjudication. For further details, pertaining to material pending outstanding litigations see "Outstanding Litigation and Material Developments" on page 266 of this Red Herring Prospectus.

6. Our Company has approved the Red Herring Prospectus vide resolution in the Board Meeting dated May 05, 2026

KEY FACTORS AFFECTING THE RESULTS OF OPERATIONS:

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

• Changes in laws and regulations relating to the sectors/areas in which we operate;

• Our dependence on limited number of customers/suppliers/brands for a significant portion of our revenues;

• Any failure to comply with the financial and restrictive covenants under our financing arrangements;

• Our ability to retain and hire key employees or maintain good relations with our workforce;

• Impact of any reduction in sales of our products;

• Rapid Technological advancement and inability to keep pace with the change;

• Increased competition in industries/sector in which we operate;

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

• Changes in laws and regulations relating to the Sectors in which we operate;

• Political instability or changes in the Government in India or in the government of the states where we operate could cause us significant adverse effects;

• Failure to obtain any applicable approvals, licenses, registrations and permits in a timely manner;

• Occurrence of natural or man-made disasters could adversely affect our results of operations and financial condition and

• Our inability to successfully diversify our product offerings may adversely affect our growth and negatively impact our profitability.

KEY PERFORMANCE INDICATORS:

In evaluating our business, we consider and use certain key performance indicators that are presented below as Supplemental measures to review and assess our operating performance. The presentation of these key performance indicators is not intended to be considered in isolation or as a substitute for the Restated Financial Information included in this Red Herring Prospectus. We present these key performance indicators because they are used by our management to evaluate our operating performance. Further, these key performance indicators may differ from the similar information used by other companies and due to non-availability of peers company, comparability may be limited. Therefore, these matrices should not be considered in isolation or construed as an alternative to as measures of performance or as an indicator of our operating performance, liquidity, profitability or results of operation. A list of our KPIs for the eight months period ended November 30, 2025 and the Financial Years ended March 31, 2025, 2024 and 2023 is set out below:

Metric	As of and for the Fiscal
	30-11-2025	31-03-2025	31-03-2024	31-03-2023
Revenue From operations (Rs in Lakhs)	6,966.49	13,546.07	7,995.89	4,685.65
Total revenue (Rs in Lakhs)	6,966.49	13,546.19	7,996.46	4,686.48
EBITDA (Rs in Lakhs)	595.77	1,257.31	853.09	133.91
EBITDA Margin (%)	8.55%	9.28%	10.67%	2.86%
Profit after tax (Rs in Lakhs)	383.72	832.91	578.72	66.98
PAT Margin (%)	5.51%	6.15%	7.24%	1.43%
Return on Equity (ROE) (%)*	19.26%	60.18%	85.33%	21.76%
Return on Capital Employed(ROCE) (%)*	14.26%	32.70%	53.90%	19.26%
Debt To Equity Ratio	0.80	1.05	0.54	0.53
Current Ratio	2.27	2.21	1.62	1.41
Net Capital Turnover Ratio*	2.82	9.05	17.36	24.32

*Ratios for the period ended November 30, 2025 are not annualised.

Notes:

a) Revenue from Operations means the Revenue from Operations as appearing in the Restated Financial Statements.

b) EBITDA refers to earnings before interest, taxes, depreciation and amortization.

c) EBITDA Margin refers to EBITDA during a given period as a percentage of revenue from operations during that period.

d) PAT Margin quantifies our efficiency in generating profits from our revenue and is calculated by dividing our net profit after taxes by revenue from operations.

e) Return on equity (RoE) is equal to profit for the year divided by the Average total equity and is expressed as a percentage.

f) RoCE (Return on Capital Employed) (%) is calculated as EBIT divided by capital employed. Capital employed is calculated as Sum of Net worth, Total Debt and Deferred tax Liabilities.

g) Debt to Equity ratio is calculated by dividing the total debt by total equity.

h) Current Ratio is a liquidity ratio that measures our ability to pay short-term obligations (those which are due within one year) and is calculated by dividing the current assets by current liabilities.

i) Net Capital Turnover Ratio quantifies our effectiveness in utilizing our working capital and is calculated by dividing our revenue from operations by average working capital (i.e., current assets fewer current liabilities).

Explanation for KPI Metrics:

KPI	Explanations
Revenue from Operations (Rs in Lakhs)	Revenue from Operations is used by our management to track the revenue profile of the business and in turn helps assess the overall financial performance of our Company and size of our business.
Total Revenue	Total Revenue is used to track the total revenue generated by the business including other income.
EBITDA (Rs in Lakhs)	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.
Profit After Tax (Rs in Lakhs)	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.
RoE (%)	RoE provides how efficiently our Company generates profits from shareholders funds.
Return on Capital employed (RoCE) (%)	It is calculated as profit before tax plus interest costs divided by Capital Employed.
Debt To Equity Ratio	Debt-to-equity (D/E) ratio is used to evaluate a companys financial leverage.
Current Ratio	It tells management how business can maximize the current assets on its balance sheet to satisfy its current debt and other payables.
Net Capital Turnover Ratio	It shows how effectively can the management utilize the working capital in order to generate Revenue from operations.

OUR SIGNIFICANT ACCOUNTING POLICIES

A. Background of the company:

RFBL Flexi Pack Limited (the company) is a Public Company (Unlisted) domiciled in India having CIN: U25202GJ2005PLC046403. The registered office of the company is located at Survey No 32, Plot No 15, Behind Marutinandan Temple, Himatnagar, Sabarkantha, Gujarat - 383001. The Company is engaged in the business of dealing, manufacturing and trading in all types of Flexible Packaging Products in India. The company incorporated in name of Sabar Flexi Pack Private Limited on 11^th July, 2005. The name was subsequently changed to RFBL Flexi Pack Private Limited with effect from 30^th December, 2022 and further changed to RFBL Flexi Pack Limited with effect from 28^th July, 2023 as per permission affirmation by Central Government.

B. Statement of Significant Accounting Policies

1.1 Basis of Preparation of Restated Financial Information:

The restated financial information of the Company - the Restated Statement of Assets and Liabilities as at November 30, 2025, March 31, 2025, March 31, 2024 and March 31, 2023, the Restated Statement of Profit and Loss, Restated Statement of Cash Flows for the period ended November 30, 2025, March 31,2025, March 31, 2024 and March 31, 2023 and Notes to the Restated Financial Information and Statement of Adjustments to Audited Standalone Financial Statements (collectively, the Restated Financial Information).

These Restated Financial Information have been prepared by the Management of the Company for the purpose of inclusion in the Draft Red Herring Prospectus (DRHP) /Red Herring Prospectus (RHP)/Prospectus to be filed by the Company with the SME Platform of National Stock Exchange of India Limited ("NSE-SME")in connection with proposed Initial Public Offering ("IPO") of its equity shares.

The Restated Financial Information, which have been approved by the Board of Directors of the Company, have been prepared in accordance with the requirements of:

a) Section 26 of Part I of Chapter III of the Companies Act, 2013 (the "Act")

b) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended ("ICDR Regulations"); and

c) The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India ("ICAI"), as amended from time to time (the "Guidance Note").

The Restated Financial Information have been prepared from the audited financial statements of the Company as at and for the period ended November 30, 2025, March 31, 2025, March 31, 2024 and March 31, 2023 which are prepared in accordance with Accounting Standards (AS) specified under the Section 133 of the Companies Act, 2013 read together with the rule 7 of the companies (Accounts) Rules 2014 and Companies (Accounting Standard) amendment Rules 2016, which have been approved by the Board of Directors of the Company at their meetings on which an unmodified audit opinion was issued.

The financial statements are prepared on accrual basis under the historical cost convention, except for certain fixed Assets which are carried at revalued amounts. The financial statements are presented in Indian rupees.

The accounting policies have been consistently applied by the Company in preparation of the Restated Financial Information. This Restated Financial Information do not reflect the effects of events that occurred subsequent to the respective dates of auditors reports on the audited financial statements mentioned above.

The Restated Financial Information:

a) have been prepared after incorporating adjustments for the changes in accounting policies, material errors, if any, and regrouping/reclassifications retrospectively in the financial period ended November 30, 2025, March 31, 2025, March 31, 2024 and March 31, 2023 to reflect the same accounting treatment as per the accounting policies and grouping/classifications followed as at and for the period ended November 30, 2025.

b) do not require any adjustment for qualification as there are no qualifications in the underlying audit reports.

All the amounts included in the Restated Financial Information are presented in Indian Rupees (Rupees or Rs. Or INR) and are rounded to the nearest Lakhs, except per share data and unless stated otherwise.

1.2 Use of Estimates:

The preparation of Restated Financial Information in conformity with Indian GAAP requires management to make judgements, estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities and the disclosure of contingent assets and liabilities on the date of the Restated financial statements and the results of operations during the reporting periods. Although these estimates are based upon managements best knowledge of current events and actions, actual results could differ from those estimates and revisions, if any, are recognized in the current and future periods.

1.3 Property, Plant and Equipment:

Property, Plant and Equipment are carried at cost less accumulated depreciation/ amortization and impairment losses, if any. The cost of Property, Plant and Equipment comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gain or losses arising on retirement or disposal of property, plant and equipment are recognized in the Statement of Profit and Loss.

1.4 Depreciation:

Depreciation is provided as per straight line method over the useful lives of assets, which is as stated in and in the manner specified in the Schedule II of the Companies Act 2013.

Depreciation and amortization methods, useful lives and residual values are reviewed at each reporting date.

1.5 Revenue Recognition:

Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is reasonably certain, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods and the amount of revenue can be measured reliably and stated net of Goods & Services Tax, Sales Tax, VAT, trade discounts and rebates.

Sale of Goods

Revenue from Operations includes sale of goods and is recognised in the statement of profit and loss account when the significant risk and reward of ownership have been transferred to the buyer. The Company collects Goods and Services Tax on behalf of the government and, therefore, these are not economic benefits flowing to the Company. Hence, they are excluded from revenue.

Interest income

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "Other Income" in the Statement of Profit and Loss.

Other Income

Other income is recognized on accrual basis.

1.6 Taxes on Income:

Tax expense for the period comprises current tax and deferred tax and is recognised as an expense or income in the Statement of Profit and Loss. Current tax is measured on the basis of taxable profit for the period in accordance with the provisions of the Income Tax Act, 1961, using tax rates and tax laws that have been enacted or substantively enacted as at the reporting date.

Deferred tax represents the tax expected to be payable or recoverable on temporary differences between the carrying amounts of assets and liabilities in the financial statements and their corresponding tax bases. Deferred tax liabilities are recognised for all taxable temporary differences, while deferred tax assets are recognised only to the extent that there is reasonable or virtual certainty, supported by convincing evidence where required, that sufficient future taxable profits will be available for their realisation. Deferred tax is measured using tax rates and laws enacted or substantively enacted at the reporting date and reflects the expected manner of recovery or settlement of the related assets and liabilities. Deferred tax assets and liabilities are offset when they relate to the same tax authority and there exists a legally enforceable right to set off, and their carrying amounts are reviewed at each reporting date.

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. The carrying amount of MAT credit entitlement is reviewed at each balance sheet date and written down to the extent that it is no longer supported by convincing evidence that normal income tax will be payable during the eligible period.

1.7 Earnings per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

Diluted earnings per share is calculated by dividing net profit attributable to equity Shareholders (after adjustment for dilutive potential equity shares) by weighted average number of Dilutive potential equity shares outstanding during the period.

1.8 Provisions/Contingencies:

A provision is recognized when there is a present obligation as a result of past event, and it is probable that an outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined (as provided/charged to the Statement of Profit and Loss) based on estimate of the amount required to settle the obligation at the Balance Sheet date and are not discounted to present value.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not have any contingent liabilities as on the date of Balance sheet except as mentioned in Restated financial statements and contingent assets are neither recognized nor disclosed in the restated financial statements.

1.9 Borrowing Cost:

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the restated statement of profit and loss in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

1.10 Inventory:

Inventories are valued at the lower of cost or net realizable value. Cost includes purchase price, duties, transport, handing costs and other costs directly attributable to the acquisition and bringing the inventories to their present location and condition.

The basis of determination of cost is as follows:

Work in Progress and Finished goods valued at lower of cost or net realizable value. Cost is determined on FIFO basis.

1.11 Foreign Currency Transactions:

Initial recognition:

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction. Measurement at the balance sheet date:

Foreign currency monetary items (other than derivative contracts) of the Company, outstanding at the balance sheet date are restated at the year-end rates. Non-monetary items of the Company are carried at historical cost.

Treatment of exchange differences:

Exchange differences arising on settlement / restatement of foreign currency monetary assets and liabilities of the Company are recognised as income or expense in the Statement of Profit and Loss.

1.12 Segment Reporting:

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Inter-segment revenue, if any, is accounted on the basis of transactions which are primarily determined based on market / fair value factors. Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments have been included under "unallocated revenue / expenses / assets / liabilities". The company operates in only one segment i.e. Trading & Manufacturing of Flexible Packaging Products in India and therefore Segment reporting is not applicable to the company.

1.13 Impairment of Assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which as the asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

The company found no indication that any asset may be impaired. Therefore, there was no need to determine impairment Loss. Other disclosure requirements as per mandatory Accounting Standard AS - 28 are not applicable in the case of the company.

1.14 Prior Period Expenditure:

The change in estimate due to error or omission in earlier period is treated as prior period items. The items in respect of which liability has arisen/crystallized in the current year, though pertaining to earlier year is not treated as prior period expenditure.

1.15 Extra Ordinary Items:

The income or expenses that arise from event or transactions which are clearly distinct from the ordinary activities of the Company and are not recurring in nature are treated as extra ordinary items. The extra ordinary items are disclosed in the statement of profit and loss as a part of net profit or loss for the period in a manner so as the impact of the same on current profit can be perceived.

1.16 Employee Benefits:

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as salary and wages payable under other current liabilities in the restated statement of assets and liabilities. Actuarial Valuation report is not applicable as per AS 15, as the company does not fall under the definition prescribed for gratuity under the applicable provisions.

1.17 Cash Flows:

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. Cash flows from operating, investing and financing activities of the Company are segregated, accordingly.

1.18 Investments:

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

DISCUSSION ON BALANCE SHEET ITEMS

The following are the explanation of financial data from our Financial Statements as Restated Balance Sheet for the eight months period ended November 30, 2025 and financial years ended on March 31, 2025, 2024 and 2023:

(Rs. In Lakhs)

Particulars	As on November 30, 2025	As on March 31, 2025	As on March 31, 2024	As on March 31, 2023
Long Term Borrowings	851.97	942.25	116.01	41.45
Short Term Borrowings	899.42	945.25	406.68	164.67
Trade Payables	385.00	376.96	389.84	319.64
Trade Receivables	3,083.51	3,140.57	724.92	318.45
Inventories	1,269.41	1,012.46	747.04	441.58
Long Term Loans and Advances	-	-	-	-
Short Term Loans and Advances	-	-	-	-
Contingent Liabilities	850.40	850.80	693.50	14.49

DISCUSSION FOR THE PERIOD ENDED NOVEMBER 30, 2025

Long Term Borrowings

Our Long-Term Borrowings for the eight-months period ended November 30, 2025, was Rs. 851.97 lakhs comprising of Secured GECL Term loan from bank of Rs. 40.79 lakhs and Car Loan of Rs. 31.51 lakhs which was net off by current maturities of long-term borrowings of Rs. 21.64 lakhs and unsecured loan from Related parties of Rs. 801.31 lakhs.

Short Term Borrowings

Our Short-Term Borrowings for the eight-months period ended November 30, 2025, was Rs. 899.42 lakhs comprising of Cash Credit from Canara bank of Rs. 877.78 lakhs and Current Maturities of Long-term borrowings of Rs. 21.64 lakhs.

Trade Payables

Our Trade Payables for the eight-months period ended November 30, 2025, was Rs. 385.00 lakhs comprising of payables due to suppliers other than MSMEs of Rs. 385.00 lakhs.

Trade Receivables

Our Trade Receivables for the eight-months period ended November 30, 2025, were Rs. 3,083.51 lakhs. All trade receivables were undisputed and considered good, arising from sales made in the ordinary course of business. There were no secured receivables or doubtful receivables outstanding as at the reporting date, and accordingly, no provision for doubtful receivables was required.

Inventories

Our Inventories for the eight months period ended November 30, 2025, were Rs. 1,269.41 lakhs comprising of Raw Materials of Rs. 641.46, Work in Progress of Rs. 127.93 lakhs and Finished goods of Rs. 500.03 lakhs.

Contingent Liabilities

Contingent liabilities were Rs. 850.40 lakhs as on November 30, 2025. This is primarily on account of Claims against the company not acknowledged as debt - Income Tax Dues. The contingent liability does not exceed the Total Net Worth of the company as on November 30, 2025.

COMPARISON OF FINANCIAL YEAR 2024-25 WITH FINANCIAL YEAR 2023-24

Long Term Borrowings

Our Long-Term Borrowings increased by Rs. 826.25 Lakhs from Rs. 116.01 Lakhs for the financial year ended March 31, 2024 to Rs. 942.25 Lakhs for the financial year ended March 31, 2025 representing a significant increase of 712.24%, such significant increase is on account of addition of unsecured loan from related parties.

Short Term Borrowings

Our Short-Term Borrowings increased by Rs. 538.57 Lakhs from Rs. 406.68 Lakhs for the financial year ended March 31, 2024 to Rs. 945.25 Lakhs for the financial year ended March 31, 2025 representing an increase of 132.43%, this is on account of addition of cash credit facilities from bank.

Trade Payables

Our Trade Payables decreased by Rs. 12.89 Lakhs from Rs. 389.84 Lakhs for the financial year ended March 31, 2024 to Rs. 376.96 Lakhs for the financial year ended March 31, 2025 representing a decrease of 3.31%, such decrease is on account of payment made to creditors.

Trade Receivables

Our Trade Receivables increased by Rs. 2,415.65 Lakhs from Rs. 724.92 Lakhs for the financial year ended March 31, 2024 to Rs. 3,140.57 Lakhs for the financial year ended March 31, 2025 representing an increase of 333.23%, such increase is on account of increase in revenue from operations.

Inventories

Our Inventory increased by Rs. 265.42 Lakhs from Rs. 747.04 Lakhs for the financial year ended March 31, 2024 to Rs. 1,012.46 Lakhs for the financial year ended March 31, 2025 representing an increase of 35.53%, such increase is on account of increase in purchase of stock-in-trade.

Contingent Liabilities

Contingent liabilities increased by Rs. 157.30 lakhs, i.e., 22.68%, from Rs. 693.50 lakhs in Financial year 202324 to Rs. 850.80 lakhs in Financial year 2024-25. This increase is primarily on account of addition in the Claims against the company not acknowledged as debt - Income Tax Dues. The contingent liability does not exceed the Total Net Worth of the company for the Financial year 2023-24 and Financial year 2024-25.

COMPARISON OF FINANCIAL YEAR 2023-24 WITH FINANCIAL YEAR 2022-23

Long Term Borrowings

Our Long-Term Borrowings increased by Rs. 74.56 Lakhs from Rs. 41.45 Lakhs for the financial year ended March 31, 2023 to Rs. 116.01 Lakhs for the financial year ended March 31, 2024 representing a significant increase of 179.86%, such significant increase is on account of addition of GECL Term Loan and Unsecured loan from Related Parties.

Short Term Borrowings

Our Short-Term Borrowings increased by Rs. 242.01 Lakhs from Rs. 164.67 Lakhs for the financial year ended March 31, 2023 to Rs. 406.68 Lakhs for the financial year ended March 31, 2024 representing an increase of 146.97%, this is on account of addition of cash credit facilities from bank.

Trade Payables

Our Trade Payables increased by Rs. 70.20 Lakhs from Rs. 319.64 Lakhs for the financial year ended March 31, 2023 to Rs. 389.84 Lakhs for the financial year ended March 31, 2024 representing an increase of 21.96%, which is primarily on account of higher direct expenses and increased volume of vendor engagements during the year, in line with overall business growth.

Trade Receivables

Our Trade Receivables increased by Rs. 406.47 Lakhs from Rs. 318.45 Lakhs for the financial year ended March 31, 2023 to Rs. 724.92 Lakhs for the financial year ended March 31, 2024 representing an increase of 127.64%, such increase is on account of increase in revenue from operations.

Inventories

Our Inventory increased by Rs. 305.46 Lakhs from Rs. 441.58 Lakhs for the financial year ended March 31, 2023 to Rs. 747.04 Lakhs for the financial year ended March 31, 2024 representing an increase of 69.17%, such increase is on account of increase in purchase of stock-in-trade.

Contingent Liabilities

Contingent liabilities increased by Rs. 679.01 lakhs, i.e., 4686.06%, from Rs. 14.49 lakhs in Financial year 202223 to Rs. 693.50 lakhs in Financial year 2023-24. This increase is primarily on account of addition in the Claims against the company not acknowledged as debt - Income Tax Dues. The contingent liability does not exceed the Total Net Worth of the company for the Financial year 2022-23 and Financial year 2023-24.

MAJOR COMPONENTS OF OUR STATEMENT OF PROFIT AND LOSS

Total Income

Our total income comprises of revenue from operations and other income.

Revenue from Operations

Our Revenue from operations majorly comprises of revenues from Manufacturing and Trading of flexible packaging material like films, rolls and pouches along with Woven Fabric packaging material.

Other Income

Other income comprises of interest income and other miscellaneous income.

Total Expenses

Our total expenditure primarily consists of Cost of Material Consumed, Purchase of Stock in trade, Changes in inventory, Employee benefit expenses, Finance costs, Depreciation and Other Expenses.

Cost of Material Consumed

Cost of Material Consumed consists of Purchase of Raw Materials and Change in inventory of such Raw Materials.

Purchase of Stock in Trade

Purchase mainly consists purchase of flexible packaging material like films, ink, adhesives and other chemicals etc.

Employee Benefit Expenses

Our employee benefits expenses primarily comprise of Salaries and wages, Director Remuneration & Staff Welfare Expenses.

Finance costs

Our Finance cost expenses comprise of Interest Expenses & other borrowing costs.

Depreciation

Depreciation includes depreciation on property, plant and equipment.

Other Expenses

Other expenses primarily include Power and Fuel Expenses, Audit Fees, Legal and Professional Expenses, Compliance fees, Office Expenses, Travelling Expenses etc.

Provision for Tax

The provision for current taxation is computed in accordance with relevant tax regulation. Deferred tax is recognized on timing differences between the accounting and the taxable income for the year and quantified using the tax rates and laws enacted or subsequently enacted as on balance sheet date. Deferred tax assets are recognized and carried forward to the extent that there is a virtual certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized in future.

DISCUSSION ON RESULT OF OPERATION

The following discussion on results of operations should be read in conjunction with the restated audited financial statement for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 and for the Eight months ended on November 30, 2025.

(Amount in lakhs)

Particulars	For the year / period ended
	30th November 2025	% of Total Revenue	31st March 2025	% of Total Revenue	31st March 2024	% of Total Revenue	31st March 2023	% of Total Revenue
(1)Revenue
(a) Revenue from Operations	6,966.49	100.00%	13,546.07	100.00%	7,995.89	99.99%	4,685.65	99.98%
(b) Other Income	0.00	0.00%	0.12	0.00%	0.57	0.01%	0.83	0.02%
Total Revenue (1)	6,966.49	100.00%	13,546.19	100.00%	7,996.46	100.00%	4,686.48	100.00%
(2)Expenses
(a) Cost of material consumed	2,022.34	29.03%	4,785.67	35.33%	4,471.99	55.92%	3,611.33	77.06%
(b) Purchases of Stock-in-Trade	4,338.76	62.28%	7,496.88	55.34%	2,663.58	33.31%	560.85	11.97%
(c) Change in Inventories of Stock in Trade, FG and WIP	(147.54)	(2.12%)	(286.49)	(2.11%)	(93.48)	(1.17%)	274.89	5.87%
(d) Employee Benefit Expenses	53.79	0.77%	209.72	1.55%	45.83	0.57%	51.62	1.10%
(e) Other Expenses	100.80	1.45%	82.21	0.61%	53.24	0.67%	51.48	1.10%
Total Expenses(2)	6,368.15	91.41%	12,287.99	90.71%	7,141.16	89.30%	4,550.17	97.09%
(3) Profit/(Loss) before Interest, Depreciation and Tax (1-2)	598.34	8.59%	1,258.20	9.29%	855.30	10.70%	136.31	2.91%
Depreciation & Amortisation Expenses	27.53	0.40%	34.95	0.26%	19.85	0.25%	13.88	0.30%
(4) Profit/(Loss) before Interest and Tax	570.81	8.19%	1,223.25	9.03%	835.45	10.45%	122.43	2.61%
Financial Charges	57.92	0.83%	50.13	0.37%	29.97	0.37%	23.29	0.50%
(5) Profit/(Loss) before Tax	512.88	7.36%	1,173.12	8.66%	805.48	10.07%	99.14	2.12%
Tax expense				-
(a) Current Tax	130.37	1.87%	345.91	2.55%	192.84	2.41%	17.41	0.37%
(b) Deferred Tax	(1.21)	(0.02%)	(5.71)	(0.04%)	27.55	0.34%	21.14	0.45%
(c) MAT Credit	0.00	0.00%	0.00	0.00%	6.38	0.08%	(6.38)	(0.14%)
Total Tax Expenses	129.16	1.85%	340.20	2.51%	226.76	2.84%	32.17	0.69%
(6) Profit/(Loss) for the period/ year	383.72	5.51%	832.91	6.15%	578.72	7.24%	66.97	1.43%

DISCLOSURE FOR THE PERIOD ENDED ON NOVEMBER 30, 2025:

Total Income

The total income for the Eight months ended November 30, 2025 is Rs 6,966.49 lakhs.

Revenue from Operations

Revenue from operations for the Eight months ended November 30, 2025 is Rs 6,966.49 lakhs, comprising:

• Revenue from Manufacturing sales: Rs 2,621.83 lakhs

• Revenue from Trading sales: Rs 4,344.65 lakhs

The annualised revenue for the financial year 2025-26 based on revenue for the period ended November 30, 2025 comes to Rs. 10,449.74 lakhs which represents a decrease in the overall revenue from operations by 22.86%.

Other Income

Other income for the Eight months ended November 30, 2025 is Nil.

Purchase of Stock in Trade and Changes in Inventory

Purchase of stock in trade along with changes in inventory for the eight months ended November 30, 2025 amounts to Rs 4,191.22 lakhs, representing 60.16% of total revenue.

Cost of Material Consumed (COMC)

COMC for the Eight months ended November 30, 2025 is Rs 2,022.34 lakhs, which is 29.03% of total revenue.

Employee Benefit Expenses

Employee benefit expenses for the Eight months ended November 30, 2025 amount to Rs 53.79 lakhs, comprising directors remuneration, employee salaries, daily wage labour, and staff welfare expenses. This represents 0.77% of total revenue.

Depreciation & Amortisation

Depreciation and amortisation expenses for the Eight months ended November 30, 2025 is Rs 27.53 lakhs, which is 0.40% of total revenue.

Finance Costs

Finance costs for the Eight months ended November 30, 2025 are Rs 57.92 lakhs which represents 0.83% of total revenue, primarily relating to Interest on Loan/ CC Facilities, Bank Charges and other Processing Charges.

Other Expenses

Other expenses for the Eight months ended November 30, 2025 amount to Rs 100.80 lakhs, mainly consisting of Legal and Professional expenses, Office expenses, Insurance, Compliance fees, Power and Fuel Expenses and Travelling Expenses. These expenses represent 1.45% of total revenue.

Profit Before Tax (PBT)

PBT for the Eight months ended November 30, 2025 is Rs 512.88 lakhs, which is 7.36% of total revenue.

Tax Expense

Tax expense for the Eight months ended November 30, 2025 is Rs 129.16 lakhs.

Profit After Tax(PAT)

PAT for the Eight months ended November 30, 2025 is Rs 383.72 lakhs, with a net profit margin of 5.51%.

The annualised Profit after tax for the financial year 2025-26 based on Profit after tax for the period ended November 30, 2025 comes to Rs. 575.58 lakhs which represents a decrease in the overall revenue from operations by 30.89%.

REVIEW & COMPARISON OF FINANCIAL YEAR 2024-2025 (ENDED AS ON 31^st MARCH, 2025) WITH FINANCIAL YEAR 2023-2024 (ENDED AS ON 31^st MARCH, 2024).

Total Income

The total income for FY 2024-25 increased to Rs13,546.18 lakhs, a growth of 69.40% from Rs 7,996.46 lakhs in FY 2023- 24. This growth was primarily driven by a significant increase in revenue from operations.

Revenue from Operations

The Companys Revenue from operations for the Financial year 2024-25 stood at Rs 13,546.06 lakhs, marking an increase of 69.41% compared to the previous financial year 2023-24, where revenue was Rs 7,995.89 lakhs.

The sales growth can be attributed to a significant increase in the manufacturing and trading of Multilayer Adhesive Laminate Flexible Packaging Material and Polyester Poly Laminated Film. Additionally, the company expanded its product portfolio during the financial year 2024-25 by introducing the trading of Woven Fabric packaging material.

Other Income

Other income decreased by 78.95%, from Rs 0.57 lakhs in FY 2023-24 to Rs 0.12 lakhs in FY 2024-25. This decline is primarily due to a gain on sale of assets recorded in FY 2023-24, which did not recur in FY 2024-25.

Purchase of Stock in Trade and Changes in inventory

Purchase of stock in trade along with changes in inventory for the FY 2024-25 and FY 2023-24 is Rs 7,210.39 lakhs and Rs 2,570.10 lakhs respectively. This rise is 180.55% which corresponds to the growth in trading sales volume during the period.

Cost of material consumed

Cost of material consumed is increased by 7.01%, from Rs 4,471.99 lakhs in FY 2023-24 to Rs 4,785.67 lakhs in FY 2024- 25. The increase in cost of material consumed corresponds with increase in the manufacturing sales volume during the period.

Employee Benefit Expenses

Employee benefit expenses rose by 357.60%, increasing from Rs 45.83 lakhs in FY 2023-24 to Rs 209.72 lakhs in FY 2024-25. Employee benefit expenses mainly comprise of salaries and wages, staff welfare expenses, and directors remuneration. These expenses increased during the period due to an expansion in the labour force undertaken to meet rising sales demand.

Depreciation & Amortisation

Depreciation and amortization expenses for FY 2024-25 was Rs 34.95 Lakhs as against Rs 19.85 Lakhs for FY 202324 showing an increment by 76.07%. This was due to increase in the fixed assets of the company.

Finance Costs

Finance expenses stood at Rs 50.13 Lakhs in FY 2024-25 compared to Rs 29.97 Lakhs in FY 2023-24, reflecting a significant increase of 67.27%. The rise in finance cost is primarily attributable to higher interest on Cash Credit (CC) facilities, Guaranteed Emergency Credit Line (GECL) loan and Car loan, along with associated processing and bank charges.

Other Expenses

Other expenses increased significantly by 54.41%, rising from Rs 53.24 lakhs in FY 2023-24 to Rs82.21 lakhs in FY 2024-25. This growth was primarily driven by higher Legal and Professional Expenses, Audit fees, Power and Fuel Expenses and CSR Expenditure.

Profit Before Tax (PBT)

The profit before tax has increased from Rs 805.48 lakhs in FY 2023-2024 to Rs 1173.11 lakhs in FY 2024-2025. There was an increment of 45.64% due to a significant jump in the revenue from operations.

Tax Expense

Tax expense rose by 50.03%, from Rs226.76 lakhs in FY 2023-24 to Rs340.20 lakhs in FY 2024-25. The increase reflects the higher taxable profit for the year.

Profit After Tax(PAT)

PAT increased by 43.92%, growing from Rs832.91 lakhs in FY 2023-24 to Rs578.72 lakhs in FY 2024-25. This growth was driven by the combined impact of increased revenue and operational efficiency.

This performance reflects the Companys strategic initiatives and operational enhancements during FY 202425.

REVIEW & COMPARISON OF FINANCIAL YEAR 2023-2024 (ENDED AS ON 31^st MARCH, 2024) WITH FINANCIAL YEAR 2022-2023 (ENDED AS ON 31^st MARCH, 2023).

Total Income

The total income for FY 2023-24 increased to Rs7,996.46 lakhs, a growth of 70.63% from Rs4,686.48 lakhs in FY 2022- 23. This growth was primarily driven by a significant increase in revenue from operations.

Revenue from Operations

Revenue from operations surged by 70.65%, rising from Rs4,685.65 lakhs in FY 2022-23 to Rs7,995.89 lakhs in FY 2023- 24. The increase in sales is primarily attributable to higher production of multilayer adhesive laminate flexible packaging materials, including pouches, along with improved performance in the companys trading segment compared to the previous financial year.

Other Income

Other income has reduced by 31.33% from Rs 0.83 lakhs in FY 2022-2023 to Rs 0.57 lakhs in FY 2023-24. Our company has received discount in FY 2022-23 which did not recur in FY 2023-24.

Purchase of Stock in Trade and Changes in inventory

Purchase of stock in trade along with changes in inventory in FY 2023-24 is Rs 2,570.10 lakhs and in FY 2022-23 is Rs 835.74 lakhs. This rise is 207.52% corresponds to the growth in sales volume during the period.

Cost of material consumed

Cost of Material Consumed is increased by 23.83%, from Rs 3,611.33 lakhs in FY 2022-23 to Rs 4,471.99 lakhs in FY 2023-24. The increase in cost of material consumed corresponds with increase in the sales volume during the period.

Employee Benefit Expenses

Employee benefit expenses declined to Rs 45.83 lakhs in FY 2023-24 from Rs 51.62 lakhs in FY 2022-23, representing a reduction of 11.22%. This decrease is primarily due to lower spending on staff welfare expenses and employee provident fund contributions, driven by fewer appointments compared to the previous financial year.

Depreciation & Amortisation

Depreciation and amortization expense for FY 2023-24 was Rs 19.85 Lakhs as against Rs 13.88 Lakhs for FY 202223 showing an increment by 43.01%. This was due to the purchase of fixed assets during the year.

Finance Costs

Financial charges increased to Rs 29.97 Lakhs in FY 2023-24 compared to Rs 23.29 Lakhs in FY 2022-23, reflecting an increase of just 28.68%. The rise is mainly due to higher interest on Cash Credit facilities and loan processing charges.

Other Expenses

Other expenses increased by 3.42%, rising from Rs 51.48 lakhs in FY 2022-23 to Rs53.24 lakhs in FY 2023-24. This growth was primarily driven by higher Power and fuel Expenses, Repair and Maintenance of Machinery and Expenses Written off.

Profit Before Tax (PBT)

Profit before tax saw a significant increase from Rs 99.14 lakhs in FY 2022-2023 to Rs 805.48 lakhs in FY 20232024, marking a growth of 712.47%, primarily driven by a substantial rise in revenue from operations.

Tax Expense

Tax expense rose by 604.90%, from Rs 32.17 lakhs in FY 2022-23 to Rs 226.76 lakhs in FY 2023-24. The increase reflects the higher taxable profit for the year.

Profit After Tax(PAT)

PAT increased significantly by 764.14%, growing from Rs66.97 lakhs in FY 2022-23 to Rs578.72 lakhs in FY 202324. This growth was driven by the combined impact of increased revenue, controlled costs, and operational efficiency.

This performance reflects the Companys strategic initiatives and operational enhancements during FY 202324.

SUMMARY OF CASH FLOWS

The table below summaries our cash flows from our Restated Standalone Financial Information for the period ended November 30, 2025, for the financial years ended March 31, 2025, March 31, 2024 & March 31, 2023:

Particulars	For the Financial Year/ period ended
	30-11-2025	31-03-2025	31-03-2024	31-03-2023
Net Cash flow from/ (used in) Operating Activities	193.98	(1,244.03)	(49.02)	48.03
Net Cash used in Investing Activities	-	(70.43)	(244.53)	(77.62)
Net Cash flow from/ (used in) Financing Activities	(194.03)	1,314.69	286.60	42.55
Net Increase/ (decrease) in cash/ cash equivalents	(0.05)	0.23	(6.95)	12.96
Cash and Cash equivalents at the beginning of the year	8.16	7.93	14.89	1.93
Cash and Cash equivalents at the end of the year	8.10	8.16	7.93	14.89

Cash Flows from Operating Activities

For the eight months ended November 30, 2025

Our net cash flow from operating activities was Rs. 193.98 lakhs for the eight-months period ended November 30, 2025. Our operating profit before working capital changes was Rs. 598.33 Lakhs for the eight-months period ended November 30, 2025, which was primarily adjusted against Increase in Inventories by Rs. 256.96 Lakhs, Decrease in Trade Receivables by Rs. 57.06 Lakhs, Increase in Other Current assets by Rs. 315.95 Lakhs, Increase in Trade Payables by Rs. 8.04 Lakhs and Increase in Other Current liabilities by Rs. 107.33 Lakhs which was further decreased by Income Tax of Rs. 3.88 Lakhs.

Financial Year 2024-2025

Our net cash used in operating activities was Rs. 1,244.03 Lakhs for the financial year ended March 31, 2025. Our operating profit before working capital changes was Rs. 1,258.07 Lakhs for the Financial year 2024-25, which was primarily adjusted against Increase in Inventories by Rs. 265.42 Lakhs, Increase in Trade Receivables by Rs. 2,415.65 Lakhs, Decrease in Other Current assets by Rs. 300.88 Lakhs, Decrease in Trade payables by Rs. 12.89 Lakhs and Increase in Other Current liabilities by Rs. 77.02 Lakhs which was further decreased by Income Tax of Rs. 32.00 Lakhs.

Financial Year 2023-2024

Our net cash used in operating activities was Rs. 49.02 Lakhs for the financial year ended March 31, 2024. Our operating profit before working capital changes was Rs. 854.73 Lakhs for the Financial year 2023-24, which was primarily adjusted against increase in Inventories by Rs. 305.46 Lakhs, increase in Trade Receivables by Rs. 406.47 Lakhs, Increase in Other current assets by Rs. 309.66 Lakhs, Increase in Trade payables by Rs. 70.20 Lakhs and Increase in Other Current liabilities by Rs. 77.02 Lakhs which was further decreased by Income Tax of Rs. 20.75 Lakhs.

Financial Year 2022-2023

Our net cash flow from operating activities was Rs. 48.03 lakhs for the financial year ended March 31, 2023. Our operating profit before working capital changes was Rs. 136.32 Lakhs for the Financial year 2022-23, which was primarily adjusted against Decrease in Inventories by Rs. 187.47 Lakhs, Increase in Trade Receivables by Rs. 252.69 Lakhs, Decrease in Other Current assets by Rs. 6.17 Lakhs, Decrease in Trade payables by Rs. 26.14 Lakhs and Increase in Other current liabilities by Rs. 16.04 Lakhs which was further decreased by Income Tax of Rs. 19.14 Lakhs.

Cash Flows from Investing Activities

For the eight months ended November 30, 2025

For the eight months ended November 30, 2025 the net cash flow from investing activities was Nil.

Financial Year 2024-2025

For the financial year ended March 31, 2025, the net cash used in investing activities was (Rs. 70.43 lakhs). This was due to Purchase of fixed assets during the year amounting to Rs. 70.55 lakhs and Interest Income amounting to Rs. 0.12 Lakhs.

Financial Year 2023-2024

For the financial year ended March 31, 2024, the net cash used in investing activities was (Rs. 244.53 lakhs). This was due to Purchase of fixed assets during the year amounting to Rs. 245.10 lakhs, Proceeds from Sale of Fixed assets amounting to Rs. 0.45 lakhs and Interest income amounting to Rs. 0.12 lakhs.

Financial Year 2022-2023

For the financial year ended March 31, 2023, the net cash used in investing activities was (Rs. 77.62 lakhs). This was due to Purchase of fixed assets during the year amounting to Rs. 77.62 lakhs.

Cash Flows from Financing Activities

For the eight months ended November 30, 2025

For the eight months ended November 30, 2025 net cash used in financing activities was Rs. 194.03 lakhs. This was mainly due to Decrease in Long-term Borrowings amounting to Rs. 90.28 lakhs, Decrease in Short-term Borrowings amounting to Rs. 45.83 lakhs and Interest Cost Paid amounting to Rs. 57.92 lakhs.

Financial Year 2024-2025

For the Financial Year 2024-25, net cashflow from financing activities was Rs. 1,314.69 Lakhs. This was mainly due to Increase in Long-term Borrowings amounting to Rs. 826.25 lakhs, Increase in Short-term Borrowings amounting to Rs. 538.57 lakhs and Interest Cost paid amounting to Rs. 50.13 lakhs.

Financial Year 2023-2024

For the Financial Year 2023-24, net cashflow from financing activities was Rs. 286.60 Lakhs. This was mainly due to Increase in Long-term Borrowings amounting to Rs. 74.56 lakhs, Increase in Short-term Borrowings amounting to Rs. 242.01 lakhs and Interest Cost paid amounting to Rs. 29.97 lakhs.

Financial Year 2022-2023

For the Financial Year 2022-23, net cashflow from financing activities was Rs. 42.55 lakhs. This was mainly due to Decrease in Long-term Borrowings amounting to Rs. 43.91 lakhs, Increase in Short-term Borrowings amounting to Rs. 109.74 lakhs and Interest Cost Paid amounting to Rs. 23.29 lakhs.

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 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.

There are no significant economic changes that may materially affect or likely to affect income from continuing operations. However, Government policies governing the sector in which we operate as well as the overall growth of the Indian economy has a significant bearing on our operations. Major changes in these factors can significantly impact 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 32 in 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. Expected Future changes in relationship between costs and revenues

Our Companys future costs and revenues will be determined by demand/supply situation, Government Policies and Taxation and Currency fluctuations.

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

Increase in revenue is primarily attributable to the introduction of trading of the new product portfolio in FY 2024-25, Woven Fabric packaging material, along with higher sales volumes from the manufacturing and trading of existing products.

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

During the financial year 2024-25, the Company commenced trading in various types of films, Woven Fabric packaging material, which had not been previously announced publicly.

7. Seasonality of business

The business of our company is not seasonal, hence there is no impact of seasonality on our turnover and operations.

8. Competitive conditions

Competitive conditions are as described under the Chapters "Industry Overview" and "Our Business" beginning on page 139 and 177 respectively of the Red Herring Prospectus.

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

The Percentage contribution of our Companys suppliers vis-a-vis the total purchases respectively for the period ended November 30, 2025 along with Financial years 2025, 2024 and 2023 is as follows:

Particulars	Top Suppliers as a percentage (%) of Total Purchases
	Period ended November 30, 2025	Financial year 2024-25	Financial year 2023-24	Financial year 2022-23
Top 5	98.22%	99.64%	98.73%	97.67%
Top 10	100.00%	99.81%	99.97%	99.93%

The Percentage contribution of our Companys customers vis-a-vis the total revenue from operations respectively for the period ended November 30, 2025 along with Financial years 2025, 2024 and 2023 is as follows:

Particulars	Top Customers as a percentage (%) of Revenue from Operations
	Period ended November 30, 2025	Financial year 2024-25	Financial year 2023-24	Financial year 2022-23
Top 5	93.85%	79.83%	74.80%	92.84%
Top 10	99.98%	99.25%	87.37%	96.41%

10. Details of material developments after the date of last balance sheet i.e., 30th November 2025.

Except as mentioned below and in this Red Herring Prospectus, no circumstances have arisen since the date of last financial statements until the date of filing the Red Herring Prospectus, which materially and adversely affect or are likely to affect the operations or profitability of our Company, or value of its assets, or its ability to pay its liability within next twelve months

1. Pursuant to the Board Resolution dated 10^th January 2026, the Company has approved the Restated Financial Statements, Key Performance Indicators (KPIs), and the Objects of the Issue, including the projected working capital requirements and their key assumptions, as well as the total estimated cost of establishing a manufacturing facility, covering land acquisition, construction and development of infrastructure and associated facilities, and plant and machinery.

2. Pursuant to the Board Resolution dated February 23, 2026, the Promoters were identified for the purpose of the Draft Red Herring Prospectus/Red Herring Prospectus/Prospectus.

3. The Company on February 25,2026 filed the Adjudication Application under Section 454 of Companies Act,2013 for default made under Section 92 and 129 of the companies act, 2013 by company arising from omission of details in Annual Filing Forms MGT-7A and AOC-4 for the Financial Year 2020-21

4. Our Company has approved the Draft Red Herring Prospectus vide resolution in the Board Meeting dated March 13, 2026

5. Our Company has filed appeals before the Income Tax Appellate Tribunal for the Assessment Years 2014-15, 2015-16, 2016-17, 2017-18 and 2018-19, challenging the orders passed by the Commissioner of Income Tax (Appeals). Further, Our company has filed appeal before the Commissioner of Income Tax (Appeals) challenging the order passed by the Assessing Officer, for the Assessment Year 2024-25. The matters are currently pending adjudication. For further details, pertaining to material pending outstanding litigations see "Outstanding Litigation and Material Developments" on page 266 of this Red Herring Prospectus.

6. Our Company has approved the Red Herring Prospectus vide resolution in the Board Meeting dated May 05, 2026