Safe Enterprises Retail Fixtures Ltd Management Discussions

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS

You should read the following discussion in conjunction with our restated financial statements attached in the chapter titled "Financial Information of the Company" beginning on page 192 of this Red Herring Prospectus. You should also read the section titled "Risk Factors" on page 32 and the section titled "Forward Looking Statements" on page 18 of this Red Herring Prospectus, which discusses a number of factors and contingencies that could affect our financial condition and results of operations. The following discussion relates to us, and, unless otherwise stated or the context requires otherwise, is based on our Restated Financial Statements.

Our financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditor dated May 23, 2025 which is included in this Red Herring Prospectus under "Financial Statements". The Restated Financial Information has been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. Our financial year ends on March 31 of each year, and all references to a particular financial year are to the twelve-month period ended March 31 of that year.

Business Overview:

OVERVIEW:

We are engaged in the business of designing, manufacturing, supplying and installation of shop fittings and retail fixtures, offering a wide range of customized in-store solutions across multiple retail segments such as fashion & apparels, electronics, departmental store etc. We are merchandising solution providers addressing challenges that retailers and brand marketers face in the rapidly evolving retail industry for display, placements, storage and safety of the products, thus, providing shop fitting solutions from conceptual design and prototyping to manufacturing and installation, tailored to meet the specific needs of our customers. We also offer the innovative shop fittings solutions including modular, electrified shop fittings that integrate seamlessly with various digital technologies such as LED lighting, digital screens, display stands etc. for retail outlets.

Our Company was originally formed as a partnership firm under the Indian Partnership Act, 1932 under the name and style of "M/s Safe Enterprises" pursuant to a deed of partnership entered between Saleem shabbir merchant, Zainab Bai Fakruddin, Fatema Hatim Merchant and Shirinbhai Asgarali at Mumbai, Maharashtra with effect from August 01, 1976. Further, "M/s Safe Enterprises" was subsequently converted from the partnership firm to a Public Limited Company under Part I of Chapter XXI of the Companies Act, 2013 in the name of "Safe Enterprises Retail Fixtures Limited" and received a certificate of incorporation, issued by the Registrar of Companies, Central Registration Centre on July 21, 2024. Our Companys Corporate Identity Number is U46493MH2024PLC429137.

Our company is certified with ISO 9001:2015 for Quality Management and ISO-10001:2018 for Quality Management and Customer Satisfaction and has well established manufacturing facilities and design capabilities to create the various different kinds of shop fittings and retail fixtures based on a combination of our standardised engineered components and customer specifications. We have 15 designs registered under the Designs Act 2000.

Design and Development is an integral part of our business enabling us to provide innovative and functionally appealing shop fitting components which are used within customised retail fixtures to create unique retail experiences. As of March 31, 2025, we have 15 experienced employees in our design and project team. Our manufacturing units are fully equipped to carry out processes such as prototyping, metal fabrication, wood working, powder coating, painting, assembling, testing, dismantling & packing etc.

Currently, we operate from three Manufacturing Units which are situated at

• Plot No. D-372, TTC MIDC Industrial Area, MIDC Kukshet Village, Sanpada, Thane - 400703, Maharashtra, India

• Plot No. D-374, MIDC, TTC Industrial Area, Kukshet Nerul, Navi Mumbai-400705, Maharashtra, India.

• D-222/19, TTC Industrial Area, Nerul, Navi Mumbai-400705, Maharashtra, India.

Over the years we have expanded our operations through Corporate customers, Experience center, Distributers and franchisees. We have one Experience Centre at Cochin, Kerela, where anyone can walk in and experience our latest technology enabled Shopfittings and retail fixture solutions, which are used to create unique retail experiences for varied store categories such as fashion & apparels, electronics, departmental store etc. spanning formats such as single brand outlets, multi brand outlets, shop in shops etc. Additionally, we have two franchisees in Navi Mumbai and Hyderabad along with two Distributers in Dubai and Kansas City.

Such experience center and franchises provide a platform to architects and interior designers who work with retailers. Architects and interior designers provide specifications as to which fixtures should be used by retail segments and they can visit such experience center and franchises along with ultimate customers to showcase the latest technology enabled Shopfittings and retail fixture solutions which cannot be displayed at factory sites. Further, Experience centres provide valuable services to retailers working on smaller scales by offering hands-on experiences and personalized support by demonstrating various designs and specifications related to retail fixture solutions.

Our range of traditional as well as modern technology enabled Shopfittings solutions are complemented by IoT based applications such as Lift and Learn, i.e. lifting a product will display the detail of the same on LED screens where the entire use and specification is powered through electrified shop fittings.

Further, we have two Subsidiaries. First is in the name of Safe Enterprises Retail Technologies Private Limited, which was incorporated on February 24, 2020. Safe Enterprises Retail Technologies Private Limited is accredited with UL Certification and offers the development and distribution of innovative shop fittings solutions such as electrified shop fittings including LED lighting, digital screens, display stands etc. The manufacturing unit of this company is situated in Pune, Maharashtra. The second subsidiary is in the name of Inscite Advisory Services LLP, which was incorporated on January 23, 2018, provides financial consultancy and advisory services. For further details, please refer to chapter titled "History And Corporate Structure" beginning on page 165 of this RHP.

Currently, we sell our products to more than 25 states & Union Territories in India and our revenue from domestic sales for the fiscal year 2025, 2024 and 2023 was Rs. 13086.82 lakhs, Rs. 9461.78 lakhs and Rs. 7219.39 Lakhs respectively which constituted 98.69%, 99.15% and 99.03% of our revenue from operations from sale of furniture and fittings for the respective period.

We also export our products to countries such as USA, UAE, Oman etc. and our revenue from exports for the fiscal year 2025, 2024 and 2023 was Rs.173.82 lakhs, Rs.81.44 lakhs and Rs. 70.23 Lakhs respectively which constituted 1.31%, 0.85% and 0.97% of our revenue from operations for the respective period.

Our Company is managed by our Promoters and Key managerial personnels i.e. Saleem Shabbir Merchant, Mikdad Saleem Merchant and Huzefa Salim Merchant. Saleem Shabbir Merchant (Chairman and Managing director of the company) who has approx. 48 years of experience in same industry, is responsible for Business Planning & Development, formulation of Business strategies and effective implementation of the same. Mikdad Saleem Merchant (Whole-time Director and CFO of the company) who has approx.

13 years of experience in same industry, is responsible for financial aspects of the company along with secretarial activities. Huzefa Salim Merchant (Whole-time Director of the company) has approx. 14 years of experience in same industry, is responsible for complete production and operational activities of the company which includes vendor management, complete business operations, marketing & Development and after sales services in the company.

We have a strong track record of revenue growth and profitability. The following table sets forth certain key performance indicators for the years indicated:

	(Rs. In Lakhs except percentages and ratios)
	FY 2024-25	FY 2023-24	FY 2022-23
Key Financial Performance	Consolidated	Consolidated	Standalone
Revenue from operations(1)	13,831.31	10,091.49	7,721.57
EBITDA(2)	5,210.65	3,425.54	1,919.07
EBITDA Margin(3)	37.67%	33.94%	24.85%
PAT(4)	3,918.54	2,308.84	1,208.90
PAT Margin(5)	28.33%	22.88 %	15.66 %
RoE(%)(6)	77.54%	105.34%	134.02%
RoCE (%)(7)	69.10%	104.94%	115.98%
Net Worth(8)	7,207.58	2,899.15	1,484.47

(1) Revenue from operation means revenue from sale of Furniture & Fittings and other operating revenues

(2) EBITDA is calculated as Profit before tax +share in profit of Associate enterprise +Depreciation + Interest Expenses - Other Income

(3) ‘EBITDA Margin is calculated as EBITDA divided by Revenue from Operations

(4 PAT is calculated as Profit before tax Tax Expenses+ share in profit of Associate enterprise

(5) ‘PAT Margin is calculated as PAT for the year divided by revenue from operations.

(6) Return on Equity is ratio of Profit after Tax and Average Shareholder Equity

(7) Return on Capital Employed is calculated as EBIT divided by capital employed, which is defined as Total Equity plus total borrowing plus deferred tax liabilities minus deferred tax assets

(8) Net Worth = Equity Share Capital + Reserve and Surplus (including surplus in the Statement of Profit & Loss) - Preliminary Expenses to the extent not written-off.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of Statement of Significant Accounting Policies, please refer to Restated Financial Statements beginning on page 192 of this Red Herring Prospectus.

Factors Affecting our Results of Operations

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

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

3. Inability to promptly identify and respond to changing customer preferences or evolving trends;

4. Pricing pressure due to intense competition in the market for IT Services;

5. Any change in government policies resulting in increases in taxes payable by us;

6. Our ability to retain our key managements persons and other employees;

7. Changes in laws and regulations that apply to the industries in which we operate;

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

9. Changes in political and social conditions in India or in countries that we may enter, the monetary and interest rate policies of India and other countries, inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;

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

11. Inability to successfully obtain registrations in a timely manner or at all;

12. Occurrence of Environmental Problems & Uninsured Losses;

13. Regulatory, legislative or self-regulatory developments regarding data protection;

14. Conflicts of interest with affiliated companies, the promoter group and other related parties; and

15. The performance of the financial markets in India and globally

Discussion on Result of Operations

The following discussion on results of operations should be read in conjunction with the Restated Financial Statements for the financial years ended on March 31 2025, March 31, 2024 and March 31, 2023.

					(Amount in Rs. Lakhs)
			For the financial year ended
Particulars	FY 2024- 25	% of Total Income	FY 2023-24	% of Total Income	FY 2022- 23	% of Total Income
Income
Revenue From Operation	13,831.31	98.98	10,091.49	99.55	7,721.57	99.82
Other Income	141.86	1.02	46.10	0.45	13.63	0.18
Total Income	13,973.18	100.00	10,137.59	100.00	7,735.19	100.00
Expenditure
Cost of Material Consumed	5,986.91	42.85	4,725.64	46.62	4,048.15	52.33
Changes in inventories of WIP, Packing material
	-525.42	-3.76	-60.21	-0.59	-38.73	-0.50
& finished goods.
Employee Benefit Expenses	1,572.32	11.25	917.23	9.05	774.77	10.02
Finance Cost	6.03	0.04	14.84	0.15	25.15	0.33
Depreciation and Amortisation Expenses	79.90	0.57	57.49	0.57	52.93	0.68
Other Expenses	1,853.72	13.27	1,355.94	13.38	1,017.10	13.15
Total Expenditure	8,973.46	64.22	7,010.93	69.16	5,879.37	76.01
Profit/(Loss) Before Exceptional & extraordinary items & Tax	4,999.71	35.78	3,126.67	30.84	1,855.82	23.99
Exceptional Item	-		-		-
Profit/(Loss) Before Tax	4,999.71	35.78	3,126.67	30.84	1,855.82	23.99
Share in Profit of Associate Enterprise	268.42	1.92	274.29	2.71	0.000	-
Profit/(Loss) for the period	5,268.13	37.70	3,400.95	33.55	1,855.82	23.99
Tax Expense:
Tax Expense for Current Year	1,358.66	9.72	1,098.30	10.83	652.30	8.43
Deferred Tax	-9.07	-0.06	-6.18	-0.06	-5.38	-0.07
Net Current Tax Expenses	1,349.59	9.66	1,092.12	10.77	646.92	8.36
Profit/(Loss) for the Year	3,918.54	28.04	2,308.84	22.78	1,208.90	15.63

Revenue from operations:

Revenue from operations mainly consists of income from the business of designing, manufacturing, supplying and installation of shop fittings and retail fixtures across multiple retail segments such as fashion & apparels, electronics, departmental store etc.

Other Income:

Our other income primarily comprises of Interest Income, foreign exchange income and other miscellaneous income.

Expenses:

Companys expenses consist of cost of material consumed, changes in inventory, employee benefit expenses, finance cost, depreciation and amortization expenses and other expenses

Cost of Goods Sold:

Our cost of goods sold comprises of purchase raw Material and change in inventories of raw material, WIP and finished goods.

Employee benefits expense:

Our employee benefits expense primarily comprises of Salaries, Director Remuneration, Statutory Bonus, Contribution to provident and other funds and staff welfare expenses.

Finance Costs:

Our finance cost includes Interest on loan paid to Bank and other borrowing costs.

Depreciation and Amortization Expenses:

Depreciation includes depreciation on Building, Plant & Equipments, furniture & fixtures, Vehicles, office equipments etc.

Other Expenses:

Our other expenses include Power & fuel, Labour Charges, Transportation expenses, Factory rent, Audit fess, Freight, loading & unloading charges, Professional fees, travelling expenses etc.

Financial Year ending 2025 Compared to Financial Year ending 2024 (Based on Restated Financial Statements)

Total Income:

Total income for the financial year 2024-25 stood at Rs. 13,973.18 Lakhs whereas in Financial Year 2023-24 the same stood at Rs. 10,137.59 Lakhs representing an increase of 37.84%. The main reason for the increase in total income is due to increase in revenue from sale of shop fittings and retail fixtures, which has increased from Rs. 10,091.49 Lakhs in FY 2023-24 to Rs. 13,831.31 lakhs in FY 2024-25, representing an increase of 37.06% and increase in other income, which has increased from Rs. 46.10 lakhs in FY 2023-24 to Rs. 141.86 lakhs in FY 2024-25 representing an increase of 207.69%.

Revenue from Operations

During the financial year 2024-25, the net revenue from operation of our Company increased to Rs. 13,831.31 Lakhs as against Rs. 10,091.49 Lakhs in the Financial Year 2023-24 representing an increase of 37.06%. The main reason for the increase in revenue is due to increase in sale of shop fittings and retail fixtures.

Other Income:

During the financial year 2024-25, the other income of our Company increased to Rs. 141.86 Lakhs as against Rs. 46.10 lakhs in the Financial Year 2023-24 representing an increase of 207.69%. The increase in other income was majorly due to increase in interest income.

Total Expenses

The total expense for the financial year 2024-25 increased to Rs. 8,973.46 Lakhs from Rs. 7,010.93 lakhs in the Financial Year 2023-24 representing an increase of 27.99%. Such increase was due to increase in expenses of the company like increase in employee benefits expense from Rs. 917.23 lakhs in Fiscal 2023-24 to Rs. 1,572.32 lakhs in Fiscal 2024-25 representing an increase of 71.42%, increase in Cost of material consumed to Rs. 5,461.49 lakhs in F.Y 2024-25 from Rs. 4,665.44 lakhs in F.Y 2023-24 representing an increase of 17.06% and increase in other expenses from Rs. 1,355.94 lakhs in fiscal 2023-24 to Rs. 1,853.72 lakhs in fiscal 2024-25 representing an increase of 36.71% as compared with previous year.

Cost of material consumed & change in inventories

Cost of material consumed increased to Rs. 5,461.49 lakhs in F.Y 2024-25 from Rs. 4,665.44 lakhs in F.Y 2023-24 representing an increase of 17.06%. Such increase is due to increase in purchase of raw-material and increase in inventory of raw materials, WIP & finished goods.

Employee benefits expense:

Our Company has incurred Rs. 1,572.32 Lakhs as Employee benefits expense during the financial year 2024-25 as compared to Rs. 917.23 Lakhs in the financial year 2023-24. The increase of 71.42% was mainly due to increase in remuneration to directors, salary and wages and Contribution to PF, ESIC & Other Funds.

Finance costs:

These costs were for the financial Year 2024-25 decreased to Rs. 6.03 Lakhs as against Rs. 14.84 Lakhs during the financial year 2023-24. The decrease of 59.40% was due to decrease in the interest expense of the company.

Depreciation and Amortization Expenses:

Depreciation for the financial year 2024-25 stood at Rs. 79.90 Lakhs as against Rs. 57.49 Lakhs during the financial year 2023-24. The increase in depreciation was around 38.99% in comparison to the previous year.

Other Expenses:

Our Company has incurred Rs. 1.853.72 Lakhs during the Financial Year 2024-25 on other expenses as against Rs. 1355.94 Lakhs during the financial year 2023-24. There was an increase of 36.71% mainly due to increase in expenses like Power & fuel, Labour charges, Transportation expenses, Legal & Professional fees, Security charges, travelling expenses etc.

Restated profit before tax:

Net profit before tax for the financial year 2024-25 increased to Rs. 4,999.71 Lakhs as compared to Rs. 3126.67 Lakhs in the financial year 2023-24, which was majorly due to factors as mentioned above.

Restated profit for the year:

The Company reported Restated profit after tax for the financial year 2024-25 of Rs. 3,918.54 Lakhs in comparison to Rs. 2,308.84 lakhs in the financial year 2023-24. The increase is due to increase in revenue from operations of the company from Rs. 10,091.49 Lakhs in FY 2023-24 to Rs. 13,831.31 Lakhs in FY 2024-25 representing an increase of approx. 37.06%. While there is an increase in the revenue from operations of the company by approx. 37.06% in comparison to previous year, total expenses have increased only upto 27.99% as compared with last year as with increase in production only the variable expenses (which are directly related to production) goes up but other fixed expenses remain unchanged. In FY 2024-25, total expenses accounted for 64.22% of total revenue which is upto 69.16% of total revenue in FY 2023-24. Also, company was able to utilize its existing production capacity better in FY 2024-25 in comparison to FY 2023 & FY 2024 which resulted in an increase in PAT & PAT margin in FY 2024-25.

Financial Year ending 2024 Compared to Financial Year ending 2023 (Based on Restated Financial Statements)

Total Income:

Total income for the financial year 2023-24 stood at Rs. 10,137.59 Lakhs whereas in Financial Year 2022-23 the same stood at Rs. 7,735.19 Lakhs representing an increase of 31.06%. The main reason for the increase in total income is due to increase in revenue from sale of shop fittings and retail fixtures, which has increased from Rs. 7721.57 Lakhs in FY 2022-23 to Rs. 10,091.49 lakhs in FY 2023-24, representing an increase of 30.69% and increase in other income, which has increased form Rs. 13.63 Lakhs in FY 2022-23 to Rs. 46.10 lakhs in FY 2023-24 representing an increase of 238.32%.

Revenue from Operations

During the financial year 2023-24, the net revenue from operation of our Company increased to Rs. 10,091.49 Lakhs as against Rs. 7,721.57 Lakhs in the Financial Year 2022-23 representing an increase of 30.69%. The main reason for increase in total revenue was due to increase in sale of shop fittings and retail fixtures.

Other Income:

During the financial year 2023-24, the other income of our Company increased to Rs. 46.10 Lakhs as against Rs. 13.63 lakhs in the Financial Year 2022-23 representing an increase of 238.32%. The increase in other income was majorly due to increase in interest income and increase in foreign exchange gain.

Total Expenses

The total expense for the financial year 2023-24 increased to Rs. 7,010.93 Lakhs from Rs. 5,879.37 lakhs in the Financial Year 2022-23 representing an increase of 19.25%. Such increase was due to increase in expenses of the company like increase in cost of material consumed from Rs. 4,009.42 lakhs in Fiscal 2022-23 to Rs. 4665.43 lakhs in Fiscal 2023-24 representing an increase of 16.36%, increase in employee benefit expenses which has increased from Rs. 774.77 lakhs in FY 2022-23 to Rs. 917.23 lakhs in FY 2023-24 and increase in other expenses from Rs. 1,017.10 lakhs in fiscal 2022-23 to Rs. 1,355.94 lakhs in fiscal 2023-24 representing an increase of 33.31% as compared with previous year.

Cost of material consumed & change in inventories

Cost of material consumed increased to Rs. 4,665.43 lakhs in F.Y 2023-24 from Rs. 4,009.42 lakhs in F.Y 2022-23 representing an increase of 16.36%. Such increase is due to increase in purchase of raw-material and increase in inventory of finished goods.

Employee benefits expense:

Our Company has incurred Rs. 917.23 Lakhs as Employee benefits expense during the financial year 2023-24 as compared to Rs. 774.77 Lakhs in the financial year 2022-23. The increase of 18.39% was mainly due to increase in salary & wages and Contribution to provident and other funds.

Finance costs:

These costs were for the financial Year 2023-24 decreased to Rs. 14.84 Lakhs as against Rs. 25.15 Lakhs during the financial year 2022-23. The decrease of 40.99% was due to decrease in the interest expense of the company.

Depreciation and Amortization Expenses:

Depreciation for the financial year 2023-24 stood at Rs. 57.49 Lakhs as against Rs. 52.93 Lakhs during the financial year 2022-23. The increase in depreciation was around 8.61% in comparison to the previous year.

Other Expenses:

Our Company has incurred Rs.1,355.94 Lakhs during the Financial Year 2023-24 on other expenses as against Rs.1,017.10 Lakhs during the financial year 2022-23. There was an increase of 33.31% mainly due to increase in expenses like Power & fuel, Labour charges, Transportation expenses, Factory rent, Advertisement & business promotion expenses, Professional Fees etc.

Restated profit before tax:

Net profit before tax for the financial year 2023-24 increased to Rs. 3,126.67 Lakhs as compared to Rs. 1,855.82 Lakhs in the financial year 2022-23, which was majorly due to factors as mentioned above.

Restated profit for the year:

The Company reported Restated profit after tax for the financial year 2023-24 of Rs. 2308.84 Lakhs in comparison to Rs. 1208.90 lakhs in the financial year 2022-23. The increase is due to increase in revenue from operations of the company from Rs. 7721.57 Lakhs in FY 2022-23 to Rs. 10091.49 Lakhs in FY 2023-24 representing an increase of approx. 30.69%. While there is an increase in the revenue from operations of the company by approx. 30.69% in comparison to previous year, total expenses have increased only upto 19.25% as compared with last year as with increase in production only the variable expenses (which are directly related to production) goes up but other fixed expenses remain unchanged. In FY 2023, total expenses accounted for 76.01% of total revenue which is upto 69.16% of total revenue in FY 2024. Also, company was able to utilise its existing production capacity better in FY 2023-24 in comparison to FY 2022-23 which resulted in an increase in PAT & PAT margin in FY 2023-24.

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

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

1. Unusual or infrequent events or transactions

There has not been any unusual trend on account of our business activity. Except as disclosed in this Red Herring Prospectus, there are no unusual or infrequent events or transactions in our Company.

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.

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 of the Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues

Other than as described in the sections "Risk Factors", "Our Business" and "Managements Discussion and Analysis of Financial Condition and Results of Operations" on pages 32, 131 and 240 respectively, to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.

5. Segment Reporting

Our business activity primarily falls within a single business segment at multiple geographical segments, as disclosed in "Restated Financial Statements" on page 192 of this Red Herring Prospectus.

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

Except as disclosed in the Chapter "Our Business", our Company has not announced any new product or service.

7. Seasonality of business

Our business is not subject to seasonality. For further information, see "Industry Overview" and "Our Business" on pages 120 and 131 respectively.

8. Dependence on single or few customers

Given the nature of our business operations, we believe that our business is dependent on a single or a few customers. For details please refer Risk Factor i.e. Our business is dependent on the sale of our products to certain key customers. The loss of any of these customers or loss of revenue from sales to these customers could have a material adverse effect on our business, financial condition, results of operations and cash flows.

9. Competitive conditions

Competitive conditions are as described under the Chapters "Industry Overview" and "Our Business" beginning on pages 120 and 131 respectively of this Red Herring Prospectus.

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

After the date of last Balance sheet i.e. March 31, 2025 the following material events have occurred after the last audited period.

1) Our company has approved the Audited financial statements for the year ended on March 31, 2025 in the Board meeting dated May 23, 2025.

2) Our company has approved the restated financial statements for the year ended on March 31, 2023, March 31, 2024 and March 31, 2025 in the Board meeting dated May 23, 2025.

3) Our Company has approved the Red Herring Prospectus vide resolution in the Board Meeting dated June 14, 2025.

4) Company has availed Cash credit facilities of Rs. 1000.00 Lakhs from ICICI bank and has availed Overdraft facility against FD deposits of Rs. 1350 lakhs from SVC Bank.

CAPITALISATION STATEMENT

		Rs. In Lakhs
Particulars	Consolidated Pre-Issue	Post Issue
Borrowings
Short term debt (A)	-	-
Long Term Debt (B)	24.33	-
Total debts (C)	24.33	-
Shareholders funds
Equity share capital	1715.22	*
Reserve and surplus - as restated	5492.36	*
Total shareholders funds	7207.58	*
Long term debt /shareholders funds	0.00	*
Total debt/shareholders funds	0.00	*

* The corresponding post issue figures are not determinable at this stage pending the completion of public issue and hence have not been furnished.

1. Short term Debts represent which are expected to be paid/payable within 12 months and Excludes instalments of term loans repayable in within 12 months.

2. Long term Debts represent debts other than Short term Debts as defined above.

3. The figures disclosed above are based on restated statement of Assets and Liabilities of the Company as at March 31, 2025.