Safecure Services Ltd Management Discussions

You should read the following discussion of our financial condition and results of operations together with our restated financial information for period ended June 30, 2025 and the financial years ended March 31, 2025, 2024, and 2023 , all prepared in accordance with the IndAS and notes thereto and the reports thereon, included in the section titled

"Financial Information" on page 146 Unless otherwise stated, the financial information used in this section is derived from the restated financial statements of our Company.

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 set forth in the sections titled "Risk Factors" and "Forward - Looking Statements" beginning on pages 20 and 14 respectively.

These financial statements have been prepared in accordance with Ind AS and the Companies Act. Ind AS differs in certain significant respects from U.S. GAAP and IFRS. We have neither attempted to quantify the impact of IFRS or U.S. GAAP on the financial data included in this Prospectus nor do we provide a reconciliation of our financial statements to those under U.S. GAAP or IFRS. Accordingly, the degree to which the Ind AS financial statements included in this Prospectus will provide meaningful information is entirely dependent on the readers level of familiarity with the

Companies Act, Ind AS and the SEBI ICDR Regulations. Any reliance on the financial disclosure in this Prospectus, by persons not familiar with Indian Accounting Practices, should accordingly be limited.

References to the "Company", "we", "us" and "our" in this chapter refer to Safecure Services Limited, as applicable in the relevant fiscal period, unless otherwise stated.

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

OVERVIEW OF OUR BUSINESS

We are primarily engaged in providing services relating to private security, e-surveillance, facility management and also corporate interior fit outs work in India. We, through our wholly owned Subsidiary, Safesense Tech Private Limited, provide e-surveillance services such as distinctive monitored intrusion alarm system and services (i.e. central intrusion detection and prevention services) in India. We provide services of real-time monitoring specially for ATMs and Bank Branches (i.e. site monitored 24/7 in real-time by our e-surveillance professionals to raise alerts the moment they detect any criminal or suspicious or abnormal activity).

For details, please refer to "Our Business" beginning on page 102.

DISCUSSION OF RESULT OF OPERATION

As a result of the various factors discussed above that affect our income and expenditure, our results of operations may vary from period to period. The following table sets forth certain information with respect to our results of operations for the Fiscal Years 2025, 2024 and 2023 as derived from our restated financial statements:

Key Performance Indicators of our Company

(Rs. in Lakh except percentages and ratios)

Particular	As of and for the FY
	2023	2024	2023
Revenue from Operations (Rs in Lakh)	7310.15	6,283.47	4,753.94
Other Income (Rs in Lakh)	16.71	22.80	19.83
Total Income (Rs in Lakh)	7326.86	6,306.27	4,773.77
EBIDT* (Rs in Lakh)	1242.81	1,135.95	908.70
EBIDT Margin (%)	17.00%	18.08%	19.11%
Profit After Tax (PAT)* (Rs in Lakh)	604.11	577.67	399.59
PAT Margin (%)	8.26%	9.19%	8.41%
Net worth (Rs in Lakh)	2093.07	1,500.40	932.92
Total Debt (Rs in Lakh)	2054.79	1,429.96	1,151.28
Return on Equity (ROE) (%)	28.86%	38.50%	42.83%
EBIT (Rs in Lakh)*	936.97	839.63	640.75
Return on Capital Employed (ROCE) (%)	22.48%	28.34%	30.41%
EPS (Rs.)	8.58	8.21	5.68
Book Value per Share (Rs.)	29.73	21.31	13.25
Debt To Equity (or Leverage) Ratio	0.98	0.95	1.23

*Profit After Tax, EBITA and EBIT is calculated including Other Comprehensive Income # Figures are not annualized

Notes:

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

b) Other Income means the business income other than Revenue from Operations as appearing in the Restated Financial Statements.

c) Total Income refers to Revenue from Operations + Other Income.

d) EBIDT refers to earnings before interest, depreciation and taxes, gain or loss from discontinued operations and exceptional items. EBIDT is calculated as Profit before tax + Depreciation + Interest Cost

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

f) PAT is calculated as Profit before tax tax expenses + other comprehensive income net of tax.

g) PAT Margin i.e. Net Profit Ratio/Margin quantifies our efficiency in generating profits from our revenue and is calculated by dividing our net profit after taxes by our revenue from operations.

h) Net worth means the aggregate value of the paid-up share capital and reserves and surplus.

i) Total Debt is calculated as long term debt plus short term debt.

j) Return on Equity (ROE) is profit after tax for the year divided by the net worth during that period and is expressed as a percentage.

k) EBIT (Earnings Before Interest and Tax ) calculated as Profit before tax + Interest.

l) RoCE (Return on Capital Employed) is calculated as Earnings Before Interest and Tax (EBIT) (i.e., Profit before tax + Interest) divided by capital employed, which is defined as total equity (i.e. net worth) and total debt.

m) EPS (Earning per Share) is calculated as PAT divided by no. of Equity Shares

n) Book Value per Share is calculated as net worth divided by no. of Equity Shares

o) Debt to Equity or Leverage Ratio is calculated by dividing the debt by net worth.

Explanation for KPI metrics:

KPI	Explanations
Revenue from Operations	Revenue from Operations is used by our management to track the revenue profile of the business and in turn helps to assess the overall financial performance of our Company and volume of our business
Total Revenue	Total Revenue is used to tack the total revenue generated by the business including other income.
EBIDT / EBITDA	EBIDT / EBITDA provides information regarding the operational efficiency of the business
EBIDT / EBITDA Margin (%)	EBIDT / EBITDA Margin (%) is an indicator of the operational profitability and financial performance of our business
PAT	Profit After Tax provides information regarding the overall profitability of the business
PAT Margin (%)	PAT Margin (%) is an indicator of the overall profitability and financial performance of our business
RoE (%)	RoE provides how efficiently our Company generates profits from shareholders funds.
RoCE (%)	RoCE provides how efficiently our Company generates earnings from the capital employed in the business.
Debt To Equity Ratio (or Leverage Ratio)	Debt-to-equity (D/E) ratio is used to evaluate a companys financial leverage.

Our Strengths:

1. Diverse portfolio of services

2. Experience team of professionals with domain expertise and successful track record

3. Advanced Technological Integration

4. Pan India presence

5. Diverse customer base

6. Optimum combination of Human Resource pool

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our financial condition and results of operations are affected by numerous factors and uncertainties, including those discussed in the section entitled "Risk Factors" on page 20. The following are certain factors that have had, and we expect will continue to have, a significant effect on our financial condition and results of operations:

General geopolitical, domestic and other global risks;

General economic and business conditions in states in which we operate;

Economics changes in laws and regulations that apply to the industry;

Increasing competition in the industry;

Companys inability to successfully implement its future growth plans;

Our ability to retain our key clients;

Our ability to retain our key managerial persons and other employees.

SIGNIFICANT ACCOUNTING POLICIES

The accounting policies have been applied consistently to the periods presented in the Restated Financial Statements. For details of our significant accounting policies, please refer section titled "Financial information" starting on page 146.

RESULTS OF OUR OPERATIONS

As a result of the various factors discussed above that affect our income and expenditure, our results of operations may vary from period to period. The following discussion on results of operations should be read in conjunction with the Restated Financial Statements of Company for the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023:

(Amount in lakhs)

Particulars	Financial Year 2025		Financial Year 2024		Financial Year 2023
	Amount	% of Total Income	Amount	% of Total Income	Amount	% of Total Income
Revenue from Operations (Net of Taxes)	7,310.15	99.77%	6283.47	99.64%	4753.94	99.58%
Other Income	16.71	0.23%	22.80	0.36%	19.83	0.42%
Total Income	7,326.86	100.00%	6306.27	100.00%	4773.77	100.00%
Expenditure:
Consumables	2,143.56	29.26%	1805.17	28.63%	1296.97	27.17%
Employees benefits	3,459.65	47.22%	2929.46	46.45%	2225.98	46.63%
Finance costs	223.08	3.04%	173.34	2.75%	175.87	3.68%
Depreciation and	305.84	4.17%	296.33	4.70%	267.94	5.61%
Amortization expenses
Other Expenses	469.06	6.40%	444.60	7.05%	344.02	7.21%
Total Expenses	6,601.19	90.10%	5648.90	89.58%	4310.79	90.30%
Profit /(Loss) before tax	725.67	9.90%	657.38	10.42%	462.98	9.70%
Tax expense:
- Current Tax	119.09	1.63%	82.52	1.31%	60.29	1.26%
- Deferred Tax	(8.64)	0.12%	6.10	0.10%	6.16	0.13%
Short/Excess Payment of tax in Previous periods	(0.66)		-		(1.17)	-0.02%
Net Tax expenses	109.78	1.51%	88.62	1.41%	65.28	1.37%
Profit/(Loss) after tax	615.89	8.40%	568.76	9.02%	397.69	8.33%
Other Comprehensive Income:
Gain/(losses) on changes in actuarial assumptions	(15.74)	-0.16%	11.91	0.19%	2.54	0.05%
Tax on Above	3.96	0.04%	(3.00)	-0.05%	(0.64)	-0.01%
Total Comprehensive Income	604.11	9.70%	577.67	9.16%	399.59	8.37%

PRINCIPAL COMPONENTS OF OUR STATEMENT OF PROFIT AND LOSS ACCOUNT

Total Income

Our Total Income for the Fiscal 2025, Fiscal 2024 and Fiscal 2023, were amounting to 7,326.86 lakh, 6,306.27 lakh, and 4,773.77 lakh, respectively. Following is the break-up of our Total Income for the Fiscal 2025, Fiscal 2024 and Fiscal 2023.

Our revenue comprises of:

Revenue from Operations

Our revenue from operations consists of revenue from sale of the following products:

( in Lakhs)

Nature of Sale	For the period ended on
	March 31, 2025		March 31, 2024		March 31, 2023
	Sales	%	Sales	%	Sales	%
Security & Event	5,439.02	74.40	4,851.49	77.21	3,070.47	64.59
E-Surveillance and Monitoring of ATM & Bank Branches	1,368.09	18.71	958.89	15.26	1007.56	21.19
Repair & Maintenance of ATMs and Facility Management Services	153.54	2.12	210.79	3.35	303.66	6.38
Interior Fit-outs Work	208.10	2.83	77.23	1.26	272.10	5.71
Fabrication Work	141.41	1.94	1,85.07	2.97	100.15	2.13
Total	7,310.15	100	6,283.47	100	4,753.94	100

Our revenue from operations as a percentage of total income was 99.77%, 99.64%, and 99.58%, respectively for the financial year ended March 31, 2025, March 31, 2024 and March 31, 2023 respectively.

Other Income

Our other income comprises of interest & other non-operating Income, details are given below:

Particulars	Period ended
	March 31, 2025	March 31, 2024	March 31, 2023
	in lakhs	in lakhs	in lakhs
Interest income	15.41	10.91	13.00
Other non-operating income (net of expenses directly attributable to such income)	1.30	11.89	6.83
Total other income	16.71	22.80	19.83

Other income, as a percentage of total income was 0.23%, 0.36%, and 0.42%, for the year ended March 31, 2025, March 31, 2024, and March 31, 2023 respectively.

Total Expenses

Our total expenses for the year ended March 31, 2025, March 31, 2024, and March 31, 2023 primarily consist of the following:

Direct expenses

Expenses in relation to direct expenses include Power, fuel, freight, repair, consultancy and commission as a percentage of total income was 0.61%, 1.27%, and 1.58%, for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 respectively.

Consumables

Expenses in relation to consumables include Event security, Interior, Surveillance, ATM repair & maintenance and Fabrication as a percentage of total income was 29.26%, 28.63%, and 27.17%, for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 respectively.

Employee Benefit Expenses

Expenses in relation to employees benefit expenses include Salary & Wages, contribution to provident and other funds, bonus staff welfare and Gratuity Expenses. Employee benefit expenses, as a percentage of total income was 47.22%, 46.45%, and 46.63% for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 respectively.

Finance costs

Finance cost primarily consists of interest payable on borrowings availed by our Company from banks & other borrowing cost includes bank charges, commission. The Finance cost, as a percentage of total income was 3.04%, 2.75%, and 3.68%, for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 respectively.

Depreciation and Amortization Expenses

Depreciation expenses consist of depreciation on the tangible assets and lease assets of our Company. Depreciation expenses, as a percentage of total income was 4.17%, 4.70%, and 5.61%, for the year ended March 31, 2025, March 31, 2024, and March 31, 2023 respectively.

Other Expenses

Other expenses include Audit fees, Software expenses, Legal and compliance expenses, General expenses, Insurance, Rent, Electricity, General expenses, Convenience expenses, Advertisement expenses etc. Other expenses, as a percentage of total income was 5.79%, 5.78%, and 5.63%, for the year ended March 31, 2025, March 31, 2024, and March 31, 2023 respectively.

Provision for Tax

Income tax has been provided on the basis of current income tax rate on taxable income. Advance tax and TDS deducted has been set off against provisions for taxation at the time of finalization of Income tax assessment proceedings. The deferred tax assets are recognized and carried forward only to the extent that there is virtual certainty that the asset will be realized in future. Provision for tax, as a percentage of total income was 1.51%, 1.41%, and 1.37%, for the year ended March 31, 2025 March 31, 2024 and March 31, 2023 respectively.

Financial Year 2025 compared to Financial Year 2024:

(Rs. in Lakh)

Particulars	For Fiscal 2025	For Fiscal 2024	% Change
1 Revenue from Operation	7,310.15	6283.47	16.34%
2 Other Income	16.71	22.80	(26.71)%
Total Income (1+2)	7,326.86	6,306.27	16.18%
3 Expenditure
(a) Consumables	2,143.56	1805.17	18.75%
(b) Direct Expenses	44.62	80.03	(44.25)%
(c) Employee Benefit Expenses	3,459.65	2,929.46	18.10%
(d) Finance Cost	223.08	173.34	28.70%
(e) Depreciation & Amortization	305.84	296.33	3.21%
(f) Other Expense	424.44	364.57	16.42%
4 Total Expenditure 3(a) to 3(e)	6,601.19	5,648.90	16.86%
5 Profit/(Loss) Before Tax (1+2-4)	725.67	657.38	10.39%
6 Tax Expense:
(a) Current Tax	119.09	82.52	44.32%
(b) Deferred Tax	(8.64)	6.10	(241.64)%
(c) Short/Excess Payment of tax in Previous periods	(0.66)	-	-
Net Current Tax Expenses	109.78	88.62	23.89%
7 Profit/(Loss) for the Period/Year (5-6)	615.89	568.76	42.23%
8 Other Comprehensive Income:
Gain/(Losses) on changes in actuarial assumptions	(15.74)	11.91	-V
Tax on above	3.96	(3.00)	+V
9 Total Comprehensive Income	604.11	577.66	4.46%

Revenue from Operation

Revenue from operations had increased by 16.34%, from Rs. 6283.47 lakhs in Fiscal 2024 to Rs. 7310.15 lakh in Fiscal 2025. This increase in Revenue was on account of increase in demand respect to previous year, which had helped to boost our revenue from operations by Rs. 1026.68 lakhs.

Other Income

Other income had decreased by 26.71%, from Rs. 22.80 lakhs in Fiscal 2024 to Rs. 16.71 lakh in Fiscal 2025 on account of eliminate profit on lease and rental income. The other income has decreased by Rs. 6.09 lakhs in the FY 2024 corresponding to its previous year.

Consumables

Consumables expenses had increased by 18.75%, from Rs. 1805.17 lakhs in Fiscal 2024 to Rs. 2143.56 lakh in Fiscal 2025. The revenue from operation had been also increased by 16.37%. and this is direct expense relates to revenue.

Direct Expenses

Direct expenses had been decreased by 44.25%, from Rs. 80.03 lakhs in Fiscal 2024 to Rs. 44.62 lakh in Fiscal 2025 on account of decrease in consultancy charges and repair and maintenance expenses.

Employee Benefit Expenses

Employee benefit expenses had been increased by 18.10%, from Rs. 2929.46 lakhs in Fiscal 2024 to Rs. 3459.65 lakh in Fiscal 2025 on account of increase in salaries & wages due to directly related to output services. Hence direct employees benefits increased to that extant.

Finance Cost

Finance Cost had increased by 28.70%, from Rs. 173.34 lakhs in Fiscal 2024 to Rs. 223.08 lakh in Fiscal 2025 This is primarily due to increase in bank interest and increase of bank charges on newly acquired working capital loans.

Depreciation and Amortization Expenses

Depreciation had increased by 3.21%, from Rs. 296.33 lakhs in Fiscal 2024 to Rs. 305.84 lakh in Fiscal 2025 as fixed assets addition has increased during the Fiscal 2025.

Other Expenses

Other expenses had increased by 16.42%, from Rs. 364.57 lakhs in Fiscal 2024 to Rs. 424.44 lakh in Fiscal 2025 This is primarily increase due to increase in Provision for Expected credit loss, Travelling and conveyance exp., Uniform Expenses, Rent Expenses, License Expenses etc.

Tax Expenses

The Companys tax expenses had increased by 23.89%, from Rs. 88.62 lakhs in Fiscal 2024 to Rs. 109.78 lakh in Fiscal 2025. This is primarily due to increase in profit before tax from Rs. 657.37 Lakh in Fiscal 2024 to Rs. 725.67 Lakh in Fiscal 2025.

Profit after Tax

The Companys profit after tax had increased by 8.29%%, from Rs. 568.76 lakhs in Fiscal 2024 to Rs. 615.89 lakh in Fiscal 2025. This increase in Profit After Tax was on account of increase in the total revenue from operation.

Total comprehensive income

The Companys total comprehensive income had increased by 4.46% from Rs. 577.66 lakhs in the Fiscal 2024 to Rs. 604.11 lakhs in Fiscal 2025. This increase in total comprehensive income was on account of increase in the total revenue from operation.

Financial Year 2024 compared to Financial Year 2023:

(Rs. in Lakh)

Particulars	For Fiscal 2024	For Fiscal 2023	% Change
1 Revenue from Operation	6,283.47	4,753.94	32.17%
2 Other Income	22.80	19.83	14.98%
Total Income (1+2)	6,306.27	4,773.77	32.10%
3 Expenditure
(a) Consumables	1,805.17	1,296.97	39.18%
(b) Direct Expenses	80.03	75.48	6.03%
(c) Employee Benefit Expenses	2,929.46	2,225.98	31.60%
(d) Finance Cost	173.34	175.87	(1.44)%
(e) Depreciation & Amortization	296.33	267.94	10.60%
(f) Other Expense	364.57	268.54	35.76%
4 Total Expenditure 3(a) to 3(e)	5,648.90	4,310.78	31.04%
5 Profit/(Loss) Before Tax (1+2-4)	657.19	462.98	41.98%
6 Tax Expense:
(a) Current Tax	82.52	60.29	36.87%
(b) Deferred Tax	6.10	6.16	(0.97)%
( c ) Short/Excess Payment of tax in Previous periods	-	(1.17)	+V
Net Current Tax Expenses	88.62	65.28	35.75%
7 Profit/(Loss) for the Period/Year (5-6)	568.75	397.69	43.01%
8 Other Comprehensive Income:
Gain/(Losses) on changes in actuarial assumptions	11.91	2.54	368.90%
Tax on above	(3.00)	(0.64)	-V
9 Total Comprehensive Income	577.66	399.59	44.56%

Revenue from Operation

Revenue from operations had increased by 32.17%, from Rs. 4753.94 lakhs in Fiscal 2023 to Rs. 6283.47 lakh in Fiscal 2024. This increase in Revenue was on account of increase in demand respect to previous year, which had helped to boost our revenue from operations by Rs. 1529.53 lakhs.

Other Income

Other income had increased by 14.98%, from Rs. 19.83 lakh in Fiscal 2023 to Rs. 22.80 lakhs in Fiscal 2024 on account of profit on lease, income tax refund and reduction of FD interest. The other income has increased by Rs. 2.97 lakhs in the FY 2024 corresponding to its previous year.

Consumables

Consumables expenses during the FY 2024 is increased by Rs. 508.20 lakhs as compared to its previous year. This is increased by 39.18%, from Rs. 1296.97 lakh in Fiscal 2023 to Rs. 1805.17 lakhs in Fiscal 2024. The revenue from operation had been also increased by 32.17%.

Direct Expenses

Direct expenses had been increased by 6.03%, from Rs.75.48 lakhs in Fiscal 2023 to Rs. 80.03 lakhs in Fiscal 2024 on account of increase in repair and maintenance expenses which is directly related to output services.

Employee Benefit Expenses

Employee benefit expenses had been increased by 31.60%, from Rs.2225.98 lakhs in Fiscal 2023 to Rs. 2929.46 lakhs in Fiscal 2024 on account of increase in salaries & wages due to directly related to output services. Hence direct employees benefits increased to that extant.

Finance Cost

Finance Cost had decreased by -1.44% from Rs. 175.87 lakhs in Fiscal 2023 to Rs. 173.34 lakhs in Fiscal 2024. This is primarily due to decrease in bank interest and increase of bank charges.

Depreciation and Amortization Expenses

Depreciation had increased by 10.60%, from Rs. 267.94 lakhs in Fiscal 2023 to Rs. 296.33 lakhs in Fiscal 2024 as fixed assets addition has increased during the Fiscal 2024.

Other Expenses

Other expenses had increased by 35.76% from Rs. 268.54 lakh in Fiscal 2023 to Rs. 364.57 lakh in Fiscal 2024. This is primarily due to increase in interest on GST, License expense, IPO expense, Uniform expense, Electricity expense etc. by Rs. 101.21 lakhs during the FY 2023 to FY 2024.

Tax Expenses

The Companys tax expenses had increased from Rs. 65.28 lakh in the Fiscal 2023 to Rs. 88.62 lakh in Fiscal 2024. This is primarily due to increase in profit before tax from Rs. 457.99 Lakh in Fiscal 2023 to Rs. 647 Lakh in Fiscal 2024.

Profit after Tax

The Companys profit after tax had increased by 43.01% from Rs. 397.69 lakhs in the Fiscal 2023 to Rs. 568.75 lakhs in Fiscal 2024. This increase in Profit After Tax was on account of increase in the total revenue from operation.

Total comprehensive income

The Companys total comprehensive income had increased by 44.56% from Rs. 399.59 lakhs in the Fiscal 2023 to Rs. 577.6 lakhs in Fiscal 2024. This increase in total comprehensive income was on account of increase in the total revenue from operation.

Cash flows

The following table sets forth our cash flows with respect to operating activities, investing activities and financing activities for the period indicated:

( in lakh)

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Net cash flow from/ (used in) operating activities	-29.95	260.24	786.94
Net Cash flow from/ (used in) investing activities	(345.86)	(309.85)	(321.41)
Net Cash flow from/ (used in) financing activities	390.09	84.01	(462.50)
Net increase/(decrease) in cash and cash equivalents	14.28	34.40	3.03
Cash and cash equivalents at the beginning of the year	42.57	8.16	5.13
Cash and cash equivalents at the end of the year	56.84	42.57	8.16

Operating Activities

In FY 2024-25, net cash generated from operating activities was -29.95 lakhs. This comprised of the Net profit before

Tax of . 725.67 Lakhs, which was primarily adjusted by adding for depreciation and amortisation of . 305.84 Lakhs, interest and Financial Expenses of 223.08 Lakhs, Gratuity provision of 15.72 lakhs, Prepaid rent amortization of 1.88 lakhs, CSR provision of 6.46 lakhs& interest received adjusted by deducting of 16.71 lakhs, change in current & Long-term Operating Assets and current & Long Term Liabilities by deducting of . 1,206.84 Lakhs and deducting income tax paid of . 87.93 Lakhs.

In FY 2023-24 net cash generated from operating activities was 260.24 lakhs.. This comprised of the Net profit before

Tax of . 657.38 Lakhs, which was primarily adjusted by adding for depreciation and amortisation of 296.33 Lakhs, interest and Financial Expenses of 173.34 Lakhs, Gratuity provision of -1.57 lakhs, Prepaid rent amortization, CSR provision, rental income, profit on derecognisation of lease & interest received adjusted by deducting of 13.97 lakhs, change in current & Long-term Operating Assets and current & Long Term Liabilities by deducting of 771.56 Lakhs and deducting income tax paid of . 76.34 Lakhs.

In FY 2022-23 net cash generated from operating activities was 786.9472 lakhs. This comprised of the Net profit before Tax of . 462.98 Lakhs, which was primarily adjusted by adding for depreciation and amortisation of . 267.94 Lakhs, interest and Financial Expenses of 175.87 Lakhs, Gratuity provision of 5.54 lakhs, Prepaid rent amortization, CSR provision, rental income, profit on de-reorganization of lease & interest received adjusted by deducting of 16.07 lakhs, change in current & Long-term Operating Assets and current & Long Term Liabilities by deducting of . 71.57

Lakhs and deducting income tax paid of . 37.75 Lakhs.

Investing Activities

In FY 2024-25 the net cash flow from Investing activities was (345.86) lakhs this is mainly due to net purchase of assets of 383.95 lakhs and other adjustment of interest received, purchase of FD and loan given of 31.06 lakhs

In FY 2023-24 the net cash flow from Investing activities was (309.85) lakhs this is mainly due to purchase of assets of

353.31 lakhs and other adjustment of interest received, rental income, purchase of FD and loan given of 36.28 lakhs

In FY 2022-23 the net cash flow from Investing activities was (321.41) lakh this mainly due to purchases of Fixed assets of 325.92 lakh and other adjustment of interest received, rental income, purchase of FD and loan given of 0.28 lakhs

Financing Activities

In FY 2024-25, the net cash flow from financing activities was 390.09 lakhs mainly due to net increase in loans by 635.82 lakhs and payment of interest of 219.34 lakhs.

In FY 2023-24 the net cash flow from financing activities was 84.01 lakhs mainly due to increase of secured loans 278.68 lakhs. and payment of interest & rent of 194.68 lakhs.

In FY 2022-23 the net cash flow from financing activities was (462.50) lakhs mainly due to decrease of secured loans

266.71 lakhs. and payment of interest & rent of 195.77 lakhs.

PRINCIPAL COMPONENTS OF BALANCE SHEET

Financial Year 2025 compared to Financial Year 2024:

(Amount in lakhs)

Particulars	For Fiscal 2025	For Fiscal 2024	% Change
1. Long Term borrowing	612.17	318.51	92.20%
2. Short Term borrowing	1,442.62	1,111.45	29.80%
3. Trade Payable	213.62	147.68	44.65%
4. Trade Receivable	3,190.91	2,048.94	55.73%
5. Short Loans and Advances	135.95	171.23	-20.60%

Long Term borrowing

Long Term borrowing outstanding had increased by 92.20%, from Rs. 318.51 lakh in Fiscal 2024 to Rs. 612.17 lakh in Fiscal 2025 was mainly on account of new working capital loan taken by the company for the growth of business.

Short Term borrowing

Short Term borrowing outstanding had increased by 29.80%, from Rs. 1111.45 lakh in Fiscal 2024 to Rs. 1442.62 lakh in Fiscal 2025 was mainly on account of new working capital loan taken by the company for the growth of business.

Trade Payable

Trade Payable had increased by 44.65%, from Rs. 147.68 lakh in Fiscal 2024 to Rs. 213.62 lakh in Fiscal 2025 was mainly on account of deficiency in working capital.

Trade Receivable

Trade Receivable had increased by 55.73%, from Rs. 2048.94 lakh in Fiscal 2024 to Rs. 3190.91 lakh in Fiscal 2025 was mainly on account of increase in credit period in trace receivable and unbilled revenue during the year.

Short Loans and Advances

Short Loans and Advances had Decreased by 20.60%, from Rs. 171.23 lakh in Fiscal 2024 to Rs. 135.95 lakh in Fiscal 2025 was mainly on account of due to restriction imposed on the advances given to employees and vendors.

Financial Year 2024 compared to Financial Year 2023:

(Amount in lakhs)

Particulars	For Fiscal 2024	For Fiscal 2023	% Change
1. Long Term borrowing	318.51	233.36	36.49%
2. Short Term borrowing	1,111.45	917.92	21.08%
3. Trade Payable	147.68	139.26	6.05%
4. Trade Receivable	2,048.94	1,581.92	29.52%
5. Short Loans and Advances	171.23	103.95	64.72%

Long Term borrowing

Long Term borrowing outstanding had increased by 36.49%, from Rs. 233.36 lakh in Fiscal 2023 to Rs 318.51 lakh in Fiscal 2024 was mainly on account of new working capital loan taken by the company for the growth of business.

Short Term borrowing

Short Term borrowing outstanding had increased by 21.08%, from Rs. 917.92 lakh in Fiscal 2023 to Rs 1111.45 lakh in Fiscal 2024 was mainly on account of new working capital loan taken by the company for the growth of business.

Trade Payable

Trade Payable had increased by 6.05%, from Rs. 139.26 lakh in Fiscal 2023 to Rs 147.68 lakh in Fiscal 2024 was mainly on account of deficiency in working capital

Trade Receivable

Trade Receivable had increased by 29.52%, from Rs. 1581.92 lakh in Fiscal 2023 to Rs 2048.94 lakh in Fiscal 2024 was mainly on account of increase in credit period in trace receivable and unbilled revenue during the year.

Short Loans and Advances

Short Loans and Advances had increased by 64.72.%, from Rs. 103.95 lakh in Fiscal 2023 to Rs 171.23 lakh in Fiscal 2024 was mainly on account of loan provided to employees.

Revenue generated from Related Parties

(Rs. In Lakhs unless otherwise stated)

Sr. No. Particulars	March 31, 2025	March 31, 2024	March 31, 2023
A Revenue from Operations	7,310.15	6,283.47	4,753.94
B Revenue from Operations on transactions with related parties	Nil	Nil	Nil
C % of Revenue Operations generated from related parties [(B/A)*100]	-	-	-

 

Particulars	March 31, 2025	March 31, 2024	March 31, 2023
A Revenue from Operations	7,310.15	6,283.47	4,753.94
B Trade Receivable	3,190.91	2,048.94	1,581.92
C % of Revenue from Operations [(B/A)*100]	43.65	32.61	33.28%

Trade Receivable had increased by 55.73%, from Rs. 2048.94 lakh in Fiscal 2024 to Rs. 3190.91 lakh in Fiscal 2025 inspite of revenue from operations had increased by only 16.34%, from Rs. 6283.47 lakhs in Fiscal 2024 to Rs. 7310.15 lakh in Fiscal 2025 was mainly on account of increase in credit period in trace receivable and unbilled revenue during the year.

Total debt in comparison to free cash flow from business operation

(Rs. In Lakhs unless other wise stated)

Particulars	March 31, 2025	March 31, 2024	March 31, 2023
A Total Debt	2,054.79	1,429.96	1,151.28
B Free cash flow from business operation	(29.95)	260.24	786.94

Total debt outstanding was 2,054.79 in Fiscal 2025 but Net cash flow from operation was Rs. (29.95) lakhs in fiscal 2025. It was mainly on account of increase credit period for trade receivables.

OTHER INFORMATION

Quantitative and Qualitative Disclosures about Market Risk

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. 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. Further, we also have fixed deposits and any change in interest rate results change in our interest income.

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 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 are no material frauds committed against our Company in the last three financials year.

Related Party Transactions

We enter into various transactions with related parties in the ordinary course of business. For further information relating to our related party transactions see section "Financial Information Related Party Transactions" starting on page 146.

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 impact of Covid -19 pandemic in past on our industry, there have been no events or transactions to our knowledge which may be described as "unusual" or "infrequent".

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

Domestic and international government policies governing the sector in which we operate as well as the overall growth of the Indian and global economies has a significant bearing on our operations. Major changes in these factors can significantly impact income from continuing operations. There are no significant economic changes that materially affected our Companys operations or are likely to affect income except as mentioned in the section titled

" Risk Factors" starting on page 20.

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.

Other than as described in the section titled "Risk Factors" starting on page 20 and this Chapter, to our best of knowledge there are no known trends or uncertainties that have or are expected to have a material adverse impact on our income from continuing operations.

4. Future changes in relationship between costs and revenues

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

Other than as described in the sections "Risk Factors", "Our Business" starting on page 20 and 102, respectively and this Chapter, to our best of 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 Company operates only in single business segment i.e. Supply of Manpower Services, hence, we have only one reportable segment in context of Ind AS 108 on Segment Reporting issued by ICAI.

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

The Company has not introduced any new product or services or business segment and does not expect to announce in the near future any new products/ services or business segment.

7. Seasonality of business

Our business is not subject to seasonality. For further information, see "Industry Overview" and "Our Business" starting on pages 92 and 102, respectively.

8. Dependence on single or few customers

For Fiscal 2025, Fiscal 2024 and Fiscal 2023, our top five customers accounted for about 46.00%, 47.71%, and 60.56%, respectively and our largest customer accounted for 15.50%, 16.08%, and 15.04%, respectively of our Revenue from Operations.

For Fiscal 2025, Fiscal 2024 and Fiscal 2023, our top five creditor accounted for about 1.10%, 1.28%, and 1.28%, respectively and our largest creditor accounted for 0.26%, 0.60%, and 0.35%, respectively of our Revenue from Operations.

For further information, see "Risk Factors" on starting page 20.

9. Competitive conditions

We expect competition in our business from existing and potential competitors to intensify. We face competition from both organised and unorganised players in the market. We believe our expertise and quality service offerings with experience of our management, will be key to overcome competition posed by such players. We believe that the principal factors affecting competition in our business include client relationships, reputation, quality services, fulfilling client specific requirements, the quality and pricing of our services.

Further, competitive conditions are as described under the Chapters "Industry Overview" and "Our Business" starting on pages 92 and 102 respectively.

Material Developments subsequent to March 31, 2025

There are no circumstances have arisen since the financial year ended March 31, 2025 being the date of the last financial statements as disclosed in this Prospectus until the date of filing this Prospectus, which materially or adversely affect or are likely to affect, our operations or profitability, or the value of our assets or our ability to pay our material liabilities within the next twelve months.