Sawaliya Food Products Ltd Management Discussions

The following discussion is intended to convey managements perspective on our financial condition and results of operations for the financial year ended on March 31, 2025, March 31, 2024, and March 31, 2023. You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in the Red Herring Prospectus. You should also read the section entitled "Risk Factors" beginning on page 29 of this Red Herring Prospectus, which discusses several factors, risks and contingencies that could affect our financial condition and results of operations. The following discussion relates to our Company and is based on our restated financial statements, which have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI Regulations. Portions of the following discussion are also based on internally prepared statistical information and on other sources. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year ("Fiscal Year") are to the twelve-month period ended March 31 of that year. In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to Sawaliya Food Products Limited (erstwhile "Sawaliya Food Products Private Limited"), our Company. Unless otherwise indicated, financial information included herein are based on our "Restated Financial Statements" for Financial Year ended on March 31, 2023, March 31, 2024 and March 31, 2025 included in this Red Herring Prospectus beginning on page 194.

BUSINESS OVERVIEW

Founded in 2014, our Company is a manufacturer and processer of dehydrated vegetables, serving leading institutional manufacturers engaged in branded packaged food industries, traders and international importers of dehydrated products. As such, we are deeply connected with the branded packaged food industry and this accounted for 66.15 % of our revenue in Financial Year 2025. Our products find wide application as raw materials in the fast moving consumer goods

("FMCG") industry, for products such as cup noodles, ready to eat noodles, pasta, soup, etc. Our main products include dehydrated carrot, dehydrated cabbage and dehydrated ring beans / beans. Over the years, we have crafted a sustainable as well as an integrated business model wherein we source our raw materials directly from farmers to ensure that we use absolutely natural ingredients in our products. Since the farmers are located in close proximity to our manufacturing unit, we have an advantage of procuring desired quantity of raw materials mainly being carrots, at cost competitive prices and low logistical costs. Since, we source our raw materials directly from the farmers, we are able to offer our products at a lower range than our competitors, thereby having a unique pricing model. Additionally, our tie-ups with farmers enable us to procure vegetables, especially carrot in our warehouse, and sell the under-utilised raw materials, at higher prices in the market and gain from the fluctuation in prices of the raw materials. Our Company has a diversified customer portfolio for its products. Our customer base is divided into three categories namely, institutional manufactures, Indian as well as foreign traders and international customers. Our customer base has been described below:

• Institutional manufacturers: The sale of our products to institutional manufacturers constitutes our business to business (B2B) model, wherein our Company processes and/or supplies dehydrated products as per the specifications of renowned FMCG companies and food processing companies as per their specifications. We generally supply dehydrated products to one of the leading FMCG companies headquartered in West Bengal, India and to a domestic institutional packaged food manufacturer.

• Traders: We also sell our products to local as well as foreign traders, who further sell our products to domestic institutional manufacturers or export our products to different geographies. Our local traders are concentrated in and around Madhya Pradesh and typically sell our products to local manufacturer of FMCG companies. Further, our foreign traders are located in United States of America and further sell our products to international manufacturers of FMCG products, operating mainly in the Asian regions.

• International customers: Our Company exports its finished products to various intermediaries in United States of America and has therefore established an indirect international presence for its products. Additionally, products which do not qualify our quality requirements, are exported to different countries for manufacturing of pet food. The sales and marking team of our Company has enabled us to create a separate distribution vertical wherein we directly sell our products to international intermediaries and therefore reducing our dependence upon our trader network. The revenue earned from the sale of our products, through institutional customers, traders and international customers during the Fiscals 2025, 2024 and 2023 have been provided below:

Particulars	Fiscal
	2025		2024		2023
	Revenue earned in (Rs. in lakhs)	% of total revenue	Revenue earned in (Rs. in lakhs)	% of total revenue	Revenue earned in (Rs. in lakhs)	% of total revenue
Institutional customers	2,261.41	66.15%	1,009.70	43.15%	1,198.07	79.40%
Traders	1,067.17	31.22%	1,100.36	47.03%	108.34	7.18%
International customers	89.84	2.63%	229.72	9.82%	202.46	13.42%
Total	3,418.42	100.00%	2,339.78	100.00%	1,508.87	100.00%

All our products are produced at our manufacturing facility, located in District Dhar, Madhya Pradesh, with a production capacity of approximately 1500 MT for all our dehydrated products, divided into two facilities. This enables us to have an effective control over the manufacturing process and to ensure consistent quality of our products. Our Company operates under the guidance of our Promoters, Raghav Somani and Priya Somani, who have a long standing experience in the food dehydration and food processing industry. During the year 2014, our Promoters incorporated our Company and in the year 2015, we established a manufacturing unit with a semi-automatic line and a small dryer, for processing and manufacturing dehydrated vegetables. In 2019, we automated the existing manufacturing unit by replacing the semi-automatic line with an automatic process line. We also installed an in-house meyer color sorter machine for improving quality of our products. In the year 2022, with the aim of expanding our manufacturing capacity, we had installed an additional vegetable processing line to increase production and set up an additional food dehydration and processing line in our manufacturing unit. We further expanded our manufacturing capacity and increased our ability to store and process raw materials and finished products, by establishing an in-house cold storage in our manufacturing unit. We wish to enhance our existing manufacturing process and increase our manufacturing capacity by utilising 646.27 lakhs from the Net Proceeds towards installing additional machinery in both of our production lines. For further details, please see

" Objects of the Offer" on page 96 of this Red Herring Prospectus.

We have a successful track record which has enabled us to develop an effective business model with stringent control over processes, including raw material procurement, manufacturing operations, inventory management and logistics management. We adhere to stringent product quality standards and closely track consumer preferences across segments from cross-section of markets. Our Company has adopted a zero-wastage policy to ensure efficient resource utilization, wherein, unutilized raw materials, such as carrots, are sold to capitalise market fluctuations, while sub-standard products are exported for pet food production to international intermediaries. The commercialisation of our waste material makes our manufacturing unit a zero wastage unit. Owing to the enhanced quality of our products, our Company has received approval from the United States Food and Drug Administration for its products. Since incorporation, it has been our Companys vision and focus to manufacture and supply superior quality products to our customers, which has enabled us to expand our business operations. We have a quality control and assurance division

("Quality Division") in our manufacturing unit which carries out the required tests on the materials received including raw materials which are used in the manufacturing process and also on the final products. Our Quality Division carries out sensory, physical or chemical and microbiological tests on the raw materials and finished products to ensure that our products are compliant with the specifications provided by our customers in case of institutions sales and are compliant with specifications of FSSAI. Our Quality Division also carries out tests on all the stages of our manufacturing processes to ensure that the quality is built through the process. In order to ensure delivery of utmost quality products to our customers, our Company on a periodic basis, engages third party laboratories to carry out quality checks on its finished products, on a sample basis. We have a strong and experienced management team with a cumulative experience of more than two decades has positioned our business well for continued growth and development. Our Promoters have played a key role in developing our business and we benefit from their significant experience in the food processing industry. We also have a qualified key management team with experience in food processing industry, including in the areas of manufacturing, product development, quality control, information technology, strategy and business development. We believe that the domain knowledge and experience of our individual Promoters and our key management team provides us with a significant competitive advantage as we seek to grow in our existing markets and enter new segments and geographies. The success of our management team is also demonstrated by our growth including our ability to develop new products as well as attract and retain our customers over a long period of time. We also believe our management team has demonstrated its ability to execute our required business plan and has the skills and experience needed to implement our strategic objectives related to our business and expansion in the future.

Our revenues from operations for the Fiscals 2025, 2024 and 2023 were 3,418.42 lakhs, 2339.78 lakhs and 1508.87 lakhs, respectively. Our operating EBITDA for the Fiscals 2025, 2024 and 2023 were 1,221.82 lakhs, 612.30 lakhs and 168.87 lakhs, respectively. Our profit after tax for Fiscals 2025, 2024 and 2023 were 694.57 lakhs, 311.96 lakhs and 59.41 lakhs, respectively. For further details, please refer to the section titled "Financial Information" on page 194 of this Red Herring Prospectus.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL YEAR:

In the opinion of the Board of Directors of our Company, there have not arisen, since the date of June 30, 2024 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.

KEY FACTORS AFFECTING THE RESULTS OF OPERATION:

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

1. General economic conditions in India, changes in laws and regulations.

2. Changes in revenue mix, including geographic mix of our revenues.

3. Changes in Fiscal, Economic or Political conditions in India.

4. Increased market fragmentation.

5. Competition with existing and new entrants

6. Seasonal variations and availability / shortage of fresh vegetables as same being the principal raw material used for manufacturing of our products

7. Dependency on few key customers

8. Technology System and Infrastructure Risks

OUR SIGNIFICANT ACCOUNTING POLICIES

For Significant accounting policies please refer Significant Accounting Policies, "Annexure IV" beginning under Chapter titled "Financial Information" beginning on page 194 of the Red Herring Prospectus.

RESULTS OF KEY OPERATIONS

The following table sets forth select financial data from our restated financial statement of profit and loss for the financial years ended March 31, 2025, 2024 and 2023 the components of which are also expressed as a percentage of total revenue for such period and financial years.

Particulars	For the year ended on
	March 31, 2025	% of Total Income	March 31, 2024	% of Total Income	March 31, 2023	% of Total Income
Revenue from operation	3,418.42	99.55%	2,339.78	98.85%	1,508.87	98.60%
Other income	15.42	0.45%	27.26	1.15%	21.38	1.40%
Total Revenue	3,433.84	100.00%	2,367.04	100.00%	1,530.26	100.00%
Cost of raw material consumed	1,951.39	56.83%	1,723.80	72.83%	1,398.95	91.42%
Purchases of stock in trade	237.53	6.92%	-	-	-	-
Changes in inventories of finished goods, work-in-progress and stock-in-trade	(449.64)	(13.09%)	(462.45)	(19.54%)	(575.57)	(37.61%)
Employee benefit expenses	171.01	4.98%	121.75	5.14%	115.05	7.52%
Finance cost	258.40	7.53%	141.13	5.96%	81.92	5.35%
Depreciation & amortization expense	46.09	1.34%	55.04	2.33%	35.94	2.35%
Other expenses	286.31	8.34%	344.38	14.55%	401.57	26.24%
Total Expenses	2,501.10	72.84%	1,923.65	81.27%	1,457.86	95.27%
Profit Before Tax	932.75	27.16%	443.39	18.73%	72.40	4.73%
Tax Expenses	238.18	6.94%	131.43	5.55%	12.99	0.85%

 

Particulars	For the year ended on
	March 31, 2025	% of Total Income	March 31, 2024	% of Total Income	March 31, 2023	% of Total Income
Profit (Loss) for the Year	694.57	20.23%	311.96	13.18%	59.41	3.88%

Review of Restated Financials

Revenue from Operations: Revenue from operations consists of sale of products through institutional customers, traders and international customers during the Fiscals 2025, 2024 and 2023 have been provided below:

Particulars	Fiscal
	2025		2024		2023
	Revenue earned in ( in lakhs)	% of total revenue	Revenue earned in ( in lakhs)	% of total revenue	Revenue earned in ( in lakhs)	% of total revenue
Institutional customers	2,261.41	66.15%	1,009.70	43.15%	1,198.07	79.40%
Traders International customers	1,067.17 89.84	31.22% 2.63%	1,100.36 229.72	47.03% 9.82%	108.34 202.46	7.18% 13.42%
Total	3,418.42	100.00%	2,339.78	100.00%	1,508.87	100.00%

Other Income: Other income includes Discount on Purchase A/c, Interest income, Export Benefit and Other Miscellaneous Income.

Total Income: Our total income comprises revenue from operations and other income.

Total Expenses: Companys total expenses consist of Cost of raw material consumed, Changes in inventories of Finished goods, Work-in-progress (WIP) and Stock-in-trade, Employee benefit expenses, Finance cost, Depreciation and amortization expense, and other expenses.

Changes in inventories of Finished goods, WIP and Stock-in-trade: Changes in inventories consists of costs attributable to an increase or decrease in inventory levels during the relevant financial period in Finished goods, WIP and Stock-in-trade.

Employee Benefits Expense: Employee benefit expense includes Salary to Staff, Salary to Workers, Directors Remuneration, Bonus, Gratuity and Employee welfare & other expenses.

Finance Cost: Finance cost includes Interest to financial institutions and Bank Commission & Charges.

Other expenses: Other expenses mainly consist of Travelling Expenses, ROC Charges, Consultancy & Legal Fees etc.

REVIEW OF OPERATION FOR THE PERIOD ENDED MARCH 31, 2025:

Revenue from Operations

The Companys revenue from operations in the financial year 2024-25 is 3,418.42 lakhs. This represents 1,078.64 lakhs or 46.10% increase compared to the previous financial years revenue from operations of 2,339.78 lakhs.

• Sale of products to Traders in the financial year 2024-25 decreased by 33.19 lakhs or 3.02% as compared to financial year 2023-24.

• Sale of products to International customers in the financial year 2024-25 decreased by 139.88 lakhs or 60.89% as compared to financial year 2023-24.

• Sale of products to Institutional customers in the financial year 2024-24 increased by 1,251.71 lakhs or 123.97% as compared to financial year 2023-24.

Other Income

Other Income in the financial year 2024-25 decreased by 11.84 lakhs or 43.43%, reaching 15.42 lakhs in comparison to the 27.26 lakhs incurred in the Financial Year 2023-24. This decrease was primarily due to no export benefit received in the current year which amounted to 6.01 lakhs in the previous year and reduction in discounts received in the current year by 73.50% or 12.28 lakhs as compared to the previous year. However, the same was partially offset by increase in miscellaneous income by 8.50 lakhs.

Cost of raw material consumed

Consumption and Manufacturing expenses for the financial year 2024-25 amounted to 1,951.39 lakhs constituting 56.83% of total income.

Purchases of stock in trade

Purchases of stock in trade amounted to 237.53 lakhs in the financial year 2024-25, which constitutes 6.92% of total income.

Changes in inventories of Finished goods, WIP and Stock-in-trade

There was an increase of 449.64 lakhs for Fiscal 2025 as compared to an increase of 462.45 lakhs for Fiscal 2024, primarily attributable to a higher inventory of Finished goods at the end of Fiscal 2025.

Employee Benefits Expenses

Employee benefit expenses in the Financial Year 2024-25 increased by 49.26 lakhs or 40.46%, reaching 171.01 lakhs in comparison to the 121.75 lakhs incurred in the Financial Year 2023-24. This rise in employee expenses primarily stemmed from increases in Director remuneration which went up by 12.80 lakhs and Salary to staff which went up by 57.43 lakhs. However, this increase was partially offset by a decrease in Salary to workers which went down by 23.81 lakhs.

Finance Costs

Finance Costs in the Financial Year 2024-25 increased by 83.10%, reaching 258.40 lakhs in comparison to the 141.13 lakhs incurred in the Financial Year 2023-24. This rise in finance costs primarily stemmed from increases in Interest to Bank, Financial institutions and related parties which went up by 117.28 lakhs.

Depreciation and amortization expenses

Depreciation and amortization expenses for the Financial Year 2024-2025, amounted to 46.09 lakhs constituting 1.34% of total income.

Other Expenses

Other expenses in the Financial Year 2024-25 decreased by 16.86%, reaching 286.31 lakhs in comparison to the 344.38 lakhs incurred in the Financial Year 2023-24. This decrease in other expenses was primarily attributed to several factors, including 28 lakhs decrease in investor meet expenses, 26.20 lakhs decrease in miscellaneous expense, and 24.13 lakhs decrease in Freight & Hamali expense.

Tax Expenses

Tax expenses increased by 106.75 lakhs or 81.22%, reaching a total of 238.18 lakhs in the financial year 2024-25, in contrast to the 131.43 lakhs in the financial year 2023-24.

Profit after Tax (PAT)

Due to the aforementioned factors, the profit experienced an upswing, primarily driven by the growth in total income and a decrease in total expenses as a percentage of total income. The Profit After Tax (PAT) for the financial year 2024-25 reached 694.57 lakhs, marking a notable increase from 311.96 lakhs in the financial year 2023-24. In the financial year 2024-25, PAT constituted 20.23% of the total revenue, in contrast to 13.18% in the fiscal year 2023-24.

Rationale for increase in Profit after Tax (PAT) compared to Revenue from Operation

The increase in Profit after Tax (PAT) compared to Revenue from operation is mainly on account of:

• The growth in number of customers. In the year ended March 31, 2025 number of customers associated with us was 91 as compared to 84 in the financial year 2024-25.

• Lower raw material prices because of bulk orders.

COMPARISON OF F.Y. 2024 WITH F.Y. 2023:

Revenue from Operations

The Companys revenue from operations in the financial year 2023-24 is 2,339.78 lakhs. This represents 830.90 lakhs or 55.07% increase compared to the previous financial years revenue from operations of 1,508.87 lakhs due to following reason:

1. Total production capacity of our Company increased in FY 23-24 to 1,500 M.T from 950 M.T in FY 22-23 which is an increase of 58%. And actual production in FY 23-24 was 1,107.5 M.T. as compared to 730.84 M. T in FY 22-23 which as an increase of 52%. This is mainly due to increase in capacity in the FY 24.

2. In FY 2023 company did a capex of establishing a cold storage which resulted in an increase in total number of production days due to increased availability of raw material. This has resulted in increased revenue.

3. We have also supplied new product washed carrot in the market for Rs 609.51 lacs in FY 23-24 which leads to increase in revenue.

Other Income

Other Income in the financial year 2023-24 increased by 5.88 lakhs or 27.50%, reaching 27.26 lakhs in comparison to the 21.38 lakhs incurred in the Financial Year 2022-23. This increase was primarily due to increase in Discount on Purchase A/c of 8.46 lakhs and decrease in Export benefit of 4.19 lakhs.

Cost of raw material consumed

Consumption and Manufacturing expenses for the financial year 2023-24 amounted to 1,723.80 lakhs constituting 72.83% of total income.

Changes in inventories of Finished goods, WIP and stock-in-trade

There was an increase of 462.45 lakhs for Fiscal 2024 as compared to an increase of 575.57 lakhs for Fiscal 2023, primarily attributable to a higher inventory of Finished goods at the end of Fiscal 2024.

Employee Benefits Expenses

Employee benefit expenses in the Financial Year 2023-24 increased by 5.82%, reaching 121.75 lakhs in comparison to the 115.05 lakhs incurred in the Financial Year 2022-23. This rise in employee expenses primarily stemmed from increases in Director remuneration which went up by 24.00 lakhs, Salary to workers which went up by 8.14 lakhs and Salary to staff which went down by 28.40 lakhs

Finance Costs

Finance Costs in the Financial Year 2023-24 increased by 72.28%, reaching 141.13 lakhs in comparison to the 81.92 lakhs incurred in the Financial Year 2022-23. This rise in finance costs primarily stemmed from increases in Interest to financial institutions which went up by 59.21 lakhs.

Depreciation and amortization expenses

Depreciation and amortization in the Financial Year 2023-24 increased by 53.15%, reaching 55.04 lakhs in comparison to the 35.94 lakhs incurred in the Financial Year 2022-23. The increase in depreciation was primarily due to addition in assets.

Other Expenses

Other expenses in the Financial Year 2023-24 decreased by 14.24%, reaching 344.38 lakhs in comparison to the 401.57 lakhs incurred in the Financial Year 2022-23. This decrease in other expenses was primarily attributed to several factors, including 85.36 lakhs decrease in Freight & Hamali expense, 26.23 lakhs decrease in Freight inwards, 23.17 lakhs decrease in cold storage expenses, 23.01 lakhs increase in cutting & cleaning expenses and 19.05 lakhs increase in carrot farming labour expenses.

Tax Expenses

Tax expenses increased by 911.61%, reaching a total of 131.43 lakhs in the financial year 2023-24, in contrast to the 12.99 lakhs in the financial year 2022-23.

Profit after Tax (PAT)

Due to the aforementioned factors, the profit experienced an upswing, primarily driven by the growth in total income and a decrease in total expenses as a percentage of total income. The Profit After Tax (PAT) for the financial year 2023-24 reached 311.96 lakhs, marking a notable increase from 59.41 lakhs in the financial year 2022-23. In the financial year 2023-24, PAT constituted 13.18% of the total revenue, in contrast to 3.88% in the fiscal year 2022-23.

Rationale for increase in Profit after Tax (PAT) compared to Revenue from Operation

The increase in Profit after Tax (PAT) compared to Revenue from operation is mainly on account of:

1. The Company have been procuring the raw material in bulk in its specific season at a very cheap price and store in our cold storage warehouse which was operational in FY 23-24.

2. In the FY 23, the Companys primary reliance was on two institutional buyers, namely ITC and Silva International (their combined sales accounted for approximately 92% of total sales in FY 23). Subsequently, the company changed its policy and began supplying to a wider range of traders and manufacturers, leading to a significant increase in the number of clients from 10 to 82.

3. The variable cost has decreased due to reasons like having own cold warehouse (as earlier we used to store the raw material at third party warehouse) which has decreased the other costs like cold storage warehouse cost, Freight inward expense and logistic costs:

	Mar-23		Mar-24
Particulars	Amt (In lacs)	% of total expense	Amt (In lacs)	% of total expense	Direct in Expenses
Cold Storage Expense	26.39	1.81%	3.22	0.17%	1.64%
Logistic Cost	151.17	10.37%	65.81	3.42%	6.95%
Freight Inward Expense	26.60	1.82%	0.37	0.02%	1.81%

Cash Flow

The table below summaries our cash flows from our Restated Financial Information for the financial years ended on 2025, 2024, and 2023:

Particulars	FY 2025	FY 2024	FY 2023
Net cash (used in)/ Generated from operating activities	(431.26)	79.26	15.48
Net cash (used in)/ Generated from investing activities	(343.20)	181.40	(560.02)
Net cash (used in)/ Generated from finance activities	697.69	(183.82)	550.05
Net increase/ (decrease) in cash and cash equivalents	(76.76)	76.84	5.52
Cash and Cash Equivalents at the beginning of the period	87.74	10.90	5.38
Cash and Cash Equivalents at the end of period	10.98	87.74	10.90

Cash Flow from/ (used in) Operating Activities

Net cash used in operating activities in the Fiscal 2025 was (431.26) lakhs and our profit before tax that period was 932.75 lakhs. The difference was primarily attributable to depreciation of 46.09 lakhs, Interest paid of 258.40 lakhs and thereafter change in working capital of (1453.92) lakhs respectively, resulting in gross cash used in operations at (203.82) lakhs. We have income tax paid of 227.44 lakhs. Net cash generated from operating activities in the Fiscal 2024 was 79.26 lakhs and our profit before tax that period was 443.39 lakhs. The difference was primarily attributable to depreciation of 55.04 lakhs, Interest paid of 141.13 lakhs and thereafter change in working capital of (422.62) lakhs respectively, resulting in gross cash generated from operations at 213.18 lakhs. We have income tax paid of 133.92 lakhs. Net cash generated from operating activities in the Fiscal 2023 was 15.48 lakhs and our profit before tax that period was 72.40 lakhs. The difference was primarily attributable to depreciation of 35.94 lakhs, Interest paid of 81.92 lakhs and thereafter change in working capital of (160.70) lakhs respectively, resulting in gross cash generated from operations at 28.07 lakhs. We have income tax paid of 12.59 lakhs.

Cash Flow from/ (used in) Investing Activities

In the Fiscal 2025, our net cash used in investing activities was (343.20) lakhs, which was primarily for capital work in progress of (171.16) lakh, Capital work in progress of (41.74) lakhs, (Increase)/Decrease in short term loans & advances of (87.39) lakhs, (Increase)/Decrease in Long term loans & advances of (42.72) lakhs and Interest income on fixed deposit of 1.81 lakhs during the said period. In the Fiscal 2024, our net cash generated from investing activities was 181.40 lakhs, which was primarily for Purchase/Sale of Property, Plant and Equipment of 90.96 lakhs, (Increase)/Decrease in short term loans & advances of 72.62 lakhs, (Increase)/Decrease in Non- current investment of 24.85 lakhs, (Increase)/Decrease in Long term loans & advances of (10.79) lakhs and Interest income on fixed deposit of 3.77 lakhs during the said period. In the Fiscal 2023, our net cash used in investing activities was (560.02) lakhs, which was primarily for Purchase/Sale of Property, Plant and Equipment of 42.56 lakhs, Capital work in progress of (398.62) lakhs, (Increase)/Decrease in short term loans & advances of (140.31) lakhs, (Increase)/Decrease in Non- current investment of (18.92) lakhs,

(Increase)/Decrease in Long term loans & advances of (46.22) lakhs and Interest income on fixed deposit of 1.49 lakhs during the said period.

Cash Flow from/ (used in) Financing Activities

In the Fiscal 2025, our net cash generated from financing activities was 697.69 lakhs. This was primarily due to Increase/(decrease) in long term borrowings of 551.07 lakhs, Increase/(Decrease) in short term borrowings of 405.03 lakhs and Interest Paid of (258.40) lakhs. In the Fiscal 2024, our net cash used in financing activities was (183.82) lakhs. This was primarily due to Increase/(Decrease) in long term borrowings of (196.54) lakhs, Increase/(Decrease) in short term borrowings of 153.85 lakhs and Interest Paid of (141.13) lakhs. In the Fiscal 2023, our net cash generated from financing activities was 550.05 lakhs. This was primarily due to Increase/(Decrease) in long term borrowings of 460.02 lakhs, Increase/(Decrease) in short term borrowings of 171.95 lakhs and Interest Paid of (81.92) lakhs.

Information required as per Item 11 (II) (C) (iv) of Part A of Schedule VI to the SEBI Regulations:

1. Unusual or infrequent events or transactions

To our knowledge there have been no unusual or infrequent events or transactions that have taken place during the last three years.

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

Our business has been subject, and we expect it to continue to be subject to significant economic changes arising from the trends identified above in ‘Factors Affecting our Results of Operations and the uncertainties described in the section entitled "Risk Factors" beginning on page 29 of this Red Herring Prospectus. To our knowledge, except as we have described in this Red Herring Prospectus, there are no known factors which we expect to bring about significant economic changes.

3. Income and Sales on account of major product/main activities

Income and sales of our Company mainly consists of sale of products.

4. Whether the company has followed any unorthodox procedure for recording sales and revenues

Our Company has not followed any unorthodox procedure for recording sales and revenues.

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

Apart from the risks as disclosed under Section titled "Risk Factors" beginning on page 29 in this Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

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

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

7. Total turnover of each major industry services in which the issuer company operated.

The Company is in the business of, the relevant industry data, as available, has been included in the chapter titled "Industry Overview" beginning on page 121 of this Red Herring Prospectus.

8. Status of any publicly announced new products or business services.

Our Company has not announced any new services or business services.

9. The extent to which business is seasonal.

Our Companys business is subject to seasonality. For further information, kindly check "Risk Factors" beginning on page 29 in this Red Herring Prospectus.

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

The % of contribution of our Companys suppliers vis-?-vis the total purchases respectively for the Fiscal 2025, 2024 and 2023 is as follows:

	Top Suppliers as a percentage (%) of total purchases
Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Top 5	62.41%	23.68 %	41.67 %
Top 10	73.07%	31.87 %	51.99 %

The % of contribution of our Companys customers vis-?-vis the total revenue from operations respectively for the Fiscal 2025, 2024 and 2023 is as follows:

	Top Customers as a percentage (%) of Revenue from operations
Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Top 5	75.80 %	59.49 %	84.24 %
Top 10	86.50 %	65.63 %	93.27 %

11. Competitive conditions.

Competitive conditions are as described under the Chapters titled "Industry Overview" and "Our Business" beginning on pages 121 and 139, respectively of this Red Herring Prospectus.