Shivganga Drillers Ltd Management Discussions

OPERATION

The following discussion is intended to assist you in understanding our financial position at June 30, 2025 and our results of operations for the years ended March 31, 2025, 2024 and 2023. You should read the following discussion of our financial condition and results of operations together with our audited financial statements as of andfor the years ended March 31, 2025, 2024 and 2023, including the notes thereto and reports thereon, and the financial statement as of and for the three months period ended June 30, 2025, included elsewhere in this Draft Red Herring Prospectus.

This discussion contains forward-looking statements and reflects the current views of our Company 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 "Forward Looking Statements", "Our Business" and elsewhere in this Draft Red Herring Prospectus. Additionally, you should also read the section titled "Risk Factors" on page 36, which discusses a number of factors and contingencies that could impact our financial condition and results of operations.

The following discussion relates to our Company, unless otherwise stated, is based on Restated Financial Information which is included in this Draft Red Herring Prospectus under the section "Restated Financial Information " on page 279. Please also refer to "Definitions and Abbreviations" on page 1 for certain terms used in this section. The Restated Financial Information is based on our audited financial statements and is restated in accordance with the Companies Act, 2013, and the SEBIICDR Regulations. Our audited financial statements have been prepared in accordance with Ind-AS and other applicable provisions of the Companies Act.

Accordingly, the degree to which the financial statements in this Draft Red Herring Prospectus will provide meaningful information to a prospective investor in countries other than India depends entirely on such potential investors level of familiarity with Indian accounting practices. Our Fiscal ends on March 31 of each year, therefore, all references to a particular Fiscal are to the twelve-month period ended March 31 of that year.

Industry and market data used in this section are derived from the CareEdge Report, which was exclusively prepared for the purpose of the Issue to enable the investors to understand the industry in which we operate in connection with this Issue. Our Company commissioned and paidfor the CareEdge Report pursuant to the engagement letter dated September 02, 2025. CARE Analytics & Advisory Private Limited is not related in any manner to our Company, its Group Companies, Directors, Key Managerial Personnel, members of Senior Management or the Promoters. The data included herein includes excerpts from the CareEdge Report and may have been re-ordered by us for the purposes ofpresentation. There are no parts, data or information (which may be relevant for the proposed Issue), that has been left out or changed in any manner. Unless otherwise indicated, financial, operational, industry and other related information derived from the CareEdge Report and included herein with respect to any particular year refers to such information for the relevant calendar/Fiscal, as applicable. For more details, see "Industry and Market Data" on page 19. For risks in relation to CareEdge Report, see "Risk Factors - Industry information included in this Draft Red Herring Prospectus has been derived from an industry report prepared by CARE Advisory Research and Training Limited exclusively commissioned and paid for by us for such purpose" on page 50.

Overview

Our Company is an integrated oilfield services provider offering onshore drilling, offshore operations and management (" O&M "), equipment rental, and integrated project management solutions to upstream operators in India. We operate as a full-spectrum drilling services platform with capabilities across well planning, drilling execution, rig management, performance-based contracts, and specialized air-hammer drilling in hard-rock formations. Our business model is centered on delivering technically advanced, cost-efficient, and outcome-driven solutions that enhance operational efficiency for exploration and production (E&P) companies.

The drilling industry in India forms a critical backbone of the countrys exploration and production (" E&P ") activities. It spans across oil and gas, coal, minerals, and groundwater, though the largest contribution comes from the hydrocarbon sector. Drilling services involve exploration, appraisal, development, and production drilling operations, it primarily includes onshore and offshore drilling services. (Source: CareEdge Report)

We offer a full stack of services, comprising turnkey, performance-based drilling solutions, wherein drilling is executed on performance-based parameters such as per-meter progress, enabling clients to achieve lower costs and higher operational efficiency-as well as hire and rental-based delivery models for a wide range of essential equipment and services. Performance-Based Drilling is an emerging operating model whose core principle is to directly link drilling

contractor compensation to pre-agreed key performance indicators, rather than simply paying by time used or footage drilled. This model transforms the contractor from a mere service provider to a solution partner, offering numerous fundamental advantages. (Source: CareEdge Report)

Our service portfolio includes (i) Onshore Drilling Services, covering Drilling and Integrated Project Management Services, wherein we manage the end-to-end drilling lifecycle, including well planning, rig deployment, contractor coordination, site execution, and performance oversight, to ensure efficient and compliant project delivery, (ii) Offshore O&M Services, and (iii) Equipment Rental Services for Oil & Gas exploration with separate set of equipment.

For more details on our business, see "Our Business" on page 216.

FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Except as otherwise stated in this Draft Red Herring Prospectus and the Risk Factors given in Draft Red Herring Prospectus, the following important factors could cause actual results to differ materially from the expectations include, among others:

Size and composition of our rig fleet

The number of rigs in our fleet is an important factor that directly affects our results of operations. As the number of rigs that we operate has increased, our revenues and rig-operating expenses have increased accordingly. Our fleet as on the date of this Draft Red Herring Prospectus consists of 5 Drilling Rigs. The composition of our fleet also affects our results of operations, as market demand may vary for rigs of different types, ages and specifications. In our experience, demand for modern and higher specification rigs will, in the absence of other relevant factors, generally be greater than for older and lower specification rigs.

Global economic conditions affecting demand for Oil and Natural Gas

Our operations are substantially affected and will continue to be affected, by global macroeconomic conditions as well as emerging industry trends. Demand for our services are directly linked to developments in the oil and gas sector, including increases in the demand and increased investments in integrated Oil & Gas projects in India. While the level of activity of Oil & Gas companies tends to be the result of long-term capital planning, which is often implemented over several years, exploration, development, and drilling activity budgets are, however, strongly driven by current and anticipated oil and gas prices, which in turn drives the demand for our services.

As opposed to capital expenditure in exploration, development, and drilling activities, operating expenditures are usually more resilient to demand for Oil & Gas and price fluctuations. Operating expenditure includes spending related to supply, logistics, well intervention, maintenance and repair work on installations during the production and development phase of the field lifecycle, each of which are important in maintaining production and therefore tend to be relatively stable.

Keeping pace with the ever-increasing technical requirements of the operators

We operate in an industry which are characterized by rapid technological changes and any delay by us in adapting to and developing capabilities to cater to changing demands in the Oil & Gas industry may affect our business operations. Our success depends substantially on our ability to quickly adapt to new technologies and develop and offer new services which anticipates changing market needs. As a result of downturn on demand for Oil & Gas, the sector is now focusing on operational efficiency and cultivating new value enhancing production methods. Older equipment on which maintenance costs are high and operational output is potentially lowered are being retired and the service providers are focusing on maintaining a more up to date and technologically advanced fleet of rigs to market for upcoming exploration projects.

Further, improving operational safety goes hand-in-hand with advancing drilling and workover apparatus. Modernisation of equipment and incorporation of automatic functions and advanced control systems, has reduced physical handling of the equipment thereby lowering potential safety risks such as operator fatigue and exposure to hazardous material. Adapting to the technological advancements is key to bagging newer contracts and attaining higher operational efficiency which would directly have an impact on our profitability.

Ability to attract, recruit and retain skilled personnel

A significant number of our employees are skilled engineers and we face strong competition to attract, recruit and retain these and other skilled and professionally qualified staff. The loss of any of the members of our senior management or

other key personnel or an inability to manage the attrition levels in different employee categories may materially and adversely impact our business and results of operations.

Unexpected loss, shutdown or slowdown of operations at any of our manufacturing facilities

Our drilling sites are the backbone of our operations, playing a vital role for our continued growth and success. These sites are crucial to our business, generating a significant portion of our revenue. However, any unexpected disruptions, such as equipment failures, natural disasters, or other unforeseen events, can have a ripple effect on our entire operation.

A shutdown or slowdown at our sites can lead to delayed order fulfilment, causing frustration and disappointment among our valued customers. This, in turn, can damage our reputation and potentially lead to lost business opportunities.

To mitigate these risks, we prioritize proactive maintenance, regular facility assessments, and contingency planning. By identifying potential vulnerabilities and developing strategies to address them, we can minimize the impact of disruptions and ensure business continuity. Our goal is to maintain a seamless operation, delivering high-precision drilling to our customers while protecting our reputation and revenue streams.

Our inability to successfully implement our Expansion Project

Our inability to successfully implement the Expansion Project may have several consequences for our Company. Firstly, it could hinder our growth and limit our ability to reach new markets or serve a larger customer base. This could result in missed opportunities for revenue generation and potential loss of market share to competitors who are able to expand successfully. Additionally, the failure to implement the Expansion Project may impact our reputation and credibility in the industry. Stakeholders, including investors, partners, and customers, may question our ability to execute strategic initiatives effectively, which could lead to a loss of trust and potential negative impact on future business relationships. Furthermore, the inability to successfully implement the Expansion Project may have financial implications. If significant resources have already been invested in the project, the failure to achieve the desired outcomes could result in financial losses and a strain on our budget. This could potentially limit our ability to invest in other important initiatives or hinder our overall financial performance. It is important to address the challenges and obstacles that are preventing the successful implementation of the Expansion Project. By identifying and addressing these issues, we can mitigate the potential negative impacts and work towards finding alternative solutions or strategies to achieve our expansion goals.

SIGNIFICANT ACCOUNTING POLICIES

The Restated Financial Information of the Company comprising the Restated Statement of Assets and Liabilities for the period ending June 30, 2025 and for the year ended March 31, 2025, March 31, 2024 and March 31, 2023, the Restated Statements of Profit and Loss (including other comprehensive income), the Restated Statement of Changes in Equity, the Restated Cash Flow Statement for the period ended June 30, 2025 and for the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023 the Summary Statement of Significant Accounting Policies, and other explanatory information (collectively, the "Restated Financial Information")

The Restated Financial Information has been compiled by the management of the Company from: -

The audited Ind AS Financial Statements of the Company as at for the period ended June 30, 2025 and financial year ended March 31, 2025, March 31, 2024 and March 31, 2023 prepared in accordance with the Indian Accounting Standards (referred to as "Ind AS") as prescribed under section 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015, as amended, and other accounting principles generally accepted in India (the "Ind AS Financial Statements"), which have been approved by the Board of Directors of our Company.

For the purpose of our examination, we have relied on Auditors report issued by us dated November 12, 2025 respectively on the Financial Statements of the Company as at for the period ended June 30, 2025 and financial year ended March 31, 2025, March 31, 2024 and March 31, 2023 respectively.

The Restated Financial Information:

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

b) Do not require any adjustment for modification as there is no modification in the underlying Audit reports.

c) Have been prepared in accordance with the Act, ICDR Regulations and the Guidance Note read with SEBI Communication, as applicable

The Restated Financial Information do not reflect the effects of events that occurred subsequent to the respective dates of the reports on audited Ind AS financial statements/ audited Indian GAAP financial statements. The accounting policies have been consistently applied by the Company in preparation of the Restated Financial Information. There have been no reservations or qualifications or adverse remarks of the Statutory Auditors in the last three fiscal years and for the three-month period ended June 30, 2025. This Restated Financial Information has been prepared for the Company as a going concern basis.

Note 1 - Material Accounting Policies

A. Corporate Information

Shivganga Drillers Pvt. Ltd., is an ISO 9001, 14001 & 18001 certified company, incorporated / registered on 08th August 2005, with the Registrar of Companies Madhya Pradesh as a Private Limited Company.

Company Currently providing Drilling solutions in PAN India to the Government / Non-Government Oil and Gas Industries."

B. Basis of preparation and Statement of compliance

i. Basis of Preparation

The financial statements have been prepared in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) (Amendment) Rules, 2016 notified under section 133 of the Companies Act, 2013, (the Act) and other relevant provisions of the Act.

These are presented in INR and all values are rounded to nearest Indian Rupees in Lacs (00,000) except when otherwise indicated.

The financial statements have been prepared under the historical cost convention on an accrual basis.

ii. Use of Estimates

The preparation of financial statements in accordance with Ind AS requires use of estimates and assumptions for some items, which might have an effect on their recognition and measurement in the Balance sheet and statement of profit and loss. The actual amounts realized may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized prospectively

iii. Basis of Classification of Current and Non-current

Current - noncurrent classification:

The Company presents assets and liabilities in the Balance sheet based on current/ non-current classification.

A. An asset is classified as current when it satisfies any of the following criteria:

i) It is expected to be realized in, or is intended for sale or consumption in, the companys normal operating cycle;

ii) It is held primarily for the purpose of being traded;

iii) It is expected to be realized within twelve months after the reporting date; or

iv) It is Cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

Current assets include the current portion of non-current financial assets.

B. All assets other than current assets are classified as non-current.

C. A liability is classified as current when it satisfies any of the following criteria:

i) It is expected to be settled in the companys normal operating cycle;

ii) It is held primarily for the purpose of being traded;

iii) It is due to be settled within twelve months after the reporting date; or

iv) "The company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Current Liabilities include the current portion of non-current financial Liabilities.

D. All assets other than current Liabilities is classified as non-current.

iv. Property Plant and Equipment

Property, plant and equipment that are in the course of construction or installation for production, supply or administrative use are carried at cost, less any recognised impairment. Cost includes the purchase price or construction cost (net of eligible tax credits), and directly attributable expenditure necessary to bring the asset to the location and condition required for it to be capable of operating in the manner intended by management. Cost also includes related professional fees and, for qualifying assets, borrowing costs capitalised in accordance with the Companys accounting policy on borrowing costs.

Determination of the estimated useful lives of tangible assets and the assessment as to which components of the cost may be capitalized.

Useful lives of tangible assets are based on the life prescribed in Schedule II of the Companies Act, 2013. In cases, where the useful lives are different from that prescribed in Schedule II, they are based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support.

"Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses, if any.

The cost of an item of property, plant and equipment comprises:

a) "its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates. "

b) any directly attributable cost of bringing the asset to its location and condition necessary for it to be capable of operating in the manner intended by management.

c) the estimated costs of dismantling and removing the item and restoring the site on which it is located.

d) Borrowing costs relating to acquisition of fixed assets which takes substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use.

Income and expenses related to the incidental operations, not necessary to bring the item to the location and condition necessary for it to be capable of operating in the manner intended by management, are recognized in profit or loss.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted and depreciated for as separate items (major components) of property, plant and equipment.

Capital Work in-Progress is carried at cost, comprising direct cost, related incidental expenses and interest on borrowings to the extent attributed to them.

"Any gain or loss on disposal of an item of property, plant and equipment is recognized in the statement of profit and loss. All other repairs and maintenance are charged to profit or loss during the

reporting period in which they are incurred. "

Subsequent Expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

Deemed cost

The Company has elected to continue with the carrying value for all of its property, plant and equipment, intangible assets and investment property as recognized in the financial statements as the deemed cost at the date of transition to Ind AS, measured as per the previous GAAP:

Depreciation

Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual values over the estimated useful lives prescribed under Schedule II of the Act, using the straight-line method and is generally recognized in the statement of profit and loss.

the management estimates the useful life for Property, plant and equipment on internal assessment by an independent technical evaluation carried out by external valuers as follows: -

Tangible Assets	Life Defined	Useful life as per Schedule II
Building	60	60
Plant & Machineries	8	8
Plant & Machineries (Rig)	30	30
Office Equipments	5	5
Furniture & Fixtures	10	10
Computer	3	3
Vehicles	8	8

v. Borrowing Cost

Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of funds. Borrowing costs that are directly attributable to the acquisition or construction of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of that asset till the date it is ready for its intended use or sale. Other borrowing costs are recognized as an expense in the period in which they are incurred.

vi. Lease Liabilities and Right of use Assets

The Company assesses whether a contract contains a lease, at inception of the contract. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

(i) the contract involves use of an identified asset;

(ii) the Company obtains substantially all of the economic benefits from the use of the asset through the period of the lease and

(iii) the Company has the right to direct the use of the asset.

The Company as a lessee:

At the commencement date of a lease, the Company recognises a Right-of-Use (ROU) asset and a corresponding lease liability for all lease arrangements where it is the lessee, except for leases with a lease term of 12 months or less (shortterm leases) and leases of low-value assets. For such short-term and low-value leases, the Company recognises the lease payments as an expense on a straight-line basis over the lease term, or on another systematic basis if that is more representative of the pattern of benefit.

Certain lease contracts contain options to extend or terminate the lease. These options are included in determining the lease term, and consequently in the measurement of the ROU assets and lease liabilities, only when it is reasonably certain that the Company will exercise the option to extend the lease, or will not exercise the option to terminate the lease.

The lease liability is initially measured at present value of the future lease payments over the reasonably certain lease term. The lease payments are discounted using the interest rate implicit in the lease, if it not readily determinable, using the incremental borrowing rate. For leases with similar characteristics, the Company, on a lease-by-lease basis, applies either the incremental borrowing rate specific to the lease.

Lease liabilities are remeasured with a corresponding adjustment to the related right-of-use asset if the Company changes its assessment regarding extension or termination option.

The right-of-use assets are initially recognized at cost, which comprises the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the inception date of the lease along with any initial direct costs, restoration obligations and lease incentives received.

Subsequently, the right-of-use assets is measured at cost less any accumulated depreciation and accumulated impairment losses, if any. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use assets.

vii. Foreign Currency Transaction Initial recognition

Foreign currency transactions are recorded in Indian Rupees by applying to the foreign currency amount, the exchange rate between the Indian Rupee and the foreign currency prevailing at the date of the Transaction.

Conversion

Foreign currency monetary items are reported using the closing rate.

Current liabilities related to foreign currency transaction are being converted at the year end at the closing rates for revenue transactions & exchanges gains / losses in fluctuations of exchange rate are being dealt in the profit & loss account.

Exchange differences

Exchange differences arising on the settlement of monetary items or on reporting such monetary items at rates different from those at which they were reported in previous financial statements, are recognized as income or as expense in the year in which they arise.

viii. Inventory Valuation:

Stores, Spares and other items required for operation are treated as consumed as and when sent for drilling operations. Stocks in hand are valued at cost or net realizable value, whichever is lower. Cost in respect of Stores & Spares is determined on FIFO basis.

ix. Provisions and Contingent Liabilities and Contingent Assets

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent Assets are neither recognized nor disclosed in the financial statements. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

x. Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Guarantees given under the Joint Venture agreement by the company without charging any fee is recognized at a value which represents a fee which would have been charged by a bank for issuing a similar guarantee to the joint venture.

xi. De-recognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.

xii. Taxation

The tax expense comprises of current and deferred income tax.

Current Income Tax - The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the Statement of Financial Position date.

Deferred income tax - Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying values in the Financial Statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the Statement of Financial Position date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred Tax Assets are recognised and carried forward to the extent that there is a reasonable certainty, except arising from unabsorbed depreciation and carry forward losses, which are recognised to the extent that there is virtual certainty, that sufficient future taxable income will be available against which such deferred tax assets can be realised.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current income tax assets against current income tax liabilities and when the deferred income tax assets and liabilities relate to income tax levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net or simultaneous basis.

The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in net profit in the Statement of Comprehensive Income in the year of change.

Current and deferred tax expense for the year is recognised in the Statement of Profit and Loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

xiii. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments also include derivative contracts such as foreign currency foreign exchange forward contracts.

"Financial instruments also covers contracts to buy or sell a non-financial item that can be settled net in cash or another financial instrument, or by exchanging financial instruments, as if the contracts were financial instruments,

with the exception of contracts that were entered into and continue to be held for the purpose of the receipt or delivery of a non-financial item in accordance with the entitys expected purchase, sale or usage requirements. "

xiv. Financial assets

Classification

The Company shall classify financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss on the basis of its business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.

Initial recognition and measurement

At initial recognition, the company measures a financial asset at its fair value. If financial asset not measured at fair value, the transaction costs that are directly attributable to the acquisition of the financial asset will be added to cost of financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Debt instruments at amortized cost

A debt instrument is measured at the amortized cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding. Alter initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the profit or loss. The losses arising from impairment are recognized in the profit or loss. This category generally applies to trade and other receivables.

Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the Company decides to classify the same either as at FVOCI or FVTPL. The Company makes such election on an instrument-by- instrument basis. The classification is made on initial recognition and is irrevocable. If the Company decides to classify an equity instrument as FVOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to profit and loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity. Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.

De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily de-recognized (i.e. removed from the Companys balance sheet) when:

"The rights to receive cash flows from the asset have expired, or The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a pass-through arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of the Companys continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained."

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

Financial assets that are debt instruments, and are measured at amortized cost e.g., loans, debt securities, deposits, and bank balance. b) Trade receivables - The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. Trade receivables are tested for impairment on a specific basis after considering the sanctioned credit limits, security like letters of credit, security deposit collected etc. and expectations about future cash flows.

xv. Financial Liabilities

The Companys financial liabilities comprise borrowings, trade payables and other liabilities. These are initially measured at fair value, net of transaction costs, and are subsequently measured at amortised cost using the effective interest method.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

Changes to the carrying amount of a financial liability as a result of renegotiation or modification of terms that do not result in derecognition of the financial liability, is recognised in the Statement of Profit and Loss.

xvi. Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of twelve months or less, which are subject to an insignificant risk of changes in value.

xvii. Measurement of Fair Values

The Companys accounting policies and disclosures require the measurement of fair values for financial instruments. The Company has an established control framework with respect to the measurement of fair values. The management regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the management assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which such valuations should be classified.

"When measuring the fair value of a financial asset or a financial liability, the Company uses observable market data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows. "

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

xviii. Impairment of Assets

The impairment provisions for Financial Assets are based on assumptions about risk of default and expected cash loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation,

based on Companys past history, existing market conditions as well as forward-looking estimates at the end of each reporting period.

In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account, if no such transactions can be identified, an appropriate valuation model is used.

xix. Impairment of Right of use Assets

The Company assesses, at each reporting date, whether there is an indication that a Right-of-Use (ROU) asset may be impaired. Where such indicators exist, the Company determines the recoverable amount of the ROU asset, or of the Cash Generating Unit (CGU) to which it belongs, being the higher of fair value less costs of disposal and value-in-use.

If the recoverable amount is lower than the carrying amount, the carrying amount is reduced to the recoverable amount and the resulting impairment loss is recognised in the Statement of Profit and Loss.

At each reporting date, the Company also assesses whether previously recognised impairment losses may have decreased or no longer exist. An impairment loss is reversed to the extent that the revised carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment been recognised in earlier periods. Reversal of impairment is recognised in the Statement of Profit and Loss.

xx. Exemptions and exceptions availed

De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entitys choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.

Classification and measurement of financial assets

The Company has classified and measured the financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

xxi. Revenue Recognition Sale of Goods / services

The Company derives revenues primarily from business of drilling services. Revenues from contracts with customers are recognized when the performance obligations towards customer have been met. Performance obligations are deemed to have been met when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services and excludes the amount collected on behalf of third party.

Revenue is recognized net of goods and service tax (GST), and variable considerations like discount, volume rebates, returns, pricing incentives to customers and penalties as reduction of revenue on systematic and rational basis over the period of contract as applicable.

xxii. Other Income Recognition Interest Income

Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. Dividend Income

Revenue is recognized when the shareholders right to receive the payment is established by the Balance sheet date.

T/IO

xxiii. Employee benefits

(i) Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. These benefits include compensated absences such as paid annual leave. The undiscounted amount of shortterm employee benefits expected to be paid in exchange for the services rendered by employees is recognised during the year.

(ii) Defined contribution plans

The Companys provident fund scheme is a defined contribution plan. The Companys contribution paid/payable under the schemes is recognized as expense in the Profit and Loss account during the period in which the employee renders the related service. The Company makes specified monthly contributions towards employee provident fund. The contribution towards Provident Fund is deposited with the Regional Provident Fund Commissioner.

(iii) Defined benefit plans

Defined employee benefit plans comprising of contributory provident fund, gratuity is recognized based on the present value of defined benefit obligation which is computed using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. These are accounted either as current employee cost or included in cost of assets as permitted.

Remeasurement of defined retirement benefit plans comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) are recognised in other comprehensive income in the period in which they occur and are not subsequently reclassified to profit or loss.

xxiv. Rig Days Costs

Rig movement costs are booked to the next location drilled/ planned for drilling. Abnormal Rig days costs are considered as un-allocable and charged to the Statement of Profit and Loss.

xxv. "Event Occurring after the Balance Sheet Date: "

Events occurring after the Balance Sheet Date and till the date on which the Financial Statement are approved, which are material in the nature and indicate the need for adjustments are considered in the financial statement.

xxvi. "Expected credit loss:

The measurement of expected credit loss on financial assets is based on the evaluation of collectability and the managements judgement considering external and internal sources of information. A considerable amount of judgement is required in assessing the ultimate realization of the loans having regard to, the past collection history of each party and ongoing dealings with these parties, and assessment of their ability to pay the debt on designated dates.

xxvii. Onerous contracts:

A provision for onerous contracts is recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Company recognizes any impairment loss on the assets associated with that contract."

xxviii. Earnings per share

Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

xxix. Statement of Cash Flow

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

xxx. "Standards Issued but not yet effective :"

"Key sources of estimation uncertainty and critical accounting judgements:

The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Companys financial statements are disclosed below. The Company will adopt this new and amended standard, when it became effective.

i) Recent Pronouncements: - Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31 March 2025, MCA has notified Ind AS 117 Insurance Contracts and amendments to Ind AS 116 Leases, relating to sale and leaseback transactions, applicable to the Company w.e.f. 1 April 2024. The Company has reviewed the new pronouncements and based on its evaluation has determined that it does not applicable to the Group.

In the course of applying the policies outlined in all notes under point i, the Company is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future period, if the revision affects current and future period."

RESULTS OF OPERATIONS

The following table sets forth selected information from our results of operations as a percentage of total income for the period ended June 30, 2025 and Fiscals 2025, Fiscals 2024 and 2023

T in million)

Particulars	Period ended June 30, 2025	% of Total Income	Year ended March 31, 2025	% of Total Income	Year ended March 31, 2024	% of Total Income	Year ended March 31, 2023	% of Total Income
INCOME:
Revenue from Operations	977.26	99.86%	3,544.48	98.49%	1,929.73	97.76%	600.13	92.70%
xxxi. Other Income	1.40	0.14%	54.50	1.51%	44.13	2.24%	47.29	7.30%
Total Income (A)	978.66	100.00%	3,598.98	100.00%	1,973.86	100.00%	647.41	100.00%
EXPENSES:
Operating Expenses	569.61	58.20%	1,952.95	54.26%	1,095.75	55.51%	347.47	53.67%
Employee benefit expenses	53.16	5.43%	367.68	10.22%	289.80	14.68%	108.71	16.79%
Finance costs	9.05	0.92%	216.63	6.02%	101.87	5.16%	35.46	5.48%
Depreciation and amortization	29.18	2.98%	115.57	3.21%	84.07	4.26%	69.10	10.67%
Other expenses	39.84	4.07%	99.59	2.77%	33.25	1.68%	30.81	4.76%
Total Expenses (B)	700.84	71.61%	2,752.42	76.48%	1,604.75	81.30%	591.56	91.37%
Net Profit / (Loss) before tax	277.82	28.39%	846.56	23.52%	369.11	18.70%	55.85	8.63%
Less: Tax expense
(i) Current tax	51.40	5.25%	214.30	5.95%	91.30	4.63%	14.86	2.29%
(ii) Adjustment for earlier years	-	0.00%	3.83	0.11%	0.24	0.01%	0.04	0.01%
(iii) Deferred tax	18.63	1.90%	5.00	0.14%	2.92	0.15%	1.79	0.28%
Total Tax Expense	70.03	7.16%	223.12	6.20%	94.46	4.79%	16.69	2.58%
Net Profit / (Loss) after tax	207.79	21.23%	623.43	17.32%	274.64	13.91%	39.16	6.05%

FOR THE PERIOD ENDED

Total Revenue

Revenue from operations

Our revenue from operations for the period ended June 30, 2025, March 31, 2025, March 31, 2024 and March 31, 2023 was Rs.977.26 million, Rs.3,544.48 million, Rs.1,929.73 million and Rs.600.13 which was 99.86%, 98.49%, 97.76% and 92.70% of our total income.

Other income

Our other income for the period ended June 30, 2025, March 31, 2025, March 31, 2024 and March 31, 2023 was Rs. 1.40 million, Rs. 54.50 million, Rs. 44.13 million and Rs. 47.29 million which was 0.14%, 1.51%, 2.24% and 7.30% of our total income for the same period. The components of our other income were Interest income, foreign exchange gain and profit on sale of fixed assets.

Total Expenses

Operating Expenses

Our Operating Expenses for the period ended June 30, 2025, March 31, 2025, March 31, 2024 and March 31, 2023 was Rs. 569.61 million, Rs. 1,952.95 million, Rs. 1,095.75 million and Rs. 347.47 which was 58.20%, 54.26%, 55.51% and 53.67% respectively of our total income for the same period.

Employee benefit expenses

Our employee benefit expenses for the period ended June 30, 2025, March 31, 2025, March 31, 2024 and March 31, 2023 were Rs. 53.16 million, Rs. 367.68 million, Rs. 289.80 million and Rs. 108.71 which was 5.43%, 10.22%, 14.68% and 16.79% respectively of our total income for the same period.

Finance Cost

Our Finance cost expenses for the period ended June 30, 2025, March 31, 2025 and March 31, 2024 and March 31, 2023 were Rs. 9.05 million, Rs. 216.63 million, Rs. 101.87 million and Rs. 35.46 which was 0.92%, 6.02%, 5.16% and 5.48% respectively of our total income for the same period.

Depreciation and amortization

Our depreciation and amortization for the period ended June 30, 2025, March 31, 2025 and March 31, 2024 and March 31, 2023 was Rs. 29.18 million, Rs. 115.57 million, Rs. 84.07 million and Rs. 69.10 million which was 2.98%, 3.21%, 4.26% and 10.67% of our total income for the same period.

Other expenses

Our other expenses for the period ended June 30, 2025, March 31, 2025, March 31, 2024 and March 31, 2023 were Rs. 39.84 million, Rs. 99.59 million, Rs. 33.25 million and Rs. 30.81 million which was 4.07%, 2.77%, 1.68% and 4.67% of our total income for the same period. Our other expenses primarily consist of rent, legal and professional expenses and insurance etc.

Tax expenses

Our current tax expenses for the period ended June 30, 2025, March 31, 2025, March 31, 2024 and March 31, 2023 was Rs. 70.03 million, Rs. 223.12 million Rs. 94.46 million and Rs. 16.69 million respectively which was 7.16%, 6.20%, 4.79% and 2.58% of our total income for the same period.

Profit for the year

Our profit for the ended June 30, 2025, March 31, 2025, March 31, 2024 and March 31, 2023 was Rs. 207.79 million, Rs. 623.43 million, Rs. 274.64 million and Rs. 39.16 million which is 21.23%, 17.32%, 13.91% and 6.05% of our total income for the same period.

FISCAL 2025 COMPARED TO FISCAL 2024

Total revenue

Revenue from operations

Revenue from operations grew by 83.68% to Rs.3,544.48 million in Fiscal 2025, up from Rs.1,929.73 million in Fiscal 2024, primarily driven by higher contract income from our long-term customer and the addition of a new customer contract.

Other income

Other income increased by 23.51% to Rs. 54.50 million in Fiscal 2025 from Rs. 44.13 million in Fiscal 2024. This increase was due to increase in interest income and foreign exchange gain.

Total Expenses

Operating Expenses

Our Operating Expenses increased by 78.23% to Rs. 1,952.95 million in Fiscal 2025 from Rs. 1,095.75 million in Fiscal 2024. Such increase was predominantly due to increase in purchases and job work charges.

Employee benefit expenses

Employee benefits expenses increased by 26.87% to Rs. 367.68 million in Fiscal 2025 from Rs. 289.80 million in Fiscal 2024. This was predominantly due to an increase in salary and wages.

Finance costs

Finance costs increased by 112.65% to Rs. 216.63 million in Fiscal 2025 from Rs. 101.87 million in Fiscal 2024. This was predominantly due to increase in interest on our borrowings from banks and other interest cost.

Depreciation and amortization expense

Depreciation and amortization expense was increased by 37.46% to ^115.57 million in Fiscal 2025 from Rs. 84.07 million in Fiscal 2024. This was predominantly due to the resultant depreciation of property, plant and equipment.

Other Expenses

Other expenses increased by 199.51% to Rs. 99.59 million in Fiscal 2025 from Rs. 33.25 million in Fiscal 2024. Our other expenses primarily are legal & professional fees, Insurance and Rent etc. Such increase was in-line with an increase in the revenue, as described above, which required an increase in other expenses.

Tax expense s

Our current tax expenses increased to 223.12 million in 2025 from Rs. 94.46 million in 2024. This was predominantly due to an increase in profit for the year. Deferred tax increased to Rs. 5.00 million in Fiscal 2025 as compared to Rs. 2.92 million in Fiscal 2024.

Profit for the year

Due to the reasons stated above, our profit for the year increased to Rs. 623.43 million in Fiscal 2025 from Rs. 282.02 million in Fiscal 2024.

FISCAL 2024 COMPARED TO FISCAL 2023

Total revenue Revenue from operations

Our revenue from operations increased by 221.55% to Rs. 1,929.73 million in Fiscal 2024 from Rs. 600.13 million in Fiscal 2023, primarily driven by higher contract income from our long-term customer and the addition of a new customer contract.

Other income

Other income decreased by 6.67% to Rs. 44.13 million in Fiscal 2024 from Rs. 47.29 million in Fiscal 2023. This decrease was due to decrease in compensation received on settlement of contract.

Total Expenses

Operating Expenses

Our Operating Expenses increased by 215.35% to Rs. 1,095.75 million in Fiscal 2025 from Rs. 347.47 million in Fiscal 2024. Such increase was predominantly due to increase in purchases and job work charges.

Employee benefit expenses

Employee benefits expenses increased by 166.58% to Rs. 289.80 million in Fiscal 2024 from Rs. 108.71 million in Fiscal 2023. This was predominantly due to an increase in salary and wages.

Finance costs

Finance costs increased by 187.27% to Rs. 101.87 million in Fiscal 2024 from Rs. 35.46 million in Fiscal 2023. This was predominantly due to increase in interest on our borrowings from banks and other interest cost.

Depreciation and amortization expense

Depreciation and amortization expense was increased by 21.66% to Rs. 84.07 million in Fiscal 2024 from Rs. 69.10 million in Fiscal 2023. This was predominantly due to the resultant depreciation of property, plant and equipment.

Other Expenses

Other expenses increased by 7.91% to Rs. 33.25 million in Fiscal 2024 from Rs. 30.81 million in Fiscal 2023. Our other expenses primarily are legal & professional fees, Insurance and Rent etc. Such increase was in-line with an increase in the revenue, as described above, which required an increase in other expenses.

Tax expenses

Our current tax expenses increased to Rs.94.46 million in 2024 from Rs. 16.69 million in 2023. This was predominantly due to an increase in profit for the year. Deferred tax increased to Rs. 2.92 million in Fiscal 2024 as compared to Rs. 1.79 million in Fiscal 2023.

Profit for the year

Due to the reasons stated above, our profit for the year increased to Rs. 274.64 million in Fiscal 2024 from Rs. 39.16 million in Fiscal 2023.

DISCUSSION ON THE STATEMENT OF CASH FLOWS

The following table sets forth certain information relating to our Companys statement of cash flows for the periods indicated:

(Z in million)

Particulars	Period ended	Fiscal
	June 30, 2025	2025	2024	2023
Net cash flows (used in) from operating activities	43.93	629.86	63.59	69.35
Net cash flows (used in) from investing activities	(23.74)	(425.15)	(557.27)	(141.04)
Net cash flows (used in) from financing activities	(59.71)	(232.18)	565.85	(46.05)

Operating activities

Net cash from operating activities in period ended June 30, 2025 was Rs.43.90 million as compared to the profit before tax of Rs.277.82 million for the same period. This difference is primarily on account of trade receivables, changes in trade payables, other current assets and inventory

In Fiscal 2025, net cash generated from operating activities was Rs.629.87 million. This comprised of the profit before tax of Rs.846.56 million, which was primarily adjusted for depreciation and amortization expenses of Rs.115.57 million., which was primarily adjusted for working capital changes. We also paid an income tax of Rs.218.13 million.

In Fiscal 2024, net cash generated from operating activities was Rs.63.59 million. This comprised of the profit before tax of Rs.369.11 million, which was primarily adjusted for depreciation and amortization expenses of Rs.84.07 million, which was primarily adjusted for working capital changes. We also paid an income tax of Rs.91.54 million.

In Fiscal 2023, net cash generated from operating activities was Rs.69.35 million. This comprised of the profit before tax of Rs.55.85 million, which was primarily adjusted for depreciation and amortization expenses of Rs.69.10 million., which was primarily adjusted for working capital changes. We also paid an income tax of Rs.14.90 million.

Investing activities

In the three months period ended June 30, 2025, the net cash invested in Investing Activities was negative Rs.23.74 million. This was majorly on account of purchase of Property, plant and equipment

In Fiscal 2025, net cash used in investing activities was negative Rs.425.15 million, which primarily due to capital expenditure on fixed assets including capital advances of Rs.575.22 million

In Fiscal 2024, net cash used in investing activities was negative Rs.557.27 million, which was primarily due to capital expenditure on fixed assets including capital advances of Rs.595.29 million

In Fiscal 2023, net cash used in investing activities was negative Rs.141.04 million, which primarily due to increase in non-current investment of Rs.135.00 million and to capital expenditure on fixed assets including capital advances of Rs.28.28 million.

Financing activities

Net cash from financing activities in the period ended June 30, 2025 was negative of Rs.59.68 million. This was majorly on account of repayments of short-term loans.

In Fiscal 2025, net cash used in financing activities was negative Rs.232.19 million, which predominantly comprised of net proceeds from Short-term borrowings of Rs.151.39 million and repayment of long-term borrowings of Rs.172.63 and payment of finance cost of Rs.210.90 million

In Fiscal 2024, net cash flow from financing activities was Rs.565.85 million, which predominantly comprised of net proceeds from long-term borrowings of Rs.537.74 million and from other short-term borrowings of Rs.126.88 million

In Fiscal 2023, net cash used in financing activities was negative Rs.46.05 million, which predominantly comprised of repayments of long-term borrowings of Rs.7.68 million and Short-term borrowings of Rs.5.73 million and payment of finance cost of Rs.32.64 million.

Contingent Liabilities

As on June 30, 2025, the Company has contingent liabilities as follows:

Particulars	Amount - June 30, 2025
Bank Guarantee	58.54
Corporate Guarantee (To Aditi Enterprises Pvt Ltd.)	162.80
Corporate Guarantee (To Amrit Papers Pvt Ltd.)	610.65

OTHER MATTERS

1. Unusual or infrequent events or transactions

Except as described in this Draft Red Herring Prospectus, during the periods under review there have been no transactions or events, which in our best judgment, would be considered unusual or infrequent.

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

Other than as described in the Section titled " Financial Information " and chapter titled " Managements Discussion and Analysis of Financial Conditions and Results of Operations", beginning on pages no. 326 and 332 respectively of Draft Red Herring Prospectus respectively, to our knowledge there are no significant economic changes that materially affected or are 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 revenue or income from continuing operations

Other than as described in the chapter titled " Risk Factors" and " Managements Discussion and Analysis of Financial Conditions and Result of Operations ", beginning on page 36 and 332 respectively of Draft Red Herring Prospectus, best to our knowledge there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.

4. Future relationship between Costs and Income

Other than as described in the chapter titled " Risk Factors" beginning on page 36 of Draft Red Herring Prospectus, best to our knowledge there are no factors, which will affect the future relationship between costs and income or which are expected to have a material adverse impact on our operations and finances.

5. The extent to which significant increases in revenue or income from operations are attributable to higher contract income, acquisition of new contracts, and addition of new customers.

6. The extent to which the business is seasonal.

Our business is not seasonal in nature

7. Any significant dependence on single or few customers

The income from top ten customers comprises of 100.00% of our Revenue from Operation for the period ended June 30, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively. For further details, please refer chapter " Risk Factors" & "Our Business " beginning on page 36 and 216, respectively of Draft Red Herring Prospectus.

8. Competition Conditions

We operate in a competitive environment and expect to continue to compete with existing and potential competitors. See " Risk Factors", " Industry Overview and "Our Business" on pages 36, 124 and 216, respectively, for further details on competitive conditions that we face across our various business segments.

9. Significant Developments after June 30, 2025 that may affect our future results of operations

Except as disclosed below, there have been no events or circumstances since the date of the last financial statements as disclosed in the Draft Red Herring Prospectus which materially or adversely affect or is likely to affect the profitability of our Company, or the value of our assets, or our ability to pay liabilities within next twelve months:

i. Our Company has paid unsecured loan to one of its Group Company (Amrit Papers Private Limited) during the period from June 30, 2025 to October 31, 2025 amounting to Rs 100.55 million;

ii. Pushpa Panwar has been appointed as Company Secretary and Compliance Officer of the Company vide board resolution dated August 02, 2025;

iii. Giraj Daga has been appointed as Chief Financial Officer of the Company vide board resolution dated November 01, 2025;

iv. Rajat Sharma has been appointed as Chief executive Officer of the Company vide board resolution dated November 01, 2025.