Shri Kanha Stainless Ltd Management Discussions

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our restated financial statements as of and for the Year ended March 31, 2025 \, 2024 and 2023 prepared in accordance with the Companies Act, 1956 and Companies Act, 2013 to the extent applicable and AS and restated in accordance with the SEBI (ICDR) Regulations and ICAI Guidance Note, including the schedules, annexure and notes thereto and the reports thereon, included in "Financial Information" beginning on page 174 of this Draft Prospectus. You should read the following discussion which contains forward-looking statements along with our restated financial statements which reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those set forth in "Risk Factors" and "Forward-Looking Statements" beginning on pages 27 and 19 respectively, of this Draft Prospectus. Our Financial Year ends on March31 of each year. Accordingly, all references to a particular Financial Year are to the 12 months ended March 31 of that year.

BUSINESS OVER VIEW

Shri Kanha Stainless Limited founded in 2015 by Mr. Jai Bhagwan Agarwal and Mr. Shashank Agrawal.

Shri Kanha Stainless Limited is a leading manufacturer of high-quality precision stainless steel cold rolled (CR) strips in India. With a vision to offer premium stainless steel solutions, the company specializes in converting hot rolled (HR) coils into CR coils across grades 200, 300, and 400, in thicknesses ranging from 0.08mm to 2.00mm.

The company serves various industry segments through a robust network of 40 50 dealers and traders, offering slitting services for material 5mm and above, in both hard and soft form. Shri Kanha Stainless is committed to delivering customer-centric, ethically driven, and technologically efficient manufacturing, while ensuring stakeholder welfare and continuous operational excellence through cost optimization and adoption of high-performance machinery.

Our current business profiles are as follows: Infrastructure Product Portfolio Rolling Mill

20 Hi Rolling Mill equipped with AGC to roll precision strips with close tolerance. 29" WIDE

Annealing & Pickling Conventional Line 1 No. Bright Annealing 2 Nos. Deburring Line 1No. Circle Cutting 3 Nos Slitting Line 3 Nos. Sheet Cutting 1 No. Polish Machin 1 No.

Grades / Material designation

AISI 200 Series stainless steel

AISI 300 Series stainless steel

AISI 400 Series stainless steel* Size Range

Thickness 0.08mm to 2.00mm

Width 750mm to 3.5mm

Edge Condition Mill Edge Slit Edge Deburred Edge

Deburred & Round Edge Deburred & Chamfered Edge

Surface Finish

2D (Bull Finish)

Hard Material (1/4 Hard, 1/2 Hard, 3/4 Hard, Full Hard)

2B (Soft Finish)

BA (Mirror Finish)

*AISI - American Iron and Steel Institute

OUR PRODUCT RANGE:

1. Cold Rolling of Stainless-Steel Precision Strips

We provide a very extensive stainless-steel strip & stainless-steel coil mix. Most of the stainless-steel strips and stainless-steel coils are modified to serve the need & requirement of different Industrial or Commercial segments. We are the manufacturer and supplier in the same field. We produce these things with a safe edge to match the overall requirements of the customers. Its typically used in heat exchangers, high voltage heating elements, flexible tubing, filtration devices, cutlery products, springs, and surgical instruments as well. Despite the fact, we have an extensive range of stainless-steel coils and stainless-steel strips are available in 200, 300, 400 series & grades and each and every stainless-steel coil and stainless-steel strips have their own characteristics with good material. The standard operating procedure needs and requirements are carried out by the following quality control equipment.

Precise Sitting to finish Size

Edge Deburred Strips

Round Edge Strips

Chamfered Edge Strips

2. Stainless Steel Circle

Width- 5" OD to 27" OD

Thickness - 0.1 to 2.00 mm

3. Stainless Steel Sheet

Width 30 mm to 1250 mm,

Thickness - 0.2 mm to 3.00 mm

*We can cut the sheet according to customer requirements.

Over the past three fiscals, our business has grown significantly as evidenced by the following operational and financial performance metrics for the specific periods

As per Restated Financial statements

Key Financial Performance	March 31,2025	March 31,2024	March 31,2023
Revenue from Operations(1)	14,579.11	13,037.44	13,503.95
EBITDA(2)	1338.01	824.29	436.32
EBITDA Margin (%)(3)	9.18%	6.32%	3.23%
PAT(4)	579.03	260.27	72.02
PAT Margin(%)(5)	3.97%	2.00%	0.54%
Return on equity(%)(6)	47.60%	40.84%	23.00%
Debt equity ratio(times)(7)	4.19	8.47	14.13
Current Ratio(times)(8)	1.03	0.84	0.75
Retuen on capital employed	0.19	0.13	0.07
(%)(9)

(1) Revenue from operation means revenue from sales and other operating revenues

(2) EBITDA is calculated as Profit before tax + Depreciation + Interest Expenses - Other Income (3) EBITDA Margin is calculated as EBITDA divided by Revenue from Operations (4) PAT is calculated as Profit before tax Tax Expenses (5) PAT Margin is calculated as PAT for the year divided by revenue from operations (6) Return on Equity is ratio of Profit after Tax and Average Shareholder fund (7) Debt to Equity ratio is calculated as Long-Term Debt + Short Term Debt divided by equity (8) Current Ratio is calculated by dividing Current Assets to Current Liabilities

(9) Return on capital employed is calculated by profit before tax + finance cost divided by Shareholders funds + Long

Term

Borrowings + Short Term Borrowings + Deferred Tax Liabilities (Net) - Intangible assets - Intangible Assets under development

Significant Developments After March 31, 2025 that may affect our future results of operations

Except as discussed below and elsewhere in this Draft Prospectus, in the opinion of the Board of Directors of our Company

Significant Developments subsequent to the last audited period:

In the opinion of the Board of Directors of our Company, since the date of the last audited period ended March31, 2025 as disclosed in this Draft Prospectus, there are no circumstances that materially or adversely affect or are likely to affect the trading or profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months except as follows:

1. The company has increased its Authorized share capital from INR 25,00,000 to INR 1,00,00,000 Pursuant to Extra ordinary resolution passed at the EGM meeting held on July 22, 2015

2. The company has increased its Authorized share capital from INR 1,00,00,000 to INR 4,00,00,000/- pursuant to Extra ordinary resolution passed at the EGM meeting held on November 22, 2018.

3. The company has increased its Authorized share capital from INR4,00,00,000/- to

INR 16,00,00,000 pursuant to Extra ordinary resolution passed at the EGM meeting held on June 02, 2025 .

4. The Board of Directors have decided to get their equity shares listed on Emerge Platform of National Stock Exchange of India Limited and pursuant to Section 62(1)(c) of the Companies Act 2013, by a resolution passed at its meeting held on June 11, 2025, proposed the Issue, subject to the approval of the shareholders and such other authorities as may be necessary.

5. The shareholders of the Company have, pursuant to Section 62(1)(c) of the Companies Act, 2013, by a special resolution passed in the Extraordinary General Meeting held on June11, 2025, authorized the Initial Public Issue.

6. The Company issued shares by way of bonus in the ratio of 11:1 pursuant to boards resolution passed at the board meeting held on June 11, 2025, and shareholders resolution passed at the general meeting of our Company held on June 11, 2025.

Factors Affecting our Results of Operations:

Our financial condition and results of operations are affected by numerous factors and uncertainties, including those discussed in the section titled ‘Risk Factors on page 27 of this Letter of Offer. The following is a discussion of certain factors that have had, and we expect will continue to have, a significant effect on our financial condition and the results of operations:

Any adverse changes in central or state government policies;

Any qualifications or other observations made by our statutory auditors which may affect our results of operations;

Loss of one or more of our key customers and/or suppliers;

An increase in the productivity and overall efficiency of our competitors;

Our ability to maintain and enhance our brand image;

Our reliance one existing suppliers for our raw materials;

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

Changes in technology and our ability to manage any disruption or failure of our technology systems;

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

The performance of the financial markets in India and globally;

Occurrences of natural disasters or calamities affecting the areas in which we have operations;

Market fluctuations and industry dynamics beyond our control;

Our ability to compete effectively, particularly in new markets and businesses;

Changes in foreign exchange rates or other rates or prices;

Inability to collect overdue and receivables from, or invoice our unbilled services to, our customers, our results of operations;

Other factors beyond our control;

Our ability to manager is that arise from these factors;

Changes in domestic and foreign laws, regulations and taxes and changes in competition in our industry;

Inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals or non-compliance with and changes in safety, health and environmental laws and other applicable regulations may adversely affect our business, financial condition, results of operations and prospects.

SIGNIFICANT ACCOUNTING POLICIES:

For Significant accounting policies please refer "Significant Accounting Policies to the Restated Financial Statements", under

Section titled "Financial Information" beginning on page 174 of the Draft Prospectus.

SUMMARY OF THE RESULTS OF OPERATION:

The following table sets forth select financial data from restated profit and loss accounts for the financial year(s) ended on March 31, 2025, March 31, 2024 and March 31, 2023 and the components of which are also expressed as a percentage of total income for such periods.

	FortheyearendedMarch31,
Particulars	F.Y. 2024-2025	% of Total Revenue	F.Y. 2023- 2024	% of Total Revenue	F.Y. 2022- 2023	% of Total Revenue
Revenue from Operations	14,579.11	99.59%	13,037.44	99.53%	13,503.95	98.95%
Other Income	59.60	0.41%	62.32	0.47%	143.10	1.05%
Total	14,638.71	100.00%	13,099.76	100.00%	13,647.05	100.00%
Expenditure
Cost of Material Consumed	12,930.94	88.33%	10,377.67	79.22%	12,080.04	88.52%
Purchase of Stock in trade	-	0.00%	811.40	6.19%	0	0.00%
Changes in Inventories of Finished Goods	(347.17)	(2.37) %	269.81	2.06%	275.83	2.02%
Employee Benefit Expenses	295.11	2.02%	296.89	2.27%	259.65	1.90%
Finance Costs	476.32	3.25%	399.94	3.05%	355.04	2.60%
Depreciation and Amortization Expense	152.89	1.04%	134.02	1.02%	129.8	0.95%

 

Other Expenses	362.21	2.47%	457.39	3.49%	452.1	3.31%
Total	13,870.31	94.75%	12,747.11	97.31%	13,552.46	99.31%
Profit before Tax and exceptional items	768.40	5.25%	352.65	2.69%	94.58	0.69%
Exceptional Items	-	0.00%	-	0.00%	-	0.00%
Net Profit before Tax	768.40	5.25%	352.65	2.69%	94.58	0.69%
Less Provision for Taxes
Current Tax	119.88	0.82%	58.86	0.45%	14.78	0.11%
Deferred Tax	(9.30)	(0.06)%	74.65	0.57%	22.55	0.17%
MAT Credit	78.68	0.54%	(41.13)	(0.31) %	(14.78)	(0.11)%
Tax Adjustments of earlier Years	0.12	-	-	-	-	-
Net Profit after Tax	579.03	3.96%	260.27	1.99%	72.02	0.53%

MAIN COMPONENTS OF PROFIT AND LOSS STATEMENT

Income

Our Total Income comprises of Revenue from core business operations and Other Income.

Revenue from operations

The Revenue from operations consist of revenue from Sale of Products and Sale of Services. Our revenue from operations as a percentage of total revenue was 99.59%, 99.53% and 98.95% for the Financial Year 2024-2025, Financial Year 2023-2024 and Financial Year 2022-2023 respectively.

Other Income

Other Income comprises of Interest Income, Duty Drawback, Rental Income, Foreign Exchange Gain, Insurance Claim and Other Income. Other Income as a percentage of Total Revenue was 0.41%, 0.48% & 1.05% for the Financial Year 2024-2025, Financial Year 2023-2024 and Financial Year 2022-2023 respectively.

In Financial Year 2024-2025 other income consist of Interest on Fixed Deposit and Rental Income, i

n Financial Year 2023-2024 the other income consists of Interest Income, Rental Income, Duty Drawback and Foreign Exchange and in FY 2022-2023 the other income consists of Interest Income, Rental Income, Duty Drawback, Foreign Exchange Gain, Insurance Claims and Other incomes.

Expenditure

Total expenditure primarily comprises Cost of Materials Consumed, Purchases of Stock-in-Trade, Changes in

Inventories of Finished Goods, Employee Benefit Expenses, Finance Costs, Depreciation and Amortization, and Other Operating Expenses. These components collectively accounted for 94.75%, 97.31%, and 99.31% of total revenue in the financial years 2024 25, 2023 24, and 2022 23 respectively.

Cost of Material Consumed:

Cost of Material Consumed is represented by opening stock of raw materials, packing material, consumables and stores & spares plus purchases of raw materials, packing material, consumables & stores and spares less closing stock of raw materials, packing material, consumables and stores & spares. Cost of Material Consumed form a major part of the Total Expenditure and over the years with 88.33%, 79.22% and 88.52% recorded in the Financial Year 2024-2025, Financial Year 2023-2024 and Financial Year 2022-2023 respectively.

Employee Benefit Expenses:

Employee Benefit expenses include Salaries, wages and bonus, Managerial Remuneration, Contribution to provident and other funds, Gratuity and Staff welfare Expenses. Employee Benefit Expenses as a percentage of Total Revenue was 2.02%, 2.27% and 1.90% in the Financial Year 2024-2025, Financial Year 2023-2024 and Financial Year 2022-2023 respectively.

Other Expenses:

Other Expenses are bifurcated into two components. First component consists of Direct Expenses which includes Freight expenses, Power and Fuels, Insurance Expenses, Job charges, Repairs & Maintenance. Second component consists of Audit Fees, Business Promotion Expenses, Interest Expenses, Insurance Expenses, Rent, Rates and Taxes, Legal Charges, Miscellaneous Expenses, Office Expenses, Professional Fees, Selling Expenses, and other expenses. Other Expenses as a percentage of Total Revenue was 2.47%, 3.49% and 3.31% in Financial Year 2024-2025, Financial Year 2023-2024 and Financial Year 2022-2023 respectively.

Finance Cost:

Finance Cost includes Interest on Secured Loan, Interest on Term Loan, Interest on Working Capital Loan and Interest on Unsecured Loan which have increased from 355.04 Lakhs in Financial Year 2022-2023 to 476.32 Lakhs in

Financial Year 2024-2025.

Depreciation and Amortization:

Depreciation and Amortization includes Depreciation on Tangible assets which has increased from 0.95% in Financial Year 2022-2023 to 1.04% in Financial Year 2024-2025.

FINANCIAL YEAR 2024-2025 COMPARED WITH FINANCIAL YEAR 2023-2024

Total income for the financial year 2024 25 increased by 11.75%, rising from 13,099.76 lakhs in 2023 24 to

14,638.71 lakhs. The growth reflects improved operational performance and a corresponding uplift in revenue streams

Revenue from Operations

Revenue from operations increased by 11.82%, rising from 13,037.44 lakhs in the financial year 2023 24 to 14,579.11 lakhs in the financial year 2024 25. This growth was primarily driven by higher product sales during the year.

Other Income

Other Income decreased marginally from 62.32 lakhs in financial year 2023-2024 to 59.60 lakhs in financial year

2024-2025.

Cost of Materials Consumed

Cost of Materials consumed increased by 24.60% from 10,377.67 lakhs for financial Year 2023-2024 to 12,930.94 lakhs for financial Year 2024-25. The increase in the cost of materials consumed can be attributed to Increase in sales by 11.74% from the previous year. The Cost of material consumed as a percentage of sales has increased by 9.11% from 79.22% of total Revenue for financial Year 2023-2024 to 88.33% of Total Revenue for FY 2024-25.

Employee Benefit Expenses

Employee Benefit Expense has decreased marginally by 0.60% from 296.89 lakhs for financial year 2023-2024 to

295.11 lakhs for financial Year 2024- 2025 mainly due to decrease in Gratuity expenses.

Other Expenses

Other Expenses have decreased by 20.78% from 457.39 lakhs in financial year 2023-2024 to 362.33 lakhs in financial year 2024-2025 primarily due to decrease in the Direct Expense segment of the other expenses, specifically due to decrease in power and fuel expenses and freight expenses from 310.31 lakhs and 62.72 lakhs in financial year 2023-24 to 212.70 lakhs and 43.81 lakhs respectively in financial year 2024-2025.

Depreciation and Amortization

Depreciation and amortization expense increased from 134.02 lakhs in the financial year 2023 24 to 152.89 lakhs in

2024 25. The rise was primarily due to additions to tangible assets during the year.

Profit before tax

Profits before tax have increased by 117.89% from 352.65 lakhs for financial Year 2023-2024 to 768.29 lakhs for financial 2024-25. The substantial increase in Profit before Tax was due to a decrease in the cost of goods sold and other expenses recorded during FY 2024-25.

Tax Expense

Tax Expense has increased to 189.38 lakhs from 92.38 lakhs from financial 2024-2025 to financial year 2023-24. The increase in tax expense incurred was primarily due to higher profit before tax for financial 2024-2025 as compared to financial 2023-2024.

Profit after tax

Profit after tax has increased by 122.47% from 260.27 lakhs for financial year 2023-2024 to 579.05 lakhs for financial year 2024-2025. The resultant effect was due to higher increase in revenues as compared to the expenses incurred during the year.

Other key ratios:

Particulars	For the Financial Years ended March 31,
	2025	2024
Return on Net-worth %	47.61%	40.85%
Current Ratio (times)	1.03	0.84

Return on Net-worth

This is defined as Net profit after tax by Net-worth, based on the Restated summary statements.

Current Ratio

This is defined as total current assets by total current liabilities, based on the Restated financial Statements. FINANCIAL YEAR 2023-2024 COMPARED WITH 2022-2023

The Total Income has marginally decreased from 13,647.05 lakhs for financial year 2022-23 to 13,099.76 lakhs for financial year 2023-2024, resulting in a decrease of 4.18% in financial year 2023-2024 from financial year 2022-2023.

Revenue from operations

Revenue from operations has marginally decreased by 3.58% from 13,503.95 lakhs for financial 2022-2023 to

13,037.44 lakhs for financial year 2023-2024. Increase in the revenue from operations can be primarily attributable to increase in business activity post covid-19.

Other Income

Other Income has decreased from 143.10 lakhs for financial year 2022-2023 to 62.32 lakhs for financial year 2023-2024.

Cost of Material Consumed

Cost of Material consumed has decreased from 12010.04 lakhs for financial year 2022-2023 to 10,377.67 lakhs for financial year 2023-2024 primarily due to decrease in purchase price of the materials.

Employee Benefit Expense

Employee Benefit Expense has increased from 259.65 lakhs for financial year 2022-2023 to 296.89 lakhs for financial year 2023-2024 primarily due to an increased in Salaries, wages and bonus, Managerial Remuneration and Gratuity expenses which constituted majority of the Expenses.

Other Expenses

Other Expenses has increased marginally during the year from 452.10 lakhs for financial year 2022-2023 to 457.39 lakhs for financial year 2023- 2024 primarily due to an additional job charges expenses incurred of 8.99 Lakhs during financial year 2023-2024.

Depreciation and Amortization

Depreciation and Amortization has been increased from 129.80 lakhs in the financial year 2022-2023 to 134.02 lakhs in financial year 2023-2024 due to additions to tangible assets during the financial year 2023-2024.

Profit before Tax

Profit before tax has increased from 94.58 lakhs in financial year 2022-2023 to profit of 352.65 lakhs in financial

Year 2023-2024. The substantial increase in Profit before Tax was due to a decrease in the cost of goods sold and other expenses recorded during financial year 2023-2024

Tax Expense

Tax expense has increased from 22.55 lakhs of tax expenses in financial year 2022-2023 to 92.38 lakhs for financial

2023-2024 primarily due to increase the Profit before Tax for year 2023-2024.

Profit after Tax

Profit after tax has increased from 72.02 lakhs for financial 2022-2023 to 260.27 lakhs for financial Year 2023-2024. Other Key Ratios: Particulars For the Financial Years ended March 31, 2024 2023 Return on Net-worth % 40.85% 19.11% Current Ratio 0.84 0.75

Return on Net-worth

This is defined as Net profit after tax by Net-worth, based on the Restated financial statements. Current Ratio

This is defined as total current assets by total current liabilities, based on the Restated financial Statements.

CASHFLOW

The table below summaries is cash flows from our Restated Financial Information for the financial years March 31, 2025, March 31, 2024, and March 31, 2023: (Rs.in Lakhs)

Particulars For the Financial Years Ended March 31, 2025 2024 2023

Net cash (used in)/ Generated from operating activities (794.99) 376.15 237.73 Net cash (used in)/Generated from investing activities 380.31 (140.61) (322.07) Net cash (used in)/Generated from finance activities (771.92) 957.63 84.83

For the year ended 31stMarch 2025

The Net cash (used in) /Generated from operating activities is ( 794.99) lakhs which consisted of profit before tax of 768.29 lakhs as adjusted primarily for: I. Depreciation & Amortization of non-current Assets of 152.89 lakhs II. Interest and finance Charges of 476.32 lakhs for the period III. Gratuity expenses of 7.74 lakhs.

IV. Interest Income ( 58.10) lakhs.

V. Working capital changes primarily due to increase in Trade Receivables of ( 2551.90) lakhs, increase in Short Term Loans and Advances of ( 44.21) lakhs, increase in inventories of raw materials, finished goods, and work in progress of ( 1667.50) lakhs, increase in Other Current Assets of ( 32.30) lakhs, increase in Trade Payables of 2200.76 lakhs and increase in Other Liabilities of 29.65 lakhs.

For the year ended 31stMarch 2024

The Net cash (used-in)/Generated from operating activities is 376.15 lakhs which consisted of profit before tax of 352.65 lakhs as adjusted primarily for:

I. Depreciation & Amortization of non-current Assets of 134.02 lakhs. II. Profit/(Loss) on sale of Property, Plant & Equipment of 0.09 lakhs III. Interest and Finance Charges of 399.94 lakhs for the period.

IV. Interest Income ( 59.14) lakhs. V. Gratuity expenses of 14.32 lakhs

VI. Working capital changes primarily due to increase in Trade Receivables of ( 1,746.45) lakhs, decrease in Short Term Loans and Advances of 89.03 lakhs, decrease in other current assets of 131.04 lakhs, decrease in inventories of raw materials, finished goods, and work in process of 460.42 lakhs, increase in Trade Payables of 596.92 lakhs and increase in Other Liabilities of 16.45 lakhs.

For the year ended 31stMarch 2023

The Net cash (used in)/ Generated from operating activities is 237.73 lakhs which consisted of profit before tax of 94.58 lakhs as adjusted primarily for:

i. Depreciation & Amortization of non-current Assets of 129.80 lakhs. ii. Interest and Finance Charges of 355.04 lakhs for the period. iii. Interest Income ( 56.67) lakhs. iv. Gratuity expenses of 6.06 lakhs v. Working capital changes primarily due to increase in Trade Receivables of ( 168.04) lakhs, increase in Short Term Loans and Advances of ( 279.47) lakhs, decrease in other current assets of 103.42 lakhs, decrease in inventories of raw materials, finished goods, and work in process of ( 146.66) lakhs, decrease in Trade Payables of ( 49.69) lakhs and decrease in Other Liabilities and Provisions of ( 43.21) lakhs.

Cash flow from Investing Activities:

For the year ended March31, 2025

The Net cash (used-in)/Generated from investing activities is 380.31 lakhs primarily due to purchase of Fixed Assets

(net) of

( 85.31) lakhs, Investment made during the period of ( 82.96) lakhs, Interest received during the period of 58.10 Lakhs, decrease in long term loans and advances of 490.48 Lakhs.

For the year ended March31, 2024

The Net cash (used-in)/Generated from Investing Activities is ( 140.61) lakhs primarily due to purchase of Fixed Assets of

( 191.47) lakhs, Interest received during the period of 59.14 Lakhs, increase in long-term loans and advances of ( 36.75) Lakhs, Redemption of Investment of 28.48 lakhs.

For the year ended March 31, 2023

The Net cash (used-in)/Generated from Investing Activities is ( 322.07) lakhs primarily due to purchase of Fixed Assets of

( 340.34) lakhs, Interest income received during the period of 56.67 Lakhs and increase in long-term loans and advances of ( 33.95) lakhs and Investment made during the period of ( 4.46) lakhs.

Cash flow from Financing Activities:

For the year ended March31, 2025

The Net-cash (used-in)/generated from financing activities is ( 771.92) lakhs primarily due to proceeds of Long-Term Borrowings of 197.76 lakhs, Interest and Finance charges incurred of ( 476.32) Lakhs and repayment of Short-term Borrowings of ( 493.36) Lakhs.

For the year ended March31, 2024

The Net-cash (used-in)/ generated from financing activities is 957.54 lakhs primarily due to Interest and Finance charges incurred of ( 399.94) Lakhs and increase of Long Term and Short-Term Borrowings of 1483.23 Lakhs and repayment of long term borrowings of ( 125.66) lakhs.

For the year ended March31, 2023

The Net-cash (used-in)/generated from financing activities is 84.83 lakhs primarily due to Interest and Finance charges incurred of ( 355.04) Lakhs and increase of Long Term and Short-Term Borrowings of 439.87 Lakhs.

OTHERFACTORS

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

1. Unusual or infrequent events or transactions

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

2. Significant economic changes that materially affected or are likely to affect income from continuing operations. There are no significant economic changes that may materially affect or likely to affect income from continuing operations.

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

Apart from the risks as disclosed under Section "Risk Factors" beginning on page 27 of the Draft Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues

Other than as described in the sections "Risk Factors", "Our Business" and "Managements Discussion and Analysis of Financial Condition and Results of Operations" on pages 27, 126 and 206 respectively, to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.

5. Total turnover of each major industry segment in which our Company operates

We currently operating the high-quality precision stainless steel cold rolled strips. For details on revenue break-up from each segment, kindly refer the chapter titled "Our Business" beginning onPage126 v Relevant industry data, as available, has been included in the section titled "Industry Overview" beginning on page 114 of this Draft Prospectus

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

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

7. Seasonality of business

Our Companys business is not seasonal in nature.

8. Competitive conditions

Competitive conditions are as described under the Sections "Industry Overview" and "Our Business" beginning on pages

114 and 126 respectively of this Draft Prospectus