Solarium Green Energy Ltd Management Discussions

OPERATIONS

You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in the Draft Red Herring Prospectus. You should also read the section entitled "Risk Factors " beginning on page 31, which discusses several factors, risks and contingencies that could affect our financial condition and results of operations. The following discussion relates to our Company and is based on our restated financial statements, which have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI Regulations. Portions of the following discussion are also based on internally prepared statistical information and on other sources. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year ("Fiscal Year" or "FY") are to the twelve-month period ended March 31 of that year.

The financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditors dated September 09, 2024 which is included in this Draft Red Herring Prospectus under the section titled "Restated Financial Information" beginning on page 198 of this Draft Red Herring Prospectus. The restated financial statements have been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. We do not provide a reconciliation of our restated financial statements to US GAAP or IFRS and we have not otherwise quantified or identified the impact of the differences between Indian GAAP and U.S. GAAP or IFRS as applied to our restated financial statements.

BUSINESS OVERVIEW

Our company provides Turnkey Solutions which involves design, engineering, procurement & supply, construction & erection, testing, commissioning, associated transmission system and comprehensive Operation & Maintenance ("O&M"). We serve a wide range of projects, including Residential rooftop projects, Commercial and Industrial ("C&I") roof top and Ground Mounted projects, as well as Government Projects. Along with our turnkey solutions, we are also involved in Sale of Solar Products i.e. Solar PV (Photovoltaic) Modules, Solar PV Inverters, Availability Based Tariff Meters ("ABT") and other solar products. We are accredited with various certifications including BIS (Bureau of Indian Standards), ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018.

Our company is benefited from the extensive experience of our Promoters Mr. Ankit Garg and Mr. Pankaj Vallabhbhai Gothi, who are associated with our company since its incorporation and having combined experience of more than 20 (Twenty) years in the various industries including renewable energy industry. We attribute our growth and proven track record of implementing multiple projects to the competent leadership and guidance of our Promoters as well as to our dedicated and qualified team of professionals.

OUR BUSINESS MODEL

We derive our revenue from 2 (Two) major business verticals:

FINANCIAL KPIs OF OUR COMPANY

The financial performance of the company for last three years as per restated financial Statement:

in lakhs)

Particulars	For the Period / Year ended on
	31-Mar-24	31-Mar-23	31-Mar-22
Revenue from Operations (? in Lakhs)	17,739.69	9,878.98	16,736.91
Growth in Revenue from Operations (%)	79.57	(40.97)	NA
Gross Profit (? in Lakhs)	4,740.31	2,004.96	2,486.56
Gross Profit Margin (%)	26.72	20.30	14.86
EBITDA (? in Lakhs)	2,377.51	557.89	449.36
EBITDA Margin (%)	13.40	5.65	2.68
Profit After Tax (? in Lakhs)	1,558.97	173.86	205.04
PAT Margin (%)	8.79	1.76	1.23
RoE (%)	124.38	44.93	45.28
RoCE (%)	54.18	15.92	19.12
Operating Cash Flows (? in Lakhs)	(20.38)	(386.84)	570.07
Number of Projects Completed

 

Particulars	For the Period / Year ended on
	31-Mar-24	31-Mar-23	31-Mar-22
• Residential	3909	2645	1952
• C&I and Ground Mounted	59	50	43
• Government Projects	6	2	-
Number of Employees	119	103	86
Customers (% Contribution to Sales)
Customer Concentration Top 1	21.02%	5.67%	14.62%
Customers Concentration Top 3	28.78%	12.66%	24.45%
Customers Concentration Top 5	33.10%	17.39%	31.43%
Customers Concentration Top 10	41.01%	25.98%	39.71%
Suppliers (% Contribution to Purchases)
Supplier Concentration Top 1	15.78%	15.29%	42.23%
Suppliers Concentration Top 3	35.88%	38.48%	58.41%
Suppliers Concentration Top 5	44.14%	49.23%	64.33%
Suppliers Concentration Top 10	58.10%	62.67%	75.11%

Source: The Figure has been certified by M/s. Abhishek Kumar & Associates, Chartered Accountants vide their certificrte dated September

10, 2024 having UDIN24132305BKEZCK4816.

Notes:

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

2) Growth in Revenue from Operations (%) is calculated as a percentage of Revenue from Operations ofthe relevant period minus Revenue from Operations of the preceding period, divided by Revenue from Operations of the preceding period.

3) Gross Profit is calculated as Revenue from Operations less Cost of Materials consumed and Change in Inventories of Finished Goods.

4) Gross Profit Margin (%) is calculated as Gross Profit divided by Revenue from Operations.

5) EBITDA is calculated as profit for the year, plus tax expenses (consisting ofcurrent tax, deferred tax and tax expenses relating to earlier years), interest expenses and depreciation and amortization expenses reduced by other income.

6) EBITDA Margin (%) is calculated as EBITDA divided by Revenue from Operations.

7) Profit After Tax Means Profit for the period/year as appearing in the Restated Financial Statements.

8) PAT Margin (%) is calculated as Profit after tax for the year as a percentage ofRevenue from Operations.

9) RoE (Return on Equity) (%) is calculated as net profit after tax for the year divided by Average Shareholder Equity.

10) RoCE (Return on Capital Employed) (%) is calculated as earnings before interest and taxes divided by average capital employed. Capital Employed includes Tangible Net Worth, Long-Term Borrowing, Short-Term Borrowing and Deferred Tax Liability/(Deferred Tax Asset).

11) Operating cash flows means net cash generated from/(used in) operating activities as mentioned in the Restated Financial Statements.

12) Number of Projects Completed demonstrates projects completed by our company under different verticals.

13) Number of employees demonstrates total number of employees as on relevant year of March.

14) Customers % Contribution to Sales) is calculated as revenue generated from Top 1, 3, 5 and 10 customers divided by total revenue from operations.

15) Suppliers (% Contribution to Purchases) is calculated as purchases done from Top 1, 3, 5 and 10 suppliers divided by total purchase.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO LAST AUDITED BALANCE SHEET:

After the date of last audited financial statements i.e. March 31, 2024, the Directors of our Company confirm that,

there have not been any significant material developments except mentioned below:

> The Company has made Private Placement of Equity Shares of 3,50,000 Equity Shares at a price of ? 150.00, fully paid at face value of ? 10.00 and Security Premium of ? 140.00 vide Board Meeting dated July 19, 2024.

> The Issue has been authorized by the Board of Directors vide a resolution passed at its meeting held on August 03, 2024, and approved by the shareholders of our Company vide a special resolution at the Extra Ordinary General Meeting held on August 07, 2024.

> Our company has acquired 99.99% stake in Solarium Ventures LLP for consideration amounting to ? 99,990.00 vide Borad Meeting dated August 10, 2024.

FACTORS AFFECTING OUR FUTURE RESULTS OF OPERATIONS:

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

Input costs

Our expenditure on raw material and components consumed represented 72.30%, 80.15% and 86.18% of our total revenue from operations for FY 2023-24, 2022-23 and 2021-22 respectively. Our financial condition and results of operations are significantly impacted by the availability and cost of raw materials which we use in the providing turnkey solutions for EPC (Engineering, Procurement and Commissioning) services and supply of solar products.

Prices of our raw materials are influenced by, among other factors, changes in global economic conditions, industry cycles, demand-supply dynamics, attempts by particular producers to capture market share and speculation in the market. At times, we may not be able to pass on an increase in commodity or raw material prices to our customers. Nevertheless, we continually undertake efforts to reduce our costs in order to protect our margins.

Further, our Company may import raw materials from other countries where payments are made in foreign currencies, which leaves us vulnerable to exchange rate risk. This exposure to foreign exchange risk may also have a significant impact on our results of operations and profitability.

We rely on a selected group of suppliers for procurement of raw materials required for providing turnkey solutions for EPC services and supply of solar products. While this initiative has helped us in improving our operational efficiency, our supplier concentration risks may put us at a risk of interruptions in the availability of the required raw materials, which could reduce our net sales and adversely affect our results of operations.

Changes in product/ service mix and new product offerings

In addition to the total volume of transactions, our operating results also vary depending on product mix. We currently offer a range of Turnkey Solutions for Solar Projects, including Residential Rooftop Projects, Commercial & Industrial ("C&I") Rooftop and Ground-mounted Projects and Government Tenders as well as Products Sales. Our business sector mix has evolved over the years.

In past we were engaged in the manufacturing of Polycrystalline Solar Panel. We commenced our manufacturing operation in the year 2018 from our manufacturing facility located at Bavla, Gujarat for the Polycrystalline Solar Panel. However, we have put halt on our manufacturing operations from February 2024 in light of change in minimum module efficiency. From FY 2021-22, we were primarily engaged in providing Turnkey Solutions for Solar Projects, including Residential Rooftop Projects, Commercial & Industrial ("C&I") and Ground-mounted Projects and Products Sales. In FY 2022-23, we commenced our Government Tenders business. For further information, see "Business Overview" section, starting on page 126.

Following is the product/ service mix of our revenue from operations during the previous three financial years:

Particulars	For the Financial Year ended as on
	March 31, 2024	March 31, 2023	March 31, 2022
• Revenue From Turnkey Solutions
Residential Rooftop Projects	4,024.68	3,094.18	2,478.93
Commercial, Industrial & Ground Mounted Projects	683.52	677.15	2,697.06
Government Projects	5,948.80	464.61	-
Total (A)	10,657.00	4,235.94	5,175.99
• Revenue from Sales of Products
Solar PV Inverters	779.45	2,114.81	0.00
Availability Based Tariff (ABT) Meters	9.20	162.15	0.00

 

Particulars	For the Financial Year ended as on
	March 31, 2024	March 31, 2023	March 31, 2022
Solar PV (Photovoltaic) Modules	5,705.56	3,027.72	9,756.86
Other Solar Products	588.48	338.36	1,804.06
Total (B)	7,082.69	5,643.04	11,560.92
Total (A+B)	17,739.69	9,878.98	16,736.91

Changes in laws and regulations relating to the industry in which we operate

The renewable energy industry in which we operate is subject to constant change. Our business is heavily dependent on Government of India (GoI) and state government policies that encourage establishment and adoption of solar energy projects. We intend to continue growing our operations and presence in Indias solar sector especially given the favorable regulatory environment and several government initiatives. In particular, the solar energy industry benefits from various incentives including subsidies provided by the GoI and state government policies. For example, government projects are only permitted to procure solar PV modules of certain quality and specification from a limited number of select suppliers identified in the Approved List of Models and Manufacturers (ALMM) circulated by MNRE. If any of the benefits or policies are adversely amended, eliminated or not extended beyond their current expiration dates, or if funding for these incentives is reduced, or if governmental support of renewable energy development, particularly solar energy, is discontinued or reduced, it could have an adverse effect on our business and financial condition. We also cannot assure that laws or regulations will not be adopted, enforced or interpreted in the future in a manner that will not have a material adverse effect on our business and results of operations. Any such adverse change in law or applicable policy may require us to face increased compliance costs, obtain additional approvals and licenses, and may also require us to alter our business strategy, or implement onerous requirements and conditions on our operations.

Ability to effectively execute and expand our order book

Our Companys order book as of a particular date comprises the estimated revenues from the total contract value of all the projects awarded to the company. Our Ongoing orderbook consists of 41 projects amounting to ? 16,529.45 Lakhs out of which revenue recognised till March 31, 2024, amounts to ? 5,589.61 Lakhs. The order book of the company is only in relation to Commercial & Industrial ("C&I") and Ground-mounted Projects and Government Projects. The manner in which we calculate and present our Companys order book information may vary from the manner in which such information is calculated and presented by other companies, including our competitors. Though, the order book information included in this Draft Red Herring Prospectus is certified, it does not necessarily indicate our future earnings. Our order book should not be considered in isolation or as a substitute for performance measures. Our order book and the new projects that we have and will continue to bid for in the future will have an effect on the revenues we will earn in the future. In addition, our project implementation schedule may vary due to various factors that may be beyond our control, including, among others, the availability of raw materials, timely delivery and execution of the order. These depend on various factors such as the value of the project, the timeline for completion and payments to be made as per the agreed timelines. For further details refer section "Risk Factors" starting on page 31.

Competition

The industry, in which we are operating, is highly and increasingly competitive and our results of operations and financial condition are sensitive to, and may be materially adversely affected by, competitive pricing and other factors. Competition may result in pricing pressures, reduced profit margins or lost market share or a failure to grow our market share, any of which could substantially harm our business and results of operations. There can be no assurance that we can effectively compete with our competitors in the future, and any such failure to compete effectively may have a material adverse effect on our business, financial condition and results of operations.

OUR SIGNIFICANT ACCOUNTING POLICIES:

There is a change in accounting policy in respect of retirement benefits to employees which was done on cash basis till March 31, 2024, the company has accounted for the same on accrual basis based on liability estimated by way of actuarial valuation report. The effect of such is given retrospectively in Restated Financial Statements.

For Significant accounting policies please refer "Significant Accounting Policies and Notes to Restated Financial Statements", "Annexure - D" beginning under Chapter titled "Restated Financial Information" beginning on page 198 of this Draft Red Herring Prospectus.

PRINCIPAL COMPONENTS OF STATEMENT OF PROFIT AND LOSS

Set forth below are the principal components of statement of profit and loss from our continuing operations: Total Income

Our total income comprises of (i) revenue from operations and (ii) other income.

Revenue from Operations

Our company provides Turnkey Solutions which involves design, engineering, procurement & supply, construction & erection, testing, commissioning, associated transmission system and comprehensive Operation & Maintenance ("O&M"). We serve a wide range of projects, including Residential rooftop projects, Commercial and Industrial ("C&I") roof top and Ground Mounted projects, as well as Government Projects. Along with our turnkey solutions, we are also involved in Sale of Solar Products i.e. Solar PV (Photovoltaic) Modules, Solar PV Inverters, Availability Based Tariff Meters ("ABT") and other solar products. We are accredited with various certifications including BIS (Bureau of Indian Standards), ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018.

Revenue from operations comprises of revenue from i) Residential rooftop projects; ii) Commercial and Industrial ("C&I") roof top and Ground Mounted projects; iii) Government Projects and iv) Revenue from Sales of products which are Solar PV Inverters, Availability Based Tariff (ABT) Meters, Solar PV (Photovoltaic) Modules and Other Solar Products.

Other Income

Other income includes (i) Interest income on FDR, (ii) Discount, Rate Difference & Written off Balances, (iii) Exchange Rate Fluctuations and (iv) Other Income.

Total Expense

Our expenses comprise of: (i) cost of material consumed; (ii) Change in Inventories of Finished Goods; (iii) employee benefits expense; (iv) finance costs; (v) depreciation and amortisation expense; and (vi) other expenses.

Cost of Materials consumed

Cost of materials consumed includes consumption of raw material solar invertor, solar module, solar controller, mounting structure, earthing materials like earthing cables, earthing rod, earthing bag Packing Material, Stores & Consumables required to install solar systems.

Change in Inventories of Finished Goods

Change in Inventories of Finished Goods is a difference between Inventories at the Beginning of the Year and Inventories at the end of the Year.

Employee benefits expense

Employee benefits expenses primarily include (i) Salaries, Wages and Incentives, (ii) contribution to employee benefits (gratuity, provident fund and other funds) and (iii) directors remuneration.

Finance cost

Finance costs include interest expense incurred in relation to short term and long-term borrowings of our company and other borrowing costs and bank charges.

Depreciation and Amortisation expenses

Depreciation mainly includes depreciation on our Factory Building, Plant & Machinery, Electrical Equipments, Other Office Assets, Furniture & Fittings, Motor Vehicles, Computer & Software, Land and Certificates & Trademark.

Other Expenses

Other expense mainly includes Manufacturing Expenses like Custom Duty, Anti-Dumping & Safeguard Duties, Other Import Charges, Freight & Transport Expenses, Installation & Commissioning Service Expenses and Other Expenses; Administrative & Selling & Distribution Expenses like Audit Fees Expenses, Advertisement & Business Promotion Expenses, Legal & Professional Expenses, Office Expenses, Rates & Taxes, Rent Expenses,

Repair & Maintenance Expenses, Stationery and Printing Expenses, Travelling & Conveyance Expenses and Other Expenses.

RESULTS OF OUR OPERATION

The following table sets forth detailed total income data from our Restated Statement of profit and loss for the Financial Years ended March 31, 2024, 2023 and 2022, the components of which are also expressed as a percentage of total Income for such period.

in Lakhs)

Particulars	For the Financial Year ended as on
	March 31, 2024	% of Total Revenue	March 31, 2023	% of Total Revenue	March 31, 2022	% of Total Revenue
Revenue:
Revenue from Operations	17,739.69	99.77	9,878.98	99.86	16,736.91	99.69
Other income	41.14	0.23	13.52	0.14	51.96	0.31
Total Revenue	17,780.83	100.00	9,892.50	100.00	16,788.87	100.00
Expenses:
Cost of Material Consumed	12,825.19	72.13	7,917.58	80.04	14,423.08	85.91
Change in Inventories Finished Goods	174.19	0.98	(43.56)	(0.44)	(172.73)	(1.03)
Employees Benefit Expenses	622.09	3.50	349.28	3.53	300.07	1.79
Finance Costs	241.05	1.36	143.03	1.45	77.98	0.46
Depreciation and Amortization	129.35	0.73	163.08	1.65	97.85	0.58
Other Expenses	1,705.29	9.59	1,058.60	10.70	1,724.82	10.27
Total Expenses	15,697.16	88.28	9,588.01	96.92	16,451.07	97.99
Profit Before Tax	2,083.66	11.72	304.49	3.08	337.80	2.01
Tax Expense:		-		-		-
Current Tax	542.57	3.05	101.35	1.02	122.87	0.73
Excess/Shortage of Taxes Paid	-	-	6.10	0.06	-	-
Deferred Tax	(17.88)	(0.10)	23.18	0.23	9.89	0.06
Profit After Tax	1,558.97	8.77	173.86	1.76	205.04	1.22

COMPARISON OF FINANCIAL YEAR 2023-24 WITH FINANCIAL YEAR 2022-23:

TOTAL INCOME:

Our total income increased by 79.74% from ? 9,892.50 Lakhs in FY 2022-23 to ? 17,780.83 Lakhs in FY 202324, primarily due to an increase in our revenue from operations and other income as discussed below:

Revenue from operations

Revenue from operations comprises of revenue from i) Residential rooftop projects; ii) Commercial and Industrial ("C&I") roof top and Ground Mounted projects; iii) Government Projects and iv) Revenue from Sales of products which are Solar PV Inverters, Availability Based Tariff (ABT) Meters, Solar PV (Photovoltaic) Modules and Other Solar Products.

The total revenue from operations increased by 79.57% from ? 9,878.98 Lakhs in Financial Year 2022-23 to ? 17,739.69 Lakhs in FY 2023-24. The significant increase in revenue can be primarily attributed to the growth in income from government projects. In FY 2022-23, revenue from these projects was ? 464.61 lakhs, which escalated to ? 5,948.80 lakhs in FY 2023-24. This substantial growth is the result of increasing focus on government projects in FY 2023-24, where we actively pursued and secured government tenders, leading to higher revenue. Our company completed 6 Government projects in FY 2023 -24 compared to 2 projects in FY 2022-23.

Further, apart from above, the sale of Solar PV (Photovoltaic) Modules has been increased from ? 3,027.72 Lakhs in FY 2022-23 to ? 5,705.56 Lakhs in FY 2023-24. The primary reason for such increase in sale of solar modules is due to increased demand in FY 2023-24 as compared to FY 2022-23.

State-wise Revenue from operations:

Particulars	For the Financial Year ended as on
	March 31, 2024		March 31, 2023
	Amount (? in Lakhs)	% of total revenue	Amount (? in Lakhs)	% of total revenue
Gujarat	13,949.27	78.63	7,416.31	75.07
Delhi	800.92	4.51	12.56	0.13
Maharashtra	755.98	4.26	634.62	6.42
Rajasthan	643.34	3.63	1,059.00	10.72
Karnataka	355.93	2.01	10.37	0.10
Tamil Nadu	319.21	1.80	8.66	0.09
West Bengal	275.14	1.55	10.69	0.11
Others	639.89	3.61	726.76	7.36
Total	17739.69	100.00	9878.98	100.00

As evident from the above data, our revenue from operations is significantly dependent on State of Gujarat. Revenue from operations from State of Gujarat contributed 78.63% of total revenue from operations in FY 202324 as compared to 75.07% in FY 2022-23.

Other Income:

Other income includes Interest income on FDR, Discount, Rate Difference & Written Off Balances, Exchange Rate Fluctuations and Other Income Other income of the company increased from ? 13.52 Lakhs in FY 2022-23 to ? 41.14 Lakhs for FY 2023-24. Discount, Rate Difference & Written off balances the main constituents of the Other Income for the year FY 2023-24 amount to ?36.40 Lakhs as compared to ?3.33 Lakhs in FY 2022-23.

EXPENDITURE:

Product-Wise Revenue Bifurcation:

Particulars	For the Financial Year ended as on
	March 31, 2024		March 31, 2023
	Amount (? In Lakhs)	% of total revenue	Amount (? In Lakhs)	% of total revenue
• Revenue From Turnkey Solutions
Residential Rooftop Projects	4,024.68	22.69	3,094.18	31.32
Commercial, Industrial & Ground Mounted Projects	683.52	3.85	677.15	6.85
Government Projects	5,948.80	33.53	464.61	4.70
• Revenue from Sales of Products
Solar PV Inverters	779.45	4.39	2,114.81	21.41
Availability Based Tariff (ABT) Meters	9.20	0.05	162.15	1.64
Solar PV (Photovoltaic) Modules	5,705.56	32.16	3,027.72	30.65
Other Solar Products	588.48	3.32	338.36	N=RIGHT>3.43
Total	17,739.69	100.00	9,878.98	100.00

Our total expenses increased by 63.72% from ? 9,588.01 Lakhs in FY 2022-23 to ? 15,697.16 Lakhs in FY 202324. The reasons for change are discussed below:

Cost of Materials consumed

Cost of Materials consumed of the company increased by 61.98% from ? 7,917.58 Lakhs in FY 2022-23 to ?

12.825.19 Lakhs for FY 2023-24. Raw materials like solar invertor, solar module, solar controller, mounting structure, earthing materials like earthing cables, earthing rod, earthing bag Packing Material, Stores & Consumables required to install solar systems. Cost of Materials consumed increased on account of Purchase of Raw Materials during the financial year 2023-24 in line with the increase of sales.

Changes in Inventories of Finished Goods

Changes in Inventories of Finished Goods of the company increased from ? (43.56) Lakhs in FY 2022-23 to ?

174.19 Lakhs for FY 2023-24 due to low value of closing stock in FY 2023-24 compared with FY 2022-23.

Employee Benefit Expenses

Employee Benefit Expenses of the company increased from ? 349.28 Lakhs in FY 2022-23 to ? 622.09 Lakhs for FY 2023-24. Employee Benefit Expenses increased on account Increase in Director Remuneration from ? 24.00 Lakhs in FY 2022-23 to ? 120.00 Lakhs in FY 2023-24. Further, there was increase in Salary and Wages due to number of employees during the FY 2023-24. Our companys number of employees increased from 103 on March 31, 2023 to 119 on March 31, 2024.

Finance Cost

Finance Cost of the company increased from ? 143.03 Lakhs in FY 2022-23 to ? 241.05 Lakhs for FY 2023-24. Finance cost primarily include Interest on long & short borrowings. Finance cost increased on account of Increase in Cash Credit limit during the financial year 2023-24. Interest on cash credit increased from ? 67.26 Lakhs in FY

2022- 23 to ? 166.80 Lakhs for FY 2023-24.

Depreciation

Depreciation of the company decreased from ? 163.08 Lakhs in FY 2022-23 to ? 129.35 Lakhs for FY 2023-24. As company incurred capital expenditure of ? 242.64 Lakhs in FY 2022-23 compared to ? 58.35 Lakhs for FY

2023- 24 and company follows WDV method of depreciation resulted into decrease in depreciation on year-on- year basis.

Other Expenses

Other Expenses of the company increased from ? 1,058.60 Lakhs in FY 2022-23 to ? 1,705.29 Lakhs for FY 2023-24. Other Expenses includes Manufacturing Expenses like Custom Duty, Anti-Dumping & Safeguard Duties, Other Import Charges, Freight & Transport Expenses, Installation & Commissioning Service Expenses and Other Expenses; Administrative & Selling & Distribution Expenses like Audit Fees Expenses, Advertisement & Business Promotion Expenses, Legal & Professional Expenses, Office Expenses, Rates & Taxes, Rent Expenses, Repair & Maintenance Expenses, Stationery and Printing Expenses, Travelling & Conveyance Expenses and Other Expenses.

Major components of other expenses were Custom Duty, Anti-Dumping & Safeguard Duties amounts to ? 247.80 Lakhs, Freight and Transportation Expenses amounts to ? 137.58 Lakhs and Installation & Commissioning Service Expenses amounts to ? 681.58 Lakhs. Which increased on account of Increase in revenue from operation during the financial year 2023-24.

Profit before Tax (PBT)

Profit before Tax (PBT) increased by 584.31% for the FY 2023-24 to ? 2,083.66 lakhs as compared to ? 304.49 lakhs during the FY 2022-23. The significant increase in PBT, from 3.08% of total income in FY 22-23 to 11.72% of total income in FY 2024, is largely attributed to increase in revenue from turnkey solutions. The revenue from turnkey solutions increased from ? 4,235.94 Lakhs in FY 2022-23 to ? 10,657.00 Lakhs in FY 2023-24.

Tax Expenses

The current tax expense has increased significantly to ? 524.69 lakhs in FY 2023-24 from ? 130.63 in FY 202223. This is primarily because the Profit before Tax (PBT) has increased substantially from ? 304.49 Lakhs in FY 2022-23 to ? 2,083.66 Lakhs in FY 2023-24. A higher profit before tax resulted in a higher tax liability.

Profit after Tax (PAT)

For the FY 2023-24, Profit after Tax (PAT) surged by 796.68%, reaching ? 1,558.97 lakhs compared to ?173.86 lakhs in FY 2022-23. This substantial increase in PAT is primarily due to a rise in revenue from operations, with a notable contribution from turnkey solution segment, which outpaced the growth in revenue from sales of products.

Specifically, the share of Government tender business within turnkey solutions segment grew from 4.70% of total sales in FY 2022-23 to 33.53% in FY 2023-24. The higher profit margins associated with turnkey solutions projects especially in government projects, compared to product sales, significantly contributed to this overall increase in profitability.

COMPARISON OF FINANCIAL YEAR 2022-23 WITH FINANCIAL YEAR 2021-22:

TOTAL INCOME:

Our total income decreased by 41.08% from ? 16,788.87 Lakhs in FY 2021-22 to ? 9,892.50 Lakhs in FY 202223, primarily due to a decrease in our revenue from operations and other income as discussed below:

Revenue from operations

Revenue from operations comprises of revenue from i) Residential rooftop projects; ii) Commercial and Industrial ("C&I") roof top and Ground Mounted projects; iii) Government Projects and iv) Revenue from Sales of products which are Solar PV Inverters, Availability Based Tariff (ABT) Meters, Solar PV (Photovoltaic) Modules and Other Solar Products. The total revenue from operations decreased by 40.97% from ? 16,736.91 Lakhs in FY 2021-22 to ? 9,878.98 Lakhs in FY 2022-23.

This decline was mainly result of decreased revenue from Sale of products specifically for sale of Solar modules. In FY 2022-23, we were engaged in the captive consumption of solar modules under turnkey solution segment produced by our then active manufacturing facility as well as direct supply of imported and domestically purchased solar modules. The decrease in sale of supply of solar modules is due to change in policy for the import of solar modules. Ministry ofNew & Renewable Energy vide its office memorandum dated March 09, 2021 increased the based custom duty (BCD) on Solar PV cells from 0% to 25% and for Solar modules from 0% to 40%, w.e.f. April 01, 2022. This policy change led to an immediate surge in module costs, which adversely impacted our purchasing and, consequently, our revenue. As a result, revenue from panel sales decreased from ?9,756.86 lakhs in FY 2021-22 to ?3,027.72 lakhs in FY 2022-23.

Further, Revenue from Commercial, Industrial & Ground Mounted Projects decreased from ? 2,697.06 lakhs in FY 2021-22 to ? 677.15 Lakhs in FY 2022-23. Our company has worked on Ground Mounted Project in FY 202122 which was high in value. However, no such projects was completed in FY 2022-23, which resulted in decreasing trend in revenue from Commercial, Industrial & Ground Mounted Projects.

Product-Wise Revenue Bifurcation:

Particulars	For the Financial Year ended as on
	March 31, 2023		March 31, 2022
	Amount (? In Lakhs)	% of total revenue	Amount (? In Lakhs)	% of total revenue
• Revenue From Turnkey Solutions
Residential Rooftop Projects	3,094.18	31.32	2,478.93	14.81
Commercial, Industrial & Ground Mounted Projects	677.15	6.85	2,697.06	16.11
Government Projects	464.61	4.70	-	-
• Revenue from Sales of Products
Solar PV Inverters	2,114.81	21.41	-	-
Availability Based Tariff (ABT) Meters	162.15	1.64	-	-
Solar PV (Photovoltaic) Modules	3,027.72	30.65	9,756.86	58.30
Other Solar Products	338.36	3.43	1,804.06	10.78
Total	9,878.98	100.00	16,736.91	100.00

State-wise Revenue from operations:

Particulars	For the Financial Year ended as on
	March 31, 2023		March 31, 2022
	Amount (? in Lakhs)	% of total revenue	Amount (? in Lakhs)	% of total revenue
Gujarat	7,416.31	75.07	12,198.35	72.88
Delhi	12.56	0.13	-	-
Maharashtra	634.62	6.42	3,600.20	21.51
Rajasthan	1,059.00	10.72	338.16	2.02
Karnataka	10.37	0.10	-	-
Tamil Nadu	8.66	0.09	1.40	0.01
West Bengal	10.69	0.11	214.49	1.28
Others	726.76	7.36	384.32	2.30
Total	9878.98	100.00	16,736.91	100.00

Other Income:

Other income includes Interest income on FDR, Discount, Rate Difference & Written Off Balances, Exchange Rate Fluctuations and Other Income Other income of the company decreased from ? 51.96 Lakhs in FY 2021 -22 to ? 13.52 Lakhs for FY 2022-23. Discount, Rate Difference & Written Off Balances and Exchange Rate Fluctuations the main constituents of the Other Income for the year FY 2021-22. In FY 2021-22 expense of Exchange Rate Fluctuations was ? 23.42 lakhs as compared to Nil in FY 2022-23.

EXPENDITURE:

Our total expenses decreased by 41.72% from ? 16,451.07 Lakhs in FY 2021-22 to ? 9,588.01 Lakhs in FY 202223. The reasons for change are discussed below:

Cost of Materials consumed

The cost of material consumed decreased by 45.10% from ? 14,423.08 lakhs in FY 2021-22 to ? 7,917.58 lakhs in FY 2022-23. Raw materials like solar invertor, solar module, solar controller, mounting structure, earthing materials like earthing cables, earthing rod, earthing bag Packing Material, Stores & Consumables are required to install solar systems. Cost of Materials consumed decreased on account decreased Purchases of Raw Materials during the FY 2022-23 in line with the decrease of revenue from operations.

Cost of Materials consumed amounted to 80.04% of total income in FY 2022-23 as compared to 85.91% of total income in 2023-24. The decrease in cost of material consumed is due to decreased purchase of imported and domestic solar modules for the purpose of direct supply as well as consumption for our turnkey solutions. As there was increase in import duty w.e.f. April 01, 2022 for solar cells as well as solar modules, the supply of the same was heavily disrupted resulting into decreased sales and cost of materials consumed.

Changes in Inventories of Finished Goods

Changes in Inventories of Finished Goods increased from ? (172.73) lakhs in FY 2021-22 to ? (43.56) lakhs in FY 2022-23 as a result of high value of opening stock in FY 2022-23 amounts to ? 394.84 Lakhs compared to ? 222.11 Lakhs in FY 2021-22.

Employee Benefit Expenses

Employee benefit expenses increased from ? 300.07 lakhs in FY 2021-22 to ? 349.28 lakhs in FY 2022-23. This increase of 16.40% is attributable to increase in number of employees from 86 employees on March 31, 2022 to 103 employees on March 31, 2023.

Finance Cost

Finance costs rose from ?77.98 lakhs in FY 2021-22 to ?143.03 lakhs in FY 2022-23, reflecting an increase of 83.42% as our company has taken new cash credit in FY 2022-23.

Depreciation

Depreciation and amortization increased from ?97.85 lakhs in FY 2021-22 to ?163.08 lakhs in FY 2022-23. This is the result of high capital expenditure amounts to ? 242.64 Lakhs in FY 2022-23.

Other Expenses

Other expenses decreased from ? 1,724.82 lakhs in FY 2021-22 to ? 1,058.60 lakhs in FY 2022-23 i.e a decrease by 38.63%. Other Expenses includes Manufacturing Expenses like Custom Duty, Anti-Dumping & Safeguard Duties, Other Import Charges, Freight & Transport Expenses, Installation & Commissioning Service Expenses and Other Expenses; Administrative & Selling & Distribution Expenses like Audit Fees Expenses, Advertisement & Business Promotion Expenses, Legal & Professional Expenses, Office Expenses, Rates & Taxes, Rent Expenses, Repair & Maintenance Expenses, Stationery and Printing Expenses, Travelling & Conveyance Expenses and Other Expenses. The decrease was mainly due to Installation & Commissioning Service Expenses, which decreased from ? 1,109.71 lakhs in FY 2021-22 to ? 411.52 Lakhs in FY 2022-23. This decline was a result of decreased revenue from commercial, industrial, and ground-mounted projects.

Profit before Tax (PBT)

Profit before Tax (PBT) decreased by 9.86%% for the FY 2022-23 to ? 304.49 lakhs as compared to ? 337.80 lakhs during the FY 2021 -22. The significant decrease in PBT, from 2.01% of total income in FY 21 -22 to 3.08% of total income in FY 2022-23, is largely attributed to decrease in revenue from sales of product. The revenue from sales of product decreased from ? 11,560.92 Lakhs in FY 2021-22 to ? 5,643.04 Lakhs in FY 2022-23.

Tax Expenses

The total tax expense has decreased from ? 132.76 lakhs in FY 2021-22 to ? 130.63 in FY 2022-23. This is primarily because the Profit before Tax (PBT) has decreased from ? 337.80 Lakhs in FY 2021-22 to ? 304.49 Lakhs in FY 2022-23.

Profit after Tax (PAT)

For the FY 2022-23, the companys Profit after Tax (PAT) decreased by 15.21% from ? 205.04 lakhs in the FY 2021-22 to ? 173.86 lakhs in FY 2023-22. This decline in PAT is largely attributed to a reduction in revenue from operations.

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:

in Lakhs)

Particulars	For the Financial Year ended as on
	March 31, 2024	March 31, 2023	March 31, 2022
Net cash flows generated/ (used) from operating activities	(20.38)	(386.84)	570.07
Net cash flows generated/ (used in) investing activities	(344.56)	(428.90)	(248.10)
Net cash flows generated/ (used in)/generated from financing activities	163.08	1,049.20	(403.08)
Net increase/(decrease) in cash and cash equivalents	(201.86)	233.46	(81.11)

Operating activities:

For the Year Ended March 31, 2024, net cash used in operating activities was ? (20.38) Lakhs. This comprised of the profit before tax of ? 2,083.66 Lakhs, which was primarily adjusted for depreciation and amortization expenses of ? 129.35 Lakhs, finance cost of ? 241.05 Lakhs and Interest Income of ? 4.21 lakhs. The resultant operating profit before working capital changes was ? 2,449.85 Lakhs, which was primarily adjusted for an increase in inventories amounting to ? 1,072.61 Lakhs, trade receivables of ? 2,426.81 Lakhs, Loans and Advances of ? 2.25 Lakhs and decrease in other assets ? 235.39 Lakhs, increase in trade payables & other current Liabilities of ? 453.58 Lakhs and ? 437.75 Lakhs respectively, increase in long term provisions & short term provisions of ? 5.90 Lakhs and ? 441.38 Lakhs respectively and income tax paid of ? 542.56 Lakhs.

For Financial Year 2022-23, net cash used in operating activities was ? (386.84) Lakhs. This comprised of the profit before tax of ? 304.49 Lakhs, which was primarily adjusted for depreciation and amortization expenses of ? 163.08 Lakhs, finance cost of ? 143.03 Lakhs, Interest Income of ? 4.61 lakhs and Prior Period Taxes/ adjustments of ? 6.10 lakhs. The resultant operating profit before working capital changes was ? 599.89 Lakhs, which was primarily adjusted for an increase in inventories, trade receivables & other assets of ? 413.14 Lakhs, ?

101.35 Lakhs and ? 262.70 Lakhs respectively, decrease in Loans and Advances of 24.37 and decrease in trade payables of ? 79.55 Lakhs, decrease in other current liabilities of ? 32.57 Lakhs, decrease in short term provisions of ? 21.33 Lakhs and increase in long term provisions of ? 0.92 Lakhs respectively and income tax paid of ? 101.38 Lakhs.

For Financial Year 2021-22, net cash generated in operating activities was ? 570.07 Lakhs. This comprised of the profit before tax of ? 337.80 Lakhs, which was primarily adjusted for depreciation and amortization expenses of ? 97.85 Lakhs, finance cost of ? 77.98 Lakhs and Interest Income of ? 3.45 lakhs. The resultant operating profit before working capital changes was ? 510.18 Lakhs, which was primarily adjusted for an increase in Inventory of ? 256.05 Lakhs, decrease in trade receivables & loans and advances of ? 716.67 Lakhs and ? 133.22 Lakhs respectively and increase in other current assets of ? 352.34 Lakhs, increase in trade payables of ? 765.31 Lakhs and decrease in other current Liabilities of ? 853.50 Lakhs, increase in long term provision & short term provision of ? 3.52 Lakhs and ? 25.94 Lakhs respectively and income tax paid of ? 122.88 Lakhs.

Investing Activities

For the Year Ended March 31, 2024, net cash used in investing activities was ? 344.56 Lakhs, which primarily comprised of cash used for the purchase of fixed assets of ? 58.35 Lakhs, proceeds from interest income of ? 4.21 Lakhs and an increase in Long Term Loans & Advances of ? 290.42 Lakhs.

For Financial Year 2022-23, net cash used in investing activities was ? 428.90 Lakhs, which primarily comprised of cash used for the purchase of fixed assets of ? 242.64 Lakhs, proceeds from interest income of ? 4.61 Lakhs and an increase in Long Term Loans & Advances of ? 190.87 Lakhs.

For Financial Year 2021-22, net cash used in investing activities was ? 248.10 Lakhs, which primarily comprised of cash used for the purchase of fixed assets of ? 42.03 Lakhs, proceeds from interest income of ? 3.45 Lakhs and an increase in Long Term Loans & Advances of ? 209.52 Lakhs.

Financing activities

For the Year Ended March 31, 2023, net cash generated from financing activities was ? 163.08 Lakhs, which predominantly comprised increased borrowings of ? 404.13 Lakhs and finance cost paid of ? 241.05 Lakhs.

For Financial Year 2022-23, net cash generated from financing activities was ? 1049.20 Lakhs, which predominantly comprised increased borrowings of ? 1192.23 Lakhs, and finance cost paid of ? 143.03 Lakhs.

For Financial Year 2021-22, net cash used in financing activities was ? 403.08 Lakhs, which predominantly comprised decreased in borrowings of ? 325.10 Lakhs and finance cost paid of ? 77.98 Lakhs.

INDEBTNESS

As of March 31, 2024, we had total outstanding indebtedness of ? 3,076.35 Lakhs, which comprises of long-term borrowings amounting to ? 809.08 Lakhs and short-term borrowings of ? 2,267.27 Lakhs. The following table sets out our indebtedness as of March 31, 2024, 2023 and 2022.

(Z in Lakhs)

Particulars	For the Financial Year Ended on
	March 31, 2024	March 31, 2023	March 31, 2022
Long term borrowing (excluding current maturity)
Secured:
From Banks	58.38	345.38	11.75
Unsecured:
From Loans from Promoters/ Directors/ Promoters Group/ Associates/ Relative of Directors/ Group Companies	738.12	827.07	764.78
From Others	12.58	72.08	10.03
Sub Total (A)	809.08	1,244.53	786.56
Short term borrowings
Secured:
From Banks	2,141.47	1,282.40	250.14
Current Maturities of Long Term Debt	125.80	145.29	443.29
Sub Total (B)	2,267.27	1,427.69	693.43

CAPITAL EXPENDITURE IN LAST THREE YEARS

Particulars	For the Financial Year Ended on
	March 31, 2024	March 31, 2023	March 31, 2022
Total(A+B)	3,076.35	2,672.22	1,479.99

Our net capital expenditures include expenditures on tangible assets which primarily include Land, Building, plant & machinery, Electrical Equipment, Other Office Assets, Furniture & Fittings, Computer & Softwares and vehicles.

The following table sets out our net capital expenditures for the financial year ended March 31, 2024, 2023 and 2022:

in Lakhs)

Particulars	For the Financial Year ended
	March 31, 2024	March 31, 2023	March 31, 2022
Property Plant & Equipment
Tangible Assets
Land	-	26.58	-
Factory Building	-	1.19	19.24
Plant & Machinery	-	-	1.80
Electrical Equipments	4.45	13.71	5.41
Other Office Assets	-	175.93
Furniture & Fittings	-	13.52	9.84
Computer & Softwares	7.11	5.40	5.34
Vehicles	46.79	6.31	0.40
Total	58.35	242.64	42.03

RELATED PARTY TRANSACTIONS

For further information please refer "Annexure- J(ii) - Related Party Disclosure" under section "Restated Financial Information" beginning from page no. 198 of this Draft Red Herring Prospectus.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

In the course of undertaking our business, we are exposed to the following risks arising from financial instruments, which include credit risk, liquidity risk and market risk. Our primary focus is to achieve better predictability of financial markets and seek to minimize potential adverse effects on our financial performance.

Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or fail to pay amounts due causing financial loss. The potential activities where credit risks may arise include from security deposits with bank, trade receivables, loans and advances and other financial assets. The maximum credit exposure associated with financial assets is equal to the carrying amount.

Our exposure to credit risk is influenced mainly by the individual characteristics of each customer and the geography in which it operates. Credit risk is managed through credit approvals, establishing credit limits, and continuously monitoring the creditworthiness of customers to which our Company grants credit terms in the normal course of business.

Liquidity Risk

Liquidity risk is the risk that we will encounter difficulty in meeting the obligations associated with its financial liabilities that are proposed to be settled by delivering cash or other financial asset. Our financial planning has ensured, as far as possible, that there is sufficient liquidity to meet the liabilities whenever due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to our reputation. We have practiced financial diligence and syndicated adequate liquidity in all business scenarios.

Market Risk

Market risk is the risk that results in changes in market prices, such as foreign exchange rates, interest rates and other price like equity prices, which will affect our income or the value of our holdings of financial instruments.

The foreign currency risk may affect our income and expenses, or our financial position and cash flows. The objective of our management of foreign currency risk is to maintain this risk within acceptable parameters, while optimizing returns.

Our Companys interest rate exposure is mainly related to debt obligations outstanding.

EFFECT OF INFLATION

We are affected by inflation as it has an impact on the material cost, wages, etc. In line with changing inflation rates, we rework our margins so as to absorb the inflationary impact.

INFORMATION REQUIRED AS PER ITEM (11) (II) (C) (iv) OF PART A OF SCHEDULE VI TO THE SEBI REGULATIONS, 2018:

1. Unusual or infrequent events or transactions

Except as described in this Draft Red Herring Prospectus, there have been no other events or transactions to the best of our knowledge which may be described as "unusual" or "infrequent".

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

Our business has been subject, and we expect it to continue to be subject to significant economic changes arising from the trends identified above in ‘Factors Affecting our Results of Operations and the uncertainties described in the section entitled "Risk Factors" beginning on page no. 31. To our knowledge, except as we have described in the Draft Red Herring Prospectus, there are no known factors which we expect to bring about significant economic changes.

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 titled "Risk Factors" beginning on page no. 31, 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, in case of events such as future increase in labour or material costs or prices that will cause a material change are known.

Apart from the risks as disclosed under Section titled "Risk Factors" beginning on page no. 31, there are no known factors that may adversely affect our business prospects, results of operations and financial condition.

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

Our company provides Turnkey Solutions which involves design, engineering, procurement & supply, construction & erection, testing, commissioning, associated transmission system and comprehensive Operation & Maintenance ("O&M"). We serve a wide range of projects, including Residential rooftop projects, Commercial and Industrial ("C&I") roof top and Ground Mounted projects, as well as Government Projects. Along with our turnkey solutions, we are also involved in Sale of Solar Products i.e. Solar PV (Photovoltaic) Modules, Solar PV Inverters, Availability Based Tariff Meters ("ABT") and other solar products. Revenue from operations comprises of revenue from i) Residential rooftop projects; ii) Commercial and Industrial ("C&I") roof top and Ground Mounted projects; iii) Government Projects and iv) Revenue from Sales of products which are Solar PV Inverters, Availability Based Tariff (ABT) Meters, Solar PV (Photovoltaic) Modules and Other Solar Products. Increases in revenues are by and large linked to increase in revenue from government projects and also dependent on the price realization.

6. Total turnover of each major industry segment in which the issuer company operated.

We operate in only one major segment.

7. Status of any publicly announced new products or business segment.

Otherwise as stated in the Draft Red Herring Prospectus and in the section "Business Overview" appearing on page no. 126, our company has not publicly announced any new business segment till the date of this Draft Red Herring Prospectus.

8. The extent to which business is seasonal.

Our company provides Turnkey Solutions which involves design, engineering, procurement & supply, construction & erection, testing, commissioning, associated transmission system and comprehensive Operation &

Maintenance ("O&M"). We serve a wide range of projects, including Residential rooftop projects, Commercial and Industrial ("C&I") roof top and Ground Mounted projects, as well as Government Projects. Along with our turnkey solutions, we are also involved in Sale of Solar Products i.e. Solar PV (Photovoltaic) Modules, Solar PV Inverters, Availability Based Tariff Meters ("ABT") and other solar products. Revenue from operations comprises of revenue from i) Residential rooftop projects; ii) Commercial and Industrial ("C&I") roof top and Ground Mounted projects; iii) Government Projects and iv) Revenue from Sales of products which are Solar PV Inverters, Availability Based Tariff (ABT) Meters, Solar PV (Photovoltaic) Modules and Other Solar Products.

To the extent, our business is not seasonal as we frequently bid for various government projects as well as generate leads for Residential rooftop projects, Commercial and Industrial ("C&I") roof top and Ground Mounted projects.

However, for the purpose of execution of our projects, our business may affect during monsoon season due to various challenges which may result in Project delays, reduced efficiency and operational challenges.

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

The percentage of contribution of our Companys customer vis-a-vis the total revenue from operations respectively for the year ended on March 31, 2024, March 31, 2023 and March 31, 2022 is as follows:

Particulars	Contribution to revenue from operations For the Financial Year ended as on
	March 31, 2024	March 31, 2023	March 31, 2022
Top 1 Customer	21.02%	5.67%	14.62%
Top 3 Customers	28.78%	12.66%	24.45%
Top 5 Customers	33.10%	17.39%	31.43%
Top 10 Customers	41.01%	25.98%	39.71%

The percentage of contribution of our Companys supplier vis-a-vis the total purchase respectively for the year ended on March 31, 2024, March 31, 2023 and March 31, 2022 is as follows:

Particulars	Contribution to Purchases For the Financial Year ended as on
	March 31, 2024	March 31, 2023	March 31, 2022
Top 1 Supplier	15.78%	15.29%	42.23%
Top 3 Suppliers	35.88%	38.48%	58.41%
Top 5 Suppliers	44.14%	49.23%	64.33%
Top 10 Suppliers	58.10%	62.67%	75.11%

10. Competitive conditions:

We face competition from existing and potential competitors which is common for any business. We have, over a period, developed certain competitors who have been discussed in section titles "Business Overview" beginning on page no. 126 of this Draft Red Herring Prospectus.