Solve Plastic Products Ltd Management Discussions

You should read the following discussion of our financial condition and results of operations together with our restated financial statements for the financial year ended on 31st March 2024, 31st March 2023 and 31st March 2022 including the notes and significant accounting policies thereto and the reports thereon, which appear elsewhere in this prospectus. You should also see the section titled "Risk Factors" beginning on page 21 of this prospectus, 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 audited financial statements.

These financial statements have been prepared in accordance with Ind GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditors dated August 01, 2024 which is included in this prospectus under the section titled "Financial Information as Restated" beginning on page 181 of this 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.

This discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those described under "Risk Factors" and "Forward Looking Statements" beginning on pages 21 and 15 respectively, and elsewhere in this prospectus

Accordingly, the degree to which the financial statements in this prospectus will provide meaningful information depends entirely on such potential investors level of familiarity with Indian accounting practices. Our F.Y. 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. Please also refer to section titled "Certain Conventions, Use of Financial, Industry and Market Data and Currency Presentation" beginning on page 13 of this prospectus.

BUSINESS OVERVIEW

Our Company was originally incorporated as Private Limited Company in the name of "Solve Plastic Products Private Limited" on October 04, 1994 under the provisions of the Companies Act, 1956 bearing Registration No. 09-08231 issued by Registrar of Companies, Kerala. Subsequently, our company was converted into Public Limited Company under the Companies Act, 2013 and the name of our Company was changed to "Solve Plastic Products Limited" vide a fresh Certificate of Incorporation dated March 05, 2024 bearing Corporate Identification Number U25209KL1994PLC008231 issued by Registrar of Companies Central Processing Centre.

Our Company is an ISO 9001:2015 and Bureau of Indian Standards IS 4985:2021, 3419:1988, 9537:Part 3:1983 certified company engaged in manufacturing of comprehensive range of uPVC (Unplasticized Polyvinyl Chloride) Pipes and Rigid PVC Electrical Conduits. Our Company is committed towards constant innovations in drinking water piping solutions and electrical conduit fittings technologies to meet the constantly increasing demands.

Our company has 3 (three) well-equipped manufacturing facility at Kerala and 1 (one) well-equipped manufacturing facility at Tamil Nadu. It has the latest technology and equipment that helps in the production of high-quality uPVC pipes and Electrical Conduits of different sizes. Our manufacturing facilities is fully automated. The company also has a well-trained team of engineers, technicians and operators that helps in the production and quality control of the products. The details of our manufacturing facilities as hereunder:

State	Location	Products Manufactured
	Unit 1:	Rigid PVC Electrical Conduits
	PMC/XIII/690, Punalur, Tholikode P.O., Kollam 691333, Kerala, India
	Unit 2:	uPVC Pipes
Kerala	TP/XIII/707&708, Papannoor Road, Edamon, Kollam 691307, Kerala, India
	Unit 3:	uPVC Pipes
	14/414E, Kooveri, Nadukani, Kannur - 670142, Kerala, India
Tamil Nadu	Unit 4:	Rigid PVC Electrical Conduits
	3/12/82 & 83, Karkuddy, Therkkumedu, Kesavapuram, Shencottah, Tirunelveli 627813, Tamil Nadu, India

Considering the growing demand of Rigid PVC Electrical Conduits in the regional markets, the company is proposing to enhance the plant capacity of Electrical Conduits from 2760 MT (27,60,000 Kgs) Per Annum to 4860 MT (48,60,000 Kgs) Per Annum situated at our existing facility situated at Unit 4 i.e. 3/12/82 & 83, Karkuddy, Therkkumedu, Kesavapuram, Shencottah, Tirunelveli 627813, Tamil Nadu. Also seeing the demand of HDPE Pipes, the company is proposing to augment its product portfolio by implementing manufacturing facility of HDPE Pipes of 2160 MT (21,60,000 Kgs) per Annum at our existing manufacturing facility situated at Unit 2 i.e. TP/XIII/707&708, Papannoor Road, Edamon, Kollam 691307, Kerala, India. The overall Project cost for the proposed expansion project has been estimated at 552.64 lakhs.

Our Company markets its products under the brand name of "BALCOPIPES", through its network of Authorized Dealers/Distributors. As on the date of this Prospectus, our Company has 260 Authorized Dealers/Distributors present across 3 (three) states i.e. Kerala, Karnataka and Tamil Nadu.

The products manufactured are approved by various agencies such as the Bureau of Indian Standards (BIS) and also from organisations i.e. Central Public Works Department (CPWD) of Chennai & Kochi, Military Engineer Services (MES), Integral Coach Factory, Public Works Department (PWD) of Kerala and Tamil Nadu and Tamil Nadu Housing Board. We are registered vendor with government organizations such as Chennai Port Authority and Southern Railway. In the year 2024, our company has received letter of appreciation for the exceptional achievement of securing Zero Failure (Zero Failure License Achievement) for the last 3 operative years from Bureau of Indian Standards (BIS) for the CM/L 4594681 according to IS 9537:PART 3:1983 for the product Conduits for electrical installations: part 3 rigid plain conduits of insulating materials and in the year 2022, our company has received Certificate of Appreciation from Bureau of Indian Standards in recognition of dedication to quality and association with BIS for more than 25 years.

Our Company has always strived to provide its clients with the best uPVC pipes and electrical conduits in the market. With the help of the latest technology and equipment, the company has been able to produce high-quality uPVC pipes and electrical conduits that are not only durable but also affordable.

Our company is a quality oriented and innovative company with a wide, comprehensive and cost effective range of uPVC pipes and electrical conduits. We continuously aim at growing our product range to meet the needs of a growing India. We are committed towards constant innovations in drinking water piping solutions and electrical conduit fittings to meet the constantly increasing demands. Our vision is to prioritized the use of materials that are mostly non-hazardous to the environment, to reduce wastage, zeroize the use of lead in our product & the ethical disposal of waste materials. At Balco Pipes, we have 4 (four) manufacturing facilities, equipped with advanced R&D Lab, dedicated towards providing superior quality products. Solve Plastic Products Pipes has been successfully manufacturing and marketing its products under the brand name "Balco Pipes" and is well known for its commitment to quality and service.

We believe in qualitative production matching the customer requirements, timely deliverables and cost efficiency and have thereby developed a long-continuing relationship with our customers. With the experience of our Promoters, technological drive, continuous research, supplier and customer relationships, government support and industry demand for uPVC pipes and rigid electrical conduit fittings, our Company serves the products majorly across the state of Kerala and Tamil Nadu and has plans to expand its presence on PAN India basis.

Mr. Sudheer Kumar Balakrishnan Nair is Managing Director and also the Promoter of our Company. He holds degree of Bachelor of Technology (Civil) from Kerala University. He possesses experience of more than 35 years in the production and manufacturing related activities of Companys business. He has been instrumental in the growth of our business and actively advise us on finance, corporate strategy and planning. Further, our board of directors are supported by a team of well experienced and qualified personnel. We believe that our management teams experience and their understanding of this industry, specifically in the finance and manufacturing, industry will enable us to continue to take advantage of both current and future market opportunities.

Product Portfolio:

Manufacturing (Own Facility): Rigid PVC Electric Conduits, uPVC Pipes, Fittings & Accessories (Bend)

Manufacturing (Outsourcing): Fittings & Accessories, Solvent Cement, Water Tanks, Garden Hoses

OUR OPERATIONAL PRESENCE

Registered Office: Door No XIII/690/ABC, Tholicode, Punalur, Kollam, Kerala- 691333, India.

Corporate Office: 2nd Floor, BALCO Building, XXIX/456, Powerhouse Ward, Tholicode, Pathanapuram, Kollam, Kerala - 691333, India

Manufacturing Facility: o PMC/XIII/690, Punalur, Tholikode P.O., Kollam 691333, Kerala, India o TP/XIII/707&708, Papannoor Road, Edamon, Kollam 691307, Kerala, India o 14/414E, Kooveri, Nadukani, Kannur - 670142, Kerala, India o 3/12/82 & 83, Karkuddy, Therkkumedu, Kesavapuram, Shencottah, Tirunelveli 627813, Tamil Nadu, India

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 i.e. March 31, 2024 as disclosed in this prospectus, there have not arisen any circumstance 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 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 March 09, 2024 proposed the Issue, subject to the approval of the shareholders and such other authorities as may be necessary.

2. The shareholders of the Company have, pursuant to Section 62(1)(c) of the Companies Act 2013, by a special resolution passed in the Extra Ordinary General Meeting held on March 12, 2024 authorized the Initial Public Offer.

KEY FACTORS AFFECTING OUR RESULTS OF OPERATION

1. Covid-19 pandemic.

2. Our dependence on limited number of customers/suppliers/brands for a significant portion of our revenues;

3. Any failure to comply with the financial and restrictive covenants under our financing arrangements;

4. Our ability to retain and hire key employees or maintain good relations with our workforce;

5. Impact of any reduction in sales of our services/products;

6. Rapid Technological advancement and inability to keep pace with the change;

7. Increased competition in industries/sector in which we operate;

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

9. Changes in laws and regulations relating to the Sectors in which we operate;

10. Political instability or changes in the Government in India or in the government of the states where we operate could cause us significant adverse effects;

11. Failure to obtain any applicable approvals, licenses, registrations and permits in a timely manner;

12. Occurrence of natural or man-made disasters could adversely affect our results of operations and financial condition and

13. Our inability to successfully diversify our product offerings may adversely affect our growth and negatively impact our profitability.

SIGNIFICANT ACCOUNTING POLICIES:

Our significant accounting policies are described in the section entitled "Financial Statements as Restated" beginning from page no. 181 of the prospectus.

SUMMARY OF THE RESULTS OF OPERATION:

The following table sets forth select financial data from restated profit and loss accounts for the financial years ended on 31st March 2024, 31st March 2023 and 31st March 2022 and the components of which are also expressed as a percentage of total income for such periods.

Rs. in lakhs

	For the Year ended on (Rs. In lakhs)
Particulars	31-03-2024	% of Total Turnover	31-03-2023	% of Total Turnover	31-03-2022	% of Total Turnover
Income
Revenue from Operations	4,619.13	97.95%	6,077.17	97.62%	5,506.51	98.72%
Other Income	96.60	2.05%	148.26	2.38%	71.38	1.28%
Total Income	4,715.73	100.00%	6,225.43	100.00%	5,577.89	100.00%
Expenditure
Cost of Material Consumed	3,063.35	64.96%	4,489.05	72.11%	4,325.61	77.55%
Purchase of Stock-in-Trade	-	0.00%	-	0.00%	-	0.00%
Change in Inventories	(24.21)	-0.51%	(38.04)	-0.61%	55.32	0.99%
Employee Benefit Expenses	492.99	10.45%	464.90	7.47%	375.38	6.73%
Other Expenses	817.45	17.33%	964.97	15.50%	641.69	11.50%
Total Expenses	4,349.58	92.24%	5,880.88	94.47%	5,398.00	96.77%
Profit Before Interest, Depreciation and Tax	366.15	7.76%	344.55	5.53%	179.89	3.23%
Depreciation & Amortisation Expenses	77.06	1.63%	82.70	1.33%	90.06	1.61%
Profit Before Interest and Tax	289.09	6.13%	261.85	4.21%	89.83	1.61%
Financial Charges	144.43	3.06%	138.27	2.22%	142.74	2.56%
Profit before Taxation	144.66	3.07%	123.58	1.99%	(52.91)	-0.95%
Provision for Taxation	-	0.00%	-		-
Provision for Deferred Tax	2.18	0.05%	3.31	0.05%	(12.20)	-0.22%
Total	2.18	0.05%	3.31	0.05%	(12.20)	-0.22%
Profit After Tax but Before Extra ordinary Items	142.48	3.02%	120.27	1.93%	(40.71)	-0.73%
Extraordinary Items			-		-
Profit Attributable to Minority Shareholders			-		-
Net Profit after adjustments	142.48	3.02%	120.27	1.93%	(40.71)	-0.73%
Net Profit Transferred to Balance Sheet	142.48	3.02%	120.27	1.93%	(40.71)	-0.73%

MAIN COMPONENTS OF PROFIT AND LOSS ACCOUNT

Income

Our total income comprises of Revenue from Operations and Other Income

Revenue from Operations

Our revenue from operations comprises of Sale from Manufacturing Activities

Other Income

Our other income comprises of Interest income, Discount received, Miscellaneous income, Lease rent received, Profit on sale of fixed assets (Net), Insurance Claim Received, Sundry Creditors written back, Advance from Customers Written back Excess Provision written back

Expenditure

Our total expenditure primarily consists of Cost of Material Consumed, Change in Inventories, Employee Benefit Expenses, Depreciation & Amortisation Expenses, Financial Charges, Other Expenses

Cost of Material Consumed

Cost of materials consumed comprises of difference in opening and closing balance of stock, purchases.

Changes in Inventories

Change in Inventories comprises of difference in opening and closing balance of finished goods

Employee Benefit Expenses

Employee benefit expenses comprises of Directors Remuneration, Salaries, Wages & Bonus, PF Contributions, ESI Contributions, Provision for Gratuity, Staff welfare expenses

Financial Charges

Financial Charges comprises of Interest on Secured Loan, Processing Fee, Bank Charges, Interest-Others

Depreciation and Amortization Expenses

Depreciation and Amortization Expenses comprises of depreciation on the Tangible assets of our company i.e. Freehold land, Building, Computer & Accessories, Electrical installation, Furniture and Fittings, Mandrel, Office equipment, Plant & Machinery, Pulveriser, PVC Scrap Grinder, Vehicles, Software, Leasehold Premium

Other Expenses

Other expenses comprise of Direct Manufacturing Expenses i.e. Power and fuel, Factory expenses, Repairs to machinery, Contract Labour Charges, Job work charges, Total of Direct Manufacturing Expenses, Administrative & Other Expenses i.e. Repairs to buildings, Repairs to others, Advertisement charges, Carriage outwards, Discount allowed, Donation & charities, Insurance, Rates and taxes, excluding, taxes on income, Legal and professional, Travelling and conveyance, Printing and stationery, Remuneration to Auditors, Sitting fee to directors, Market development expenses, Office expenses, Other selling expenses, Postage, Telephone etc, Quality development programme, Service charges, Testing fee, Vehicle running expenses, Penalties & fines, Lease Rent, Membership Fees, Advances written off, Provision for Bad debts, Sundry Creditors Written Off, Miscellaneous expenses

Provision for Taxation

The provision for current tax is computed in accordance with relevant tax regulation. Deferred tax is recognized on timing differences between the accounting and the taxable income for the year and quantified using the tax rates and laws enacted or subsequently enacted as on balance sheet date. Deferred tax assets are recognized and carried forward to the extent that there is a virtual certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized in future.

COMPARISON OF THE FINANCIAL PERFORMANCE OF FISCAL 2024 WITH FISCAL 2023

Total Revenue

The total revenue for FY 2023-24 was decreased to 4715.73 Lakhs as against 6225.43 Lakhs in the FY 2022-23 primarily due to decrease in revenue from operations of the Company.

Revenue from Operations: The revenue from operations of the company for FY 2023-24 was decreased to 4619.13 Lakhs as against 6077.17 Lakhs in the FY 2022-23. This decrease was mainly due to the following reasons:

Reason for decrease in Turnover: Sales turnover has decreased by approx. 24% ((From 6077.17 lakhs in FY 2022-23 to 4619.13 lakhs in FY 2023-24). The decrease in sales is mainly due to decrease in volume by approx. 13% and also decrease in price by approx. 13%.

PVC Industry has faced lot of challenges during the year lacking demand. Prices of PVC Resin (Major raw material for PVC Pipes) has moved down to approx. 73/- per kg in October 2023 from the peak of approx. 142/- per kg in April 2022. Average purchase price of Resin stood at approx. 80/- per kg during the current year against approx. 99/- per kg for the previous year resulting a drop of approx. 19% in purchase price.

PVC Pipe and construction industry faced a slowdown in Indian market. PVC Pipe prices are governed by the price fluctuation of PVC resin and resultantly the prices of PVC pipes were also decreased. This caused a reduction in sales value. Even though the turnover has been dropped but we could maintain a better profitability compared to previous year.

PVC Resin Price Movement Chart

Other Income: The other income of the company for FY 2023-24 was decreased to 96.60 Lakhs as against 148.26 Lacs in the FY 2022-23. This decrease was mainly due to decrease in discount received.

Total Expenses

The total expenses (incl. Depreciation & Amortization Expenses and Financial Charges) for the FY 2023-24 was decreased to 4571.08 Lacs as against 6101.85 Lacs in the FY 2022-23. This decrease was mainly due to decrease in volume of operation during the FY as mentioned in revenue from operation above.

Cost of Material Consumed: The total Cost of Material Consumed for the FY 2023-24 was decreased to 3063.35 Lacs as against 4489.05 lacs in the FY 2022-23. This decrease was mainly due to decrease in price of raw material during the FY as mentioned in revenue from operation above.

Changes in Inventories: The Changes in Inventories for the FY 2023-24 was (24.21) Lakhs as against (38.04) Lakhs in the FY 2022-23. This was mainly due to increase in finished goods.

Employee Benefit Expenses: The Employee Benefit Expenses for the FY 2023-24 was increased to 492.99 Lakhs as against 464.90 in the FY 2022-23. This increase was mainly due to increase in salaries and bonus.

Financial Charges: The Financial Charges for the FY 2023-24 was increased to 144.43 Lakhs as against 138.27 Lakhs in the FY 2022-23. This increase was mainly due to increase in processing fees.

Other Expenses: The Other Expenses for the FY 2023-24 was decreased to 817.45 Lakhs as against 964.97 Lakhs in the FY 2022-23. This decrease was mainly due to decrease in volume of operation during the FY as mentioned in revenue from operation above.

Depreciation and Amortisation Expenses: The Depreciation and Amortisation expenses for FY 2023-24 was decreased to 77.06 Lakhs as against 82.70 Lakhs in the FY 2022-23. This decrease was mainly due to sale of plant and machinery.

Total Tax Expenses: The total tax expenses for FY 2023-24 was decreased to 2.18 Lakhs as against 3.31 Lakhs in the FY 2022-23. This decrease was mainly due to decrease in Profit before Tax

Profit/ (Loss) Before Tax: The restated Profit before Tax for FY 2023-24 was increased to 144.66 Lakhs as against 123.58 Lakhs in the FY 2022-23.

Profit/ (Loss) After Tax: The restated Profit after Tax for FY 2023-24 has been increased to 142.48 Lakhs as against 120.27 Lakhs in the FY 2022-23.

COMPARISON OF THE FINANCIAL PERFORMANCE OF FISCAL 2023 WITH FISCAL 2022

Total Revenue

The total revenue for FY 2022-23 was increased to 6225.43 Lakhs as against 5577.89 Lakhs in the FY 2021-22 primarily due to increase in revenue from operations of the Company.

Revenue from Operations: The revenue from operations of the company for FY 2022-23 was increased to 6077.17 Lakhs as against 5506.51 Lakhs in the FY 2021-22. This increase was mainly due to increase in sales of our products.

Other Income: The other income of the company for FY 2022-23 was increased to 148.26 Lakhs as against 71.38 Lacs in the FY 2021-22. This increase was mainly due to increase in discount received.

Total Expenses

The total expenses (incl. Depreciation & Amortization Expenses and Financial Charges) for the FY 2022-23 was increased to 6101.85 Lacs as against 5630.81 Lacs in the FY 2021-22. This increase was mainly due to increase in volume of operation during the FY as mentioned in revenue from operation above.

Cost of Material Consumed: The total Cost of Material Consumed for the FY 2022-23 was increased to 4489.05 Lacs as against 4325.61 lacs in the FY 2021-22. This increase was mainly due to increase in volume of operation during the FY as mentioned in revenue from operation above.

Changes in Inventories: The Changes in Inventories for the FY 2022-23 was (38.04) Lakhs as against 55.32 Lakhs in the FY 2021-22. This was mainly due to increase in finished goods.

Employee Benefit Expenses: The Employee Benefit Expenses for the FY 2022-23 was increased to 464.90 Lakhs as against 375.38 lakhs in the FY 2021-22. This increase was mainly due to increase in salaries and bonus.

Financial Charges: The Financial Charges for the FY 2022-23 was decreased to 138.27 Lakhs as against 142.74 Lakhs in the FY 2021-22. This decrease was mainly due to decrease in interest on secured loan.

Other Expenses: The Other Expenses for the FY 2022-23 was increased to 964.97 Lakhs as against 641.69 Lakhs in the FY 2021-22. This increase was mainly due to increase in volume of operation during the FY as mentioned in revenue from operation above.

Depreciation and Amortisation Expenses: The Depreciation and Amortisation expenses for FY 2022-23 was decreased to 82.70 Lakhs as against 90.06 Lakhs in the FY 2021-22. This decrease was mainly due to sale of plant and machinery.

Total Tax Expenses: The total tax expenses for FY 2022-23 was increased to 3.31 Lakhs as against (12.20) Lakhs in the FY 2021-22. This increase was mainly due to increase in Profit before Tax

Profit/ (Loss) Before Tax: The restated Profit before Tax for FY 2022-23 was increased to 123.58 Lakhs as against (52.91) Lakhs in the FY 2021-22. This increase was mainly due to increase in volume of operation.

Profit/ (Loss) After Tax: The restated Profit after Tax for FY 2022-23 has been increased to 120.27 Lakhs as against (40.71) Lakhs in the FY 2021-22. This increase was mainly due to increase in volume of operation.

Reason for Loss in FY 2021-22: The Company has incurred Profit before Tax (PBT) of (52.91) lakhs and Profit after Tax (PAT) of (40.71) during FY 2021-22. Major reasons for this loss are

The Company acquired a factory in KINFRA Park at Kannur in 2018-19 and set up Kannur plant during FY 2019-20 which went into full-fledged commercial operation in the year 2022-23 due to the pandemic situation of Covid-19. During the FY 2020-21 & FY 2021-22, the company incurred additional depreciation, interest cost and operational cost with respect to Kannur Factory against which revenue from said factory had not been generated.

During the above period, raw material (PVC Resin) prices were fluctuated exorbitantly. The company were not able to pass on the increase in raw material price to the market due to the frequent changes in PVC Resin price and competition pricing. This resulted in increased Raw Material Cost and lower margin.

Moreover, the pandemic Covid situation forced for shut downs and lower sales volume resulted in lower profitability.

AN ANALYSIS OF REASONS FOR THE CHANGES IN SIGNIFICANT ITEMS OF INCOME AND EXPENDITURE IS GIVEN HEREUNDER:

1. Unusual or infrequent events or transactions

Except as described in this 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.

There are no significant economic changes that may materially affect or likely to affect income from continuing operations. However, Government policies governing the sector in which we operate as well as the overall growth of the Indian economy has a significant bearing on our operations. Major changes in these factors can significantly impact 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 21 in the 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. Expected Future changes in relationship between costs and revenues

Our Companys future costs and revenues will be determined by demand/supply situation, Government Policies and Taxation and Currency fluctuations.

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

Changes in revenue in the last financial years are as explained in the part "Comparison of the Financial Performance" of above.

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

The Company is mainly engaged in manufacturing of uPVC Pipes and Rigid Electrical Conduits. Therefore, there are no separate reportable segments.

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

Our Company has not announced any new product other than disclosed in this prospectus.

8. Seasonality of business

Our business is not seasonal in nature.

9. Competitive conditions

Competitive conditions are as described under the Chapters "Industry Overview" and "Our Business" beginning on page 100 and 111 respectively of the prospectus.

10. Details of material developments after the date of last balance sheet i.e., March 31, 2024

Except as mentioned in this prospectus, no circumstances have arisen since the date of last financial statement until the date of filing the prospectus, which materially and adversely affect or are likely to affect the operations or profitability of our Company, or value of its assets, or its ability to pay its liability within next twelve months.