SpectraA Technology Solutions Ltd Management Discussions

The following discussion and analysis of our financial position and results of operations for the period ended September 30, 2025 and the financial years ended on March 31, 2025, March 31, 2024 and March 31, 2023 is based on, and should be read in conjunction with, our Restated Consolidated Financial Statements, including the schedules, notes and significant accounting policies thereto, included in the chapter titled "Restated Consolidated Financial Statements" beginning on page

237 of this Draft Red Herring Prospectus. Our Restated Consolidated Financial Statements have been derived from our Consolidated audited financial statements and restated in accordance with the SEBI ICDR Regulations and the ICAI Guidance Note.

You should read the following discussion of our financial position and results of operations together with our Restated Consolidated Financial Statements included in this Draft Red Herring Prospectus. You should also read the section titled "Risk Factors" beginning on page 27 of this Draft Red Herring Prospectus, which discusses a number of factors, risks and contingencies that could affect our financial condition and results of operations. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year are to the twelve-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we", "us" or "our" or "our Company" refers to

SpectraA Technology Solutions Ltd. Unless otherwise indicated, financial information included herein are based on our

"Restated Consolidated Financial Statements" for the period ended September 30, 2025 and for the financial years ended on

March 31, 2025, March 31, 2024 and March 31, 2023 included in this Draft Red Herring Prospectus beginning on page 237 of this Draft Red Herring Prospectus.

Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "Forward Looking Statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to our operations include, among others, economic conditions affecting demand/supply and price conditions in domestic and overseas market in which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental factors.

BUSINESS OVERVIEW

Our Company, SpectraA Technology Solutions Limited, was incorporated as a private company on January 29, 2009 in Bengaluru and converted to a public limited company on February 01, 2021. We provide engineering, designing, fabrication, installation, commissioning and decommissioning greenfield and brownfield projects across various industries which include, Breweries (Craft and Microbreweries), Distilleries, Food and Beverages, Malt Spirit and Blending, Extraction Plants, FMCG (Fast Moving Consumer Goods) and Pharmaceuticals. We undertake projects with full responsibility from design to handover, build key equipment in-house, use standardized modules and appropriate designs, and deploy project teams across client sites, which helps us deliver on schedule, cut rework, and control costs.

Over the last 16 years, we have built systems compliant with ISO 9001:2015 to design, develop, fabricate and expand various process plants which are customized to customer specifications. Our scope covers entire spectrum i.e., engineering, fabrication, installation, commissioning and decommissioning across various industries, which include, Breweries (Craft and Microbreweries), Distilleries, Food and Beverages, Malt Spirit and Blending, Extraction Plants, FMCG (Fast Moving Consumer Goods) and Pharmaceuticals. We also provide operator training and operations and maintenance (O&M) support.

We have two manufacturing facilities located at Bengaluru and Jaipur with an aggregate built up area of 33,214.75 square feet. We strengthen delivery reliability by dual-sourcing critical items and building local vendor bases around both hubs, aligning procurement with engineering and site schedules to support staged and split dispatches.

For further details, please refer chapter titled "Our Business w" beginning on page 163 of this Draft Red Herring Prospectus.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST AUDITED PERIOD i.e., SEPTEMBER 30, 2025

In the opinion of the Board of Directors of our Company, since the date of the last audited period in this Draft Red Herring

Prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months. However, following material events have occurred after the last audited period:

The Board and Shareholders of our Company has approved and allotted 89,70,352 Bonus Equity shares of Face Value of 10/- in the ratio of 8:1.

The Shareholders of our Company have approved and passed a resolution on January 23, 2026 for the increase in authorised capital of the Company to Rs. 1,500 lakhs.

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factors" beginning on page 27, of this Draft Red Herring Prospectus. Our Companys future results of operations could be affected potentially by the following factors:

1. We derive a significant portion of our revenue from top 10 customers. The loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for our products could adversely affect our business, results of operations, financial condition and cash flows.

2. We depend on a limited number of suppliers for our raw materials, and any disruption in supply or adverse change in supply terms it may materially affect our business.

3. Our revenues are significantly dependent on certain geographical regions, and any adverse developments in these regions could adversely impact our business, financial condition and results of operations.

4. Dependence on a limited number of end-user industries and on customers capital expenditure decisions may reduce demand for our products and may adversely affect our revenues, cash flows and financial condition

5. There have been instances of delays in filings of certain forms which were required to be filed as per the reporting requirements as well as discrepancies in the forms submitted to the Registrar of Companies (ROC) in accordance with the Companies Act, 2013.

SIGNIFICANT ACCOUNTING POLICIES

For Significant accounting policies please refer Significant Accounting Policies (Note 1), beginning under "Restated Consolidated Financial Statements" on page 237 of this Draft Red Herring Prospectus. Set out below are a few key performance indicators

Financial Key Performance Indicators of our Company

Particulars	Unit	September 30, 2025*	March 31, 2025	March 31, 2024	March 31, 2023
Revenue from Operations (1)	( in lakhs)	3,352.81	7,516.62	8,896.17	10,311.34
Growth in Revenue from Operations (2)	(YoY%)	-	(15.51)%	(13.72)%	77.15%
Gross Profit (3)	( in lakhs)	1,865.27	3,617.09	2,920.94	2,852.06
Gross Profit Margin (4)	(%)	55.63%	48.12%	32.83%	27.66%
EBITDA (5)	( in lakhs)	759.62	1,013.33	447.59	377.65
EBITDA Margin (6)	(%)	22.66%	13.48%	5.03%	3.66%
Profit After Tax (7)	( in lakhs)	441.31	491.43	200.45	178.10
PAT Margin (8)	(%)	13.16%	6.54%	2.25%	1.73%
RoCE (9)	(%)	18.30%	31.92%	20.55%	22.14%
RoE (10)	(%)	28.75%	46.14%	27.92%	35.29%
Return on Assets (11)	(%)	3.95%	4.91%	3.01%	2.98%
Net Fixed Asset Turnover (12)	(in times)	1.70	9.13	10.34	19.28

*Numbers for September 30, 2025 are not annualised; hence not comparable

The above figures have been certified by our Statutory Auditors Bhojak Lunawat & Company, Chartered Accountants pursuant to their certificate dated March 13, 2026.

Notes:

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

(2) Growth in revenue from operations(yoy%) is calculated by subtracting the previous periods revenue from the current periods revenue, and then dividing that number by the previous periods revenue (3) Gross Profit is the Revenue from Operations of the Company as reduced by the cost of materials consumed and Changes in Inventories of finished goods, work in progress and stock-in-trade (4) Gross Profit Margin (%) is Gross Profit divided by Revenue from Operations (5) EBITDA is calculated as Profit before tax + Depreciation + Interest Cost - Other Income (6) EBITDA Margin is calculated as EBITDA divided by Revenue from Operations (7) Profit After Tax (PAT) is calculated as Profit before tax Tax Expenses.

(8) PAT Margin is calculated as PAT for the year divided by revenue from operations.

(9) Return on Capital Employed (ROCE) is calculated as EBIT divided by capital employed, which is defined as shareholders equity plus total borrowings deducted by intangible assets.

(10) Return on Equity (ROE) is ratio of Profit after Tax and average Shareholder Equity (11) Return on Assets (ROA) is equal to PAT / total assets deployed

(12) Net Fixed Asset Turnover is equal to net revenue from operations/total fixed assets. Fixed assets include property, plant & equipment.

Operating KPIs Monitored by the Company

In addition to the financial KPIs mentioned above, we also monitor the following operational metrics to assess our business performance and identify areas for improvement, with the aim of optimizing both revenue (top line) and profitability (bottom line):

Orderbook Bifurcation Industry-wise

Particulars	Stub Period ending September 30, 2025	Fiscal 2025	Fiscal 2024	Fiscal 2023
Commercial Brewery Equipment	3,023.09	7,597.31	5,145.89	10,017.62
Distillery Equipment	-	678.45	473.24	920.08
Food and Beverages Plants	46.76	228.30	203.09	370.17
Microbrewery Equipment	671.64	637.89	853.67	308.01
Malt Spirit Equipment	3,785.15	820.43	662.57	-
Extraction Plant	29.76	115.73	112.61	252.39
Total	7,556.40	10,078.13	7,451.07	11,868.26

Orderbook Bifurcation Statewise

Particulars	Stub Period ending	Fiscal 2025	Fiscal 2024	Fiscal 2023
	September 30, 2025
Karnataka	385.45	1,768.50	1,449.69	3,641.75
Goa	212.05	176.00	851.25	72.72
Himachal Pradesh	755.42	396.07	0.59	500.00
Madhya Pradesh	2,309.60	704.72	220.66	738.96
Uttar Pradesh	147.50	853.14	397.60	740.00
Maharashtra	387.04	714.59	204.16	70.50
West Bengal	1,426.62	181.48	-	2,235.57
Others	720.70	4,493.96	3,011.52	3,502.19
Domestic	6,344.39	9,288.45	6,135.47	11,501.68
Nepal	1,067.76	173.88	90.49	360.97
Bhutan	0.72	403.80	399.00	-
Others	143.54	212.00	826.11	5.61
International	1,212.01	789.68	1,315.59	366.58

DETAILS OF THE REVENUE RECOGNITION METHOD ADOPTED BY THE ISSUER AND ITS BASIC PARAMETERS

Revenue is recognized to the extent, that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured.

Revenue from sale of goods

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods are transferred to the buyer and are recorded net of trade discounts, rebates, Sales Tax, Value Added Tax, Goods and Service Tax and gross of Excise Duty.

Revenue from services

Revenue from services is recognized pro-rata over the period of the contract as and when services are rendered and the collectability is reasonably assured. The revenue is recognized net of Goods and service tax.

COMPONENTS OF INCOME AND EXPENDITURE

Total Revenue

Our total revenue is divided into revenue from operations and other income.

Revenue from operations consists of Sale of Products, Sale of Services and Other Operating Revenue which includes Sale of Scrap.

Other income consists of Interest on Income, Foreign Fluctuation Income, Liabilities no longer required and Other Income.

Total Expenses

Our total expenses consist of Cost of Material Consumed, Changes in Inventories of Work-In-Progress, Employee Benefit Expenses, Finance Costs, Depreciation and Amortization Expenses and Other Expenses.

Cost of materials consumed

Cost of materials consumed includes opening stock of raw material plus purchase of raw materials and consumables less closing stock of raw materials.

Changes in Inventories of Work-in-Progress

Changes in Inventories of Work-in-Progress and Finished Goods includes inventories at the beginning of the year deducted by inventories at the end of the year.

Employee benefits expenses

Employee Benefit Expenses include Salaries, Wages and Bonus, Director Remuneration, Contribution of Provident Funds and other funds, Gratuity Expenses and Staff Welfare Expenses.

Finance Costs

Finance costs include Interest Expenses (paid to Bank and paid to others) and other borrowing costs.

Depreciation and Amortization Expenses

Depreciation and amortization expenses comprise of Depreciation on property, plant & equipment, and Amortization of intangible assets.

Other Expenses

Other expenses include

Other expenses majorly include Travelling and Conveyance Expenses, Repair and Maintenance Charges, Rent, Rates and Taxes, Power and Fuel Expenses, Freight Charges including loading, packing, Professional/Consulting Fees, Security Expenses, Printing and Stationery, Insurance Expenses etc.

RESULTS OF OPERATION

The following discussion on results of operations should be read in conjunction with the Restated Consolidated Financial Statements of our Company for the period ended September 30, 2025 and for the financial years ended March 31, 2025, March 31, 2024, and March 31, 2023.

Particulars	September 30, 2025	% of Total Income	Fiscal 2025 ( )	% of Total Income	Fiscal 2024 ( )	% of Total Income	Fiscal 2023 ( )	% of Total Income
A. Revenue
Revenue from Operations	3,352.81	98.28%	7,516.62	99.52%	8,896.17	99.20%	10,311.34	99.63%
Other Income	58.81	1.72%	36.44	0.48%	71.73	0.80%	38.13	0.37%
Total Income	3,411.62	100.00%	7,553.06	100.00%	8,967.90	100.00%	10,349.47	100.00%
B. Expenses				0.00%		0.00%		0.00%
Cost of Materials Consumed	1,229.42	36.04%	4,024.19	53.28%	5,774.94	64.40%	7,645.38	73.87%
Changes in Inventories of work-in- progress	258.12	7.57%	-124.66	-1.65%	200.29	2.23%	-186.10	-1.80%
Employee benefits expense	714.54	20.94%	1,616.80	21.41%	1,696.23	18.91%	1,635.73	15.80%
Finance costs	172.19	5.05%	216.25	2.86%	176.87	1.97%	140.25	1.36%
Depreciation and Amortisation Expense	47.36	1.39%	83.87	1.11%	59.72	0.67%	46.93	0.45%
Other Expenses	391.11	11.46%	986.96	13.07%	777.12	8.67%	838.67	8.10%
Total Expenses	2,812.75	82.45%	6,803.42	90.07%	8,685.17	96.85%	10,120.87	97.79%
Profit Before Exceptional and Extraordinary Items and Tax	598.87	17.55%	749.64	9.93%	282.73	3.15%	228.60	2.21%
Exceptional Items	-	0.00%	-	0.00%	-	0.00%	-	0.00%
Profit Before Extraordinary Items and Tax	598.87	17.55%	749.64	9.93%	282.73	3.15%	228.60	2.21%
Extraordinary Items	-	0.00%	-	0.00%	-	0.00%	-	0.00%
Profit Before Tax	598.87	17.55%	749.64	9.93%	282.73	3.15%	228.60	2.21%
Tax Expense:		0.00%		0.00%		0.00%		0.00%
(1) Current tax	152.93	4.48%	231.19	3.06%	77.61	0.87%	50.82	0.49%
(2) Prior Period Tax	-	0.00%	0.50	0.01%	-	0.00%	-	0.00%
(3) Deferred tax	4.62	0.14%	26.52	0.35%	4.67	0.05%	-0.33	0.00%
Profit for the period	441.31	12.94%	491.43	6.51%	200.45	2.24%	178.10	1.72%

SIX MONTHS PERIOD ENDED SEPTEMBER 30, 2025

Components of Balance Sheet

( in Lakhs except percentage)

Particulars	September 30, 2025	March 31, 2025
Long-term Borrowings	1,158.33	375.57
Short Term Borrowings	1,304.18	1,345.32
Long Term Provisions	67.82	59.13
Deferred Tax Liabilities (Net)	31.08	26.45
Trade Payables	2,710.60	2,829.42
Other Current Liabilities	4,107.13	4,024.29
Short-term Provisions	11.79	14.00
Property, Plant and Equipment	1,970.76	823.07
Intangible Assets	6.33	6.61
Capital Work-in-Progress	126.91	125.07
Non-Current Investments	2.07	351.36
Inventories	1,870.93	1,529.43
Trade Receivables	3,948.28	4,286.30
Cash and Cash Equivalents	102.01	52.14
Short-term Loans and Advances	2,766.45	2,799.94
Other Current Assets	369.39	25.81

Components of Profit and Loss Statement

The total income was 3,411.62 Lakhs.

Revenue from Operations

Our Revenue from operations contributed 3,352.81 Lakhs for the period ended September 30, 2025 or 98.28% of total income for this period.

Other Income

Our Other Income contributed 58.81 Lakhs for the period ended September 30, 2025 or 1.72% of total income for this period. Total Expenses Our Total expenses during this period were 2,812.75 Lakhs, accounting for 82.45% of total income. This included:

1. Cost of Materials Consumed

Amounted to 1,229.42 Lakhs, i.e., 36.04% of total income

2. Changes in Inventories of Work-In-Progress

Changes in Inventories of Work-In-Progress for the period ended September 30, 2025 was 258.12 Lakhs.

3. Employee Benefit Expenses

Amounted to 714.54 Lakhs, i.e. 20.94% of total income

Comprises of Salaries & wages, Director Remuneration, Contribution of Provident and other funds, Gratuity Expenses and Staff Welfare Expenses.

4. Finance Costs

Amounted to 172.19 Lakhs, i.e. 5.05% of total income

Includes Interest Expenses (including interest paid to bank and others) and other borrowing costs.

5. Depreciation and Amortisation expense

Amounted to 47.36 Lakhs, i.e. 1.39% of total income

Consists of depreciation on property, plant & equipment, and Amortization of intangible assets.

6. Other expenses

Amounted to 391.11 Lakhs, i.e. 11.46% of total income

Other expenses majorly include Travelling and Conveyance Expenses, Repair and Maintenance Charges, Rent, Rates and Taxes, Power and Fuel Expenses, Freight Charges including loading, packing, Professional/Consulting Fees, Security Expenses, Printing and Stationery, Insurance Expenses etc.

7. Profit before Tax

Amounted to 598.87 Lakhs for the period ended September 30, 2025

PBT Margin: 17.55% of total income

No exceptional items were reported during this period

8. Tax Expenses

Current Tax provision of 152.93 Lakhs has been made

Deferred tax expense amounted to 4.62 Lakhs

No adjustments were made for earlier years

9. Profit after Tax

Net profit after tax of 441.31 Lakhs, representing a net margin of 12.94% on total income.

COMPARISON OF FINANCIAL YEAR ENDED MARCH 31, 2025 WITH FINANCIAL YEAR ENDED MARCH 31, 2024.

Components of Balance Sheet

Particulars	March 31, 2025	March 31, 2024	Increase/Decrease	% increase/decrease
Long-term Borrowings	375.57	368.36	7.21	1.96%
Long Term Provisions	59.13	59.97	(0.84)	(1.40)%
Short Term Borrowings	1,345.32	1,050.91	294.41	28.01%
Deferred tax Liabilities	26.45	-	26.45	100%
Trade Payables	2,829.42	2,446.46	382.96	15.65%
Other Current Liabilities	4,024.29	1,899.06	2,125.23	111.91%
Short-term Provisions	14.00	8.95	5.05	56.42%
Property, Plant and Equipment	823.07	860.05	(36.98)	(4.30)%
Intangible Assets	6.61	1.16	5.45	469.83%
Capital Work in progress	125.07	-	125.07	100%
Non-Current Investments	351.36	55.71	295.65	530.69%
Inventories	1,529.43	434.93	1094.5	251.65%
Trade Receivables	4,286.30	3,630.78	655.52	18.05%
Cash and Cash Equivalents	52.14	354.43	(302.29)	(85.29)%
Short-term Loans and Advances	2,799.94	1,304.70	1,495.24	114.60%
Other Current Assets	25.81	22.64	3.17	14.00%

Long-Term Borrowings

Long-term borrowings increased marginally by 1.96% from 368.36 lakhs in FY 2024 to 375.57 lakhs in FY 2025. The increase was primarily due to additional term loan availed during the year, largely offset by scheduled repayments.

Long-Term Provisions

Long-term provisions decreased by 1.40% from 59.97 lakhs in FY 2024 to 59.13 lakhs in FY 2025. The marginal decrease is on account of employee benefit provisions.

Short-Term Borrowings

Short-term borrowings increased by 28.01% from 1,050.91 lakhs in FY 2024 to 1,345.32 lakhs in FY 2025. The increase was primarily on account of higher utilization of working capital facilities to support business operations.

Trade Payables

Trade payables increased by 15.65% from 2,446.46 Lakhs in FY 2024 to 2,829.42 Lakhs in FY 2025. The increase was mainly in line with the increase in the trade receivable cycle which increased from 104 days in FY 2024 to 182 days in FY 2025 respectively and the corresponding increase in trade payable cycle which were 173 days in FY 2024 and 193 days in FY 2025 (as per standalone RFS).

Other Current Liabilities

Other current liabilities increased by 111.91% from 1,899.06 Lakhs in FY 2024 to 4,024.29 Lakhs in FY 2025. The increase was primarily due to higher advances from customers, which rose from 2,044.50 from 1,512.40 Lakhs to 3,556.90 lakhs, reflecting advances received against orders to be executed in subsequent periods. The increase was also supported by higher current tax liabilities (net) by 141.98 Lakhs in FY 2025 which is in line with improved profitability and an increase in employee-related payables by 16.66 Lakhs due to higher accruals. This was partly offset by a reduction in statutory dues payable which declined by 77.91 Lakhs in FY 2025.

Short-Term Provisions

Short-term provisions increased by 56.42% from 8.95 Lakhs in FY 2024 to 14.00 Lakhs in FY 2025. The increase was primarily due to higher provision for gratuity which is in line with employee benefit obligations.

Property, Plant and Equipment

Property, plant and equipment decreased by 4.30% from 860.05 Lakhs in FY 2024 to 823.07 Lakhs in FY 2025. The decrease was primarily due to the depreciation charge of 83.87 Lakhs. Additions during the year was 54.34 Lakhs.

Intangible Assets

Our Intangible Assets increased by 469.83% from 1.16 Lakhs in FY 2024 to 6.61 Lakhs in FY 2025. The increase of 5.74

Lakhs reflects capitalization of new computer software net of amortization expenses.

Non-Current Investments

Our Non-Current Investments increased by 530.69% from 55.71 Lakhs in FY 2024 to 351.36 Lakhs in FY 2025. The increase was due to the increase in fixed deposits by 295.65 Lakhs in FY 2025.

Inventories

Inventories increased by 251.65% from 434.93 Lakhs in FY 2024 to 1,529.43 Lakhs in FY 2025. As on 31^st March 2025, the Company had an order book of 8,662.64 Lakhs and, in order to execute this order book, the Company maintained a higher level of inventory at year end.

Trade receivables

Trade receivables increased by 18.05% from 3,630.78 Lakhs in FY 2024 to 4,286.30 Lakhs in FY 2025. The increase was primarily due to timing of collections and higher outstanding balances from customers at the year-end. Despite a reduction in revenue from operations during FY 2025, receivables remained elevated due to extended credit periods for certain customers and delayed realization of dues at the end of the year.

Cash and Cash Equivalents

Cash and cash equivalents decreased by 85.29% from 354.43 Lakhs in FY 2024 to 52.14 Lakhs in FY 2025. The decrease was mainly on account of utilization of cash balances towards working capital requirements, including funding higher inventory levels, increased advances, capital expenditure and servicing of operating expenses.

Short Term Loans and Advances

Short-term loans and advances increased by 114.60% from 1,304.70 Lakhs in FY 2024 to 2,799.94 Lakhs in FY 2025. The increase was primarily due to higher advances given in the ordinary course of business including advances to vendors which increased by 1,366.41 Lakhs in FY 2025, advance to employees which increased by 20.65 Lakhs in FY 2025 and loans and advances to related parties which increased by 256.36 Lakhs. The increase reflects higher working capital deployment during the year, particularly in light of inventory build-up and operational requirements.

Other Current Assets

Other current assets increased by 14.00% from 22.64 Lakhs in FY 2024 to 25.81 Lakhs in FY 2025. The increase was mainly due to higher prepaid expenses of 5.54 Lakhs in FY 2025 and increase in balance with government by 1.21 Lakhs in FY 2025.

Components of Profit and Loss Income

Total Income

Total income decreased by 15.77% from 8,967.90 Lakhs in FY 2024 to 7,553.06 Lakhs in FY 2025, in line with the decrease in revenue from operations.

Revenue from Operations

Revenue from operations decreased by 15.51% from 8,896.17 Lakhs in FY 2024 to 7,516.62 Lakhs in FY 2025.

Revenue from operations for FY 2024 and FY 2025 included an amount of 131.57 Lakhs and 91.30 Lakhs respectively towards the supply of certain bought-out items as desired by our customers which were not part of our company product portfolio. These items were procured from third parties and supplied to the customers as part of their overall order requirements. Revenue from operations excluding supply of such bought-out items is as shown below:

	FY 2024-25		FY 2023-24
Particulars	Total Billed Order Value ( in lakhs)	Bought-Out Items Included in the Bill ( in lakhs)	Total Billed Order Value ( in lakhs)	Bought-Out Items Included in the Bill ( in lakhs)
Customers
Invoice including	455.46	91.30	710.60	131.57
bought out items

 

Particulars	FY 2024-25	FY 2023-24
Revenue from Operations as per RFS	7,516.62	8,896.17
Less: Revenue from operations of Bought-out items	91.30	131.57
Revenue from Operations excluding bought-out items	7,425.31	8,764.60

During the FY 2022-23, the Company took a conscious call primarily to cater to high-margin orders with better quality to utilize the available resources in the best possible economic interest even if it results in lower revenue from operations. In FY 2024 and FY 2025, the same strategic decision taken in FY 2022-23 to focus on higher-margin products continued and this approach resulted in:

i. Lower Revenue from Operations (excluding bought out items) from 8,764.60 Lakhs in FY 2024 to 7,425.31 Lakhs in FY 2025. ii. Increase in Gross Margin from 32.83% in FY 2024 to 48.12% in FY 2025.

While this approach resulted in a decline in revenue from operations but the objective of improving the gross margin % was achieved by the Company as can be seen from the above data.

The impact of this strategic shift to focus on high-margin orders with better quality is also visible in the current financial year

FY 2026, during which the Company has achieved revenue of 3,352.81 Lakhs till September 30, 2025 with a gross margin of

55.63% as compared to 48.12% in FY 2025. The gestation period of the strategic decision of catering to high-margin orders with better quality seems to be over and the Company currently is having a confirmed order book of 12,951.95 Lakhs as on March 05, 2026. The order book includes a significant order from a German customer amounting to 6,877.50 Lakhs (6550000 EURO), indicating continued demand for the Companys higher-margin offerings.

Other Income

Other income decreased by 49.20% from 71.73 Lakhs in FY 2024 to 36.44 Lakhs in FY 2025. In FY 2024 there was foreign exchange fluctuation gain of 43.15 Lakhs whereas in FY 2025, the Company paid foreign exchange fluctuation loss of 3.34 Lakhs, which primarily contributed to the overall decline in net other income.

Expenditure

Total Expenses

Total expenses decreased by 21.67% from 8,685.17 Lakhs in FY 2024 to 6,803.42 Lakhs in FY 2025. The decrease was largely driven by decrease in costs of material consumed and favorable inventory movement, partially offset by increases in finance costs, depreciation and other expenses.

Cost of Materials Consumed

The cost of materials consumed decreased by 30.32% from 5,774.94 Lakhs in FY 2024 to 4,024.19 Lakhs in FY 2025.

The decline was primarily attributable to the following reasons: i. Decrease in revenue from operations by 15.51% from 8,896.17 Lakhs in FY 2024 to 7,516.61 Lakhs in FY 2025. ii. Improvement in gross margin % from 32.83% in FY 2024 to 48.12% in FY 2025 (i.e., improvement by 15.29%).

Accordingly, the improvement in gross margin resulted in a reduction in cost of goods sold of 1,149.11 Lakhs, demonstrating the impact of strategic shift undertaken by the Company to focus on high-margin orders with better quality.

Employee Benefit Expenses

Employee benefits expenses decreased marginally by 4.68% from 1,696.23 Lakhs in FY 2024 to 1,616.80 Lakhs in FY 2025. The decrease was mainly due to decrease in salaries, wages and bonus by 61.34 Lakhs in FY 2025, decrease in director remuneration by 24.46 Lakhs in FY 2025 which was offset by the increase in gratuity expenses by 4.13 Lakhs.

Finance Costs

Finance costs increased by 22.26 % from 176.87 Lakhs in FY 2024 to 216.25 Lakhs in FY 2025. The increase was primarily due to higher utilization of working capital borrowings.

Depreciation and Amortisation expense

Depreciation and Amortisation expenses increased by 40.44% from 59.72 Lakhs in FY 2024 to 83.87 Lakhs in FY 2025.

The increase was mainly attributable to addition of plant and machinery and other fixed assets in recent periods to the amount of 54.34 Lakhs. Further to this, building worth 248.76 Lakhs was added during the year FY 2024 and the depreciation for which amounted to 10.51 Lakhs wherein the subsequent depreciation charged on the same was 33.15 Lakhs in FY 2025.

Other expenses

Other expenses increased by 27.00% from 777.12 Lakhs in FY 2024 to 986.96 Lakhs in FY 2025. The increase was primarily attributable to higher project execution in line with the Companys focus on customised, higher-margin turnkey projects. The increase in the components of other expenses was as follows:

a) Travelling and conveyance expenses increased by 134.22 Lakhs from 197.79 Lakhs in FY 2024 to 332.01

Lakhs in FY 2025. The rise was mainly due to greater customer interactions, vendor coordination, and project site visits. These travel initiatives supported business objectives, strengthened customer relationships, and facilitated timely execution of projects. b) Freight charges including loading, packing increased by 124.00 Lakhs from 165.43 Lakhs in FY 2024 to

289.34 Lakhs in FY 2025, mainly due to freight charges paid for a single order value of an African Customer which amounted to 146.54 Lakhs. c) Commission and brokerage expenses increased by 46.83 Lakhs from 33.12 Lakhs in FY 2024 to 79.95 Lakhs in FY 2025. This is primarily because of commission charges paid for a single order to the tune of 60.00 Lakhs in

FY 2025. d) Rates and taxes increased by 12.02 Lakhs. This was due to the mortgage charges amounting to 8.58 incurred for the mortgage of Malur facility of our Company.

Profit before Tax

Profit before tax increased significantly by 165.15% from 282.73 Lakhs in FY 2024 to 749.64 Lakhs in FY 2025. The increase was primarily due to improved gross margins which improved from 32.83% in FY 2024 to 48.12% in FY 2025. The increase was also attributable to favorable inventory movements and a higher share of customized, higher-margin projects in the revenue mix.

Tax Expenses

Tax expense increased by 213.82% from 82.28 Lakhs in FY 2024 to 258.21 Lakhs in FY 2025. This increase is in line with higher profitability. During the year, current tax increased by 153.58 Lakhs from 77.61 Lakhs in FY 2024 to 231.19 lakhs in FY 2025, reflecting higher taxable income.

Profit after Tax

After accounting for taxes at applicable rates, our Profit after Tax increased by 145.17% from 200.45 Lakhs in FY 2024 to 491.43 Lakhs in FY 2025. This was majorly due to:

a) Reduction in total expenses by 1,881.76 Lakhs from 8,685.17 Lakhs in FY 2024 to 6,803.41 Lakhs in FY 2025. b) Decrease in employee benefit expenses by 79.43 Lakhs from 1,696.23 Lakhs in FY 2024 to 1,616.80 Lakhs in

FY 2025. c) Increase in Current Tax Expense from 77.61 Lakhs in FY 2024 to 231.19 Lakhs in FY 2025 due to increased PBT in FY 2025. d) Depreciation and Amortization Expensed increased by 24.15 Lakhs in FY 2025 e) Finance Cost reduced by 39.38 Lakhs in FY 2025

COMPARISON OF FINANCIAL YEAR ENDED MARCH 31, 2024 TO FINANCIAL YEAR ENDED MARCH 31, 2023.

Components of Balance Sheet

Particulars	March 31, 2024	March 31, 2023	Increase/Decrease	% increase/decrease
Long-term Borrowings	368.36	392.50	(24.14)	(6.15)%
Long Term Provisions	59.97	59.82	0.15	0.25%
Short Term Borrowings	1,050.91	662.94	387.97	58.52%
Trade Payables	2,446.46	2,158.75	287.71	13.33%
Other Current Liabilities	1,899.06	2,066.53	(167.47)	(8.10)%
Short-term Provisions	8.95	2.67	6.28	235.21%
Property, Plant and Equipment	860.05	534.84	325.21	60.81%
Intangible Assets	1.16	1.64	(0.48)	(29.27%)
Capital work in progress	-	(209.38)	(209.38)	(100.00%)
Non-Current Investments	55.71	1.12	54.59	4874.11%
Deferred Tax Assets (Net)	0.07	4.74	(4.67)	(98.52)%
Inventories	434.93	1,400.87	(965.94)	(68.95)%
Trade Receivables	3,630.78	1,667.14	1963.64	117.78%
Cash and Cash Equivalents	354.43	309.59	44.84	14.48%
Short-term Loans and Advances	1,304.70	1,710.74	(406.04)	(23.73)%
Other Current Assets	22.64	131.82	(109.18)	(82.83)%

Long-Term Borrowings

Long-term borrowings decreased by 6.15% from 392.50 Lakhs in FY 2023 to 368.36 Lakhs in FY 2024. The decrease was primarily due to scheduled repayment of term loans during the year, with limited additional long-term borrowings. This reflects the Companys focus on gradual deleveraging of long-term obligations.

Long-Term Provisions

Long-term provisions increased marginally by 0.25% from 59.82 akhs in FY 2023 to 59.97 Lakhs in FY 2024. The increase was mainly on account of incremental provisions for employee benefits such as gratuity based on actuarial valuation.

Short-Term Borrowings

Short-term borrowings increased by 58.52% from 662.94 Lakhs in FY 2023 to 1,050.91 Lakhs in FY 2024. The increase was mainly due to higher utilisation of working capital facilities. The higher borrowings were necessitated by increased working capital requirements arising from growth in trade receivables and ongoing project execution.

Trade Payables

Trade payables increased by 13.33 % from 2,158.75 Lakhs in FY 2023 to 2,446.47 Lakhs in FY 2024.. The increase was mainly in line with the increase in the trade receivable cycle which increased from 38 days in FY 2023 to 104 days in FY 2024 and the corresponding increase in trade payable cycle which were 71 days in FY 2023 and 173 days in FY 2024.

Other Current Liabilities

Other current liabilities decreased by 8.10% from 2,066.53 Lakhs in FY 2023 to 1,899.06 Lakhs in FY 2024. The movement was primarily on account of the following:

Advance from customers decreased by 412.22 Lakhs from 1,924.62 lakhs in FY 2023 to 1,512. 40 Lakhs in FY 2024, reflecting execution of orders against advances received in the previous year. As on March 31, 2023, the Company had an order book value of 11,868.26 Lakhs which was decreased to 7,451.07 Lakhs in FY 2023.

Statutory dues payable increased by 202.89 Lakhs from 54.03 Lakhs in FY 2023 to 256.92 Lakhs in FY 2024, mainly on account of higher GST and other statutory liabilities.

Current tax liabilities (net) increased by 35.15 Lakhs from 33.02 Lakhs in FY 2023 to 68.17 Lakhs in FY 2024 due to higher taxable profits during the year.

Employee-related payables increased by 6.40 Lakhs from 52.06 Lakhs in FY 2023 to 58.46 Lakhs in FY 2024 which was in line with higher employee base and annual increments as compared to the previous year.

Short-Term Provisions

Short-term provisions increased by 235.21% from 2.67 Lakhs in FY 2023 to 8.95 Lakhs in FY 2024. The increase was on account of reconciliation of provision for gratuity whereby provision for gratuity was appropriately recognised and classified in the current year.

Property, Plant and Equipment

Property, Plant and Equipment increased by 60.81% from 534.84 Lakhs in FY 2023 to 860.05 Lakhs in FY 2024. The increase was due to capital expenditure incurred towards plant & machinery, equipment and infrastructure to support capacity expansion and operational requirements.

Non-Current Investments

Non-Current Investments increased by 4,874.11% from 1.12 Lakhs in FY 2023 to 55.71 Lakhs in FY 2024. The increase was primarily due to increase in fixed deposit by 54.59 Lakhs in FY 2024.

Deferred Tax Assets (net)

Deferred Tax Assets (net) decreased by 98.52% from 4.74 Lakhs in FY 2023 to 0.07 Lakhs in FY 2024. The significant decrease was due to recognition of deferred tax assets on timing differences between book value of depreciable assets as per books of accounts and WDV as per Income Tax purposes from 20.71 Lakhs in FY 2023 to 0.30 Lakhs in FY 2024. The decrease was also due to the impact of difference between tax depreciation and depreciation/amortization charged for the financial reporting from 4.74 Lakhs in FY 2023 to 0.07 Lakhs in FY 2024.

Inventories

Inventories decreased by 68.95% from 1,400.87 Lakhs in FY 2023 to 434.93 Lakhs in FY 2024. The decrease was primarily due to lower closing raw material inventory by 765.65 Lakhs which reduced from 999.10 Lakhs in FY 2023 to

233.45 Lakhs in FY 2024 owing to utilisation of previously procured stock for order execution. Overall, the reduction in inventory levels indicates improved inventory planning and working capital management.

Trade receivables

Trade receivables increased by 117.78% from 1,667.14 Lakhs in FY 2023 to 3,630.78 Lakhs in FY 2024. The increase was primarily due to the extended credit terms to customers in line with business operations and competitive market practices.

Cash and Cash Equivalents

Cash and cash equivalents increased by 14.48% from 305.59 Lakhs in FY 2023 to 354.43 Lakhs in FY 2024. The increase was driven by prudent cash management despite higher working capital deployment.

Short Term Loans and Advances

Short-term loans and advances decreased by 23.73% from 1,710.74 Lakhs in FY 2023 to 1,304.70 Lakhs in FY 2024. The decrease was mainly due to recovery and adjustment of advances given to vendors which reduced by 483.14 Lakhs in FY 2024 and reduction in advance to employees by 39.76 Lakhs in FY 2024.

Other Current Assets

Other current assets decreased by 82.83% from 131.82 Lakhs in FY 2023 to 22.64 Lakhs in FY 2024. The decrease was primarily on account of the following:

Deposits with banks (original maturity of more than 3 months but less than 12 months) reduced by 68.10 Lakhs from 87.50 Lakhs in FY 2023 to 19.40 Lakhs in FY 2024 due to maturity and utilisation of such deposits during the year.

Balances with Government authorities decreased significantly by 40.34 Lakhs from 41.12 Lakhs in FY 2023 to

0.78 Lakhs in FY 2024, mainly due to receipt/adjustment of statutory balances.

Prepaid expenses reduced marginally by 0.74 Lakhs from 3.20 Lakhs in FY 2023 to 2.46 Lakhs which is in line with normal business operations.

Components of Profit and Loss

Income

Total Income

Total income decreased by 13.35% from 10,349.47 Lakhs in FY 2023 to 8,967.97 Lakhs in FY 2024. The decrease was primarily due to decrease in revenue from operations during the year. This was partially offset by higher other income, which increased mainly on account of higher interest income and gain in foreign fluctuation income during the year.

Revenue from Operations

Our revenue from operations decreased by 13.72%, from 10,311.34 Lakhs in FY 2023 to 8,896.17 lakhs in FY 2024. Revenue from operations for FY 2023 included an amount of 1,667.14 Lakhs towards the supply of certain bought-out items as desired by the Company which were not manufactured by our Company. These items were procured from third parties and supplied to 3 4 customers as part of their overall order requirements.

During the FY 2022-23, the Company took a conscious call primarily to cater to high-margin orders with better quality to utilize the available resources in the best possible economic interest even if that results in lower revenue from operations. In FY 2024, the same strategic decision taken in FY 2022-23 to focus on higher-margin products continued and this approach resulted in:

iii. Almost flat Revenue from Operations from 8,644.20 Lakhs in FY 2023 to 8,764.60 Lakhs in FY 2024. iv. Increase in Gross Margin from 27.66% in FY 2023 to 32.83% in FY 2024.

While this approach resulted in a flat revenue from operations but the objective of improving the gross margin % was achieved by the Company as can be seen from the above data.

Other Income

Other income increased by 88.12% from 38.13 Lakhs in FY 2023 to 71.73 Lakhs in FY 2024, mainly due to gain in foreign fluctuation income by 43.22 Lakhs and increase in interest income by 2.48 Lakhs in FY 2024.

Expenditure

Total Expenses

Total expenses decreased by 14.19% from 10,120.86 Lakhs in FY 2023 to 8,685.17 Lakhs in FY 2024. The decrease was due to the factors described below:

Cost of Material Consumed

The cost of material consumed decreased by 1870.44 from 7,645.38 Lakhs in FY 2023 to 5,774.94 Lakhs in FY 2024.

The decline was primarily attributable to the following reasons: i. Decrease in revenue from operations by 13.72% from 10,311.34 Lakhs in FY 2024 to 8,896.17 Lakhs in FY

2024. ii. Improvement in gross margin % from 27.66% in FY 2023 to 32.83% in FY 2024 (i.e., improvement by 5.17%).

Employee benefit expenses

Employee benefits expenses increased by 3.70% from 1,635.73 Lakhs in FY 2023 to 1,696.23 Lakhs in FY 2024. The increase was primarily due to increase in salaries, wages and bonus by 77.47 Lakhs in FY 2024 on account of annual incremental of around 10% and increase in staff welfare expenses by 0.21 Lakhs in FY 2024 which was primarily setoff by decrease in director remuneration by 11.64 Lakhs and reduction in contribution of provident and other funds by 2.23

Lakhs.

Finance Costs

Finance costs increased by 26.11% from 140.25 Lakhs in FY 2023 to 176.87 Lakhs in FY 2024. The increase was mainly attributable to higher utilisation of working capital facilities and short-term borrowings during the year to fund operational and working capital requirements. The movement also reflects the general interest rate prevailing during that period.

Depreciation and Amortisation expense

Depreciation and Amortisation expenses increased by 27.25% from 46.93 Lakhs in FY 2023 to 59.72 Lakhs in FY 2024. The increase was due to addition of plant & machinery, equipment and other fixed assets during that year to the tune of

384.45 Lakhs, resulting in a higher depreciable base.

Other expenses

Other expenses decreased by 7.34% from 838.67 Lakhs in FY 2023 to 777.12 Lakhs in FY 2024. The decrease was primarily attributable to the following:

a) Rent expenses decreased by 40.93 Lakhs, from 107.16 Lakhs in FY 2023 to 66.23 Lakhs in FY 2024. In FY

2023, the Company incurred rent of 33.12 Lakhs for its Indore facility, which was discontinued in FY 2024 following the relocation of manufacturing operations to its owned facility in Jaipur. Further, rent expenses amounting to 19.84 Lakhs were incurred in FY 2023 in respect of the Companys unit located in Malur. Such expenses were not incurred in FY 2024, as the operations of the Malur unit were discontinued and consolidated with the Jaipur unit. b) Travelling and conveyance expenses reduced by 49.30 Lakhs in FY 2024. Travelling and conveyance expenses declined by 49.30 Lakhs in FY 2024 primarily due to reduced business travel during the year. This reduction may be attributed to lower scale of operations, completion of major projects in the previous year, and consolidation of operations at fewer locations, resulting in decreased employee movement and transportation requirements. c) Business Promotion expenses reduced by 15.92 Lakhs in FY 2024. The decrease was mainly due to lesser participation in international and domestic exhibitions compared to the previous year. d) Commission and Brokerage expenses declined by 36.57 Lakhs from 69.69 Lakhs in FY 2023 to 33.12 Lakhs in FY 2024. The reduction was primarily due to a higher proportion of direct orders received from customers rather than through consultants during FY 2024, as compared to the previous year e) Bad debts written off increased by 64.13 Lakhs from 51.62 Lakhs in FY 2023 to 115.75 Lakhs in FY 2024.

The rise was primarily on account of write-off of certain aged and long-pending receivables considered irrecoverable during the year FY 2024. f) Rates and Taxes increased by 4.09 Lakhs from 14.48 Lakhs in FY 2023 to 18.57 Lakhs in FY 2024. During the year FY 2024, the Company paid higher taxes and interest charges due to increased short-term borrowings availed by the Company in that year.

Profit before Tax

Profit before tax increased by 23.67% from 228.61 Lakhs in FY 2023 to 282.73 Lakhs in FY 2024. The improvement was primarily driven by reduction in cost of materials consumed and tighter control over operating costs thereby reducing the total expenses in FY 2024 and increasing profit before tax even when the revenue from operations has declined in FY 2024.

Additionally, the Company has improved its gross margins from 27.66% in FY 2023 to 32.83% in FY 2024 by focusing on customized, higher-margin turnkey projects.

Tax Expenses

Tax expenses increased by 62.96% from 50.49 Lakhs in FY 2023 to 82.28 Lakhs in FY 2024. The increase was mainly due to increase in the current tax expense by 26.79 Lakhs in FY 2024 and this was in line with higher taxable profits during the year.

Profit after Tax

After accounting for taxes at applicable rates, our Profit after Tax increased by 12.54% from 178.12 Lakhs in FY 2023 to

200.45 Lakhs in FY 2024. This was majorly due to:

f) Reduction is cost of materials consumed by 1,870.44 Lakhs in FY 2024 and reduction in overall total expenses by

1,435.28 Lakhs. g) Increase in Other Income by 33.68 Lakhs from 38.13 Lakhs in FY 2023 to 71.80 Lakhs in FY 2024. h) Increase in Current Tax Expense from 48.02 Lakhs in FY 2023 to 77.82 Lakhs in FY 2024 due to increased PBT in FY 2025. i) Employee Benefit Expenses increased by 60.49 Lakhs in FY 2024 j) Depreciation and Amortization Expensed increased by 12.79 Lakhs in FY 2024 k) Finance Cost increased by 36.62 Lakhs in FY 2024

CASH FLOWS

The table below is our cash flows for the financial years ended on March 31, 2025, March 31, 2024, and March 31, 2023:

( in Lakhs)

		For the Financial Years ended on
Particulars	For the period ended September 30, 2025	2025	March 31, 2024	2023
Net Cash generated from operating activities	317.53	60.32	62.24	172.58
Net Cash generated from/(utilised in) investing activities	(837.08)	(447.98)	(204.35)	(452.63)
Net Cash generated from financing activities	569.42	85.37	186.95	103.70

Cash Flows from Operating Activities

For the period ended 30 September 2025

Net cash generated from operating activities was 317.53 Lakhs for the six-month period ended September 30, 2025. Net profit before tax was 598.87 Lakhs, which was primarily adjusted for depreciation of 47.36 Lakhs, finance cost of 172.19 Lakhs, foreign exchange fluctuation loss of 5.36 Lakhs and gratuity expense of 8.73 Lakhs, and reduced by interest income of 10.25 Lakhs and foreign exchange fluctuation gain of 45.64 Lakhs. Operating profit before working capital changes was 776.81 Lakhs. The adjustments to operating profit before working capital changes included adjustments for (i) Decrease in Trade Payables of 118.81 Lakhs, (ii) Increase in Other Current Liabilities of 82.82 Lakhs, (iii) Decrease in Provisions of 2.25 Lakhs, (iv) Increase in Inventories 341.50 Lakhs (v) Decrease in Trade Receivables of 383.48 Lakhs (vi) Decrease in Loans and Advances of 33.49 Lakhs and (vii) Increase in Other Current Assets of 343.58 Lakhs. Direct Taxes paid for the period ended September 30, 2025 amounted to 152.93 Lakhs.

For the year ended March 31, 2025

Net cash generated from operating activities was 60.32 Lakhs for FY 2025. Net profit before tax was 749.64 Lakhs, which was primarily adjusted for depreciation of 83.87 Lakhs, finance cost of 216.25 Lakhs, foreign exchange fluctuation loss of 3.37 Lakhs and gratuity expense of 12.67 Lakhs, and reduced by interest income of 25.09 Lakhs. Operating profit before working capital changes was 1,040.73 Lakhs. The adjustments to operating profit before working capital changes included adjustments for (i) Increase in Trade Payables of 382.95 Lakhs, (ii) Increase in Other Current Liabilities of 2,125.23 Lakhs, (iii) Decrease in Provisions of 8.46 Lakhs, (iv) Increase in Inventories 1,094.50 Lakhs (v)

Increase in Trade Receivables of 655.53 Lakhs (vi) Increase in Loans and Advances of 1,495.24 Lakhs and (vii) Increase in Other Current Assets of 3.17 Lakhs. Direct Taxes paid for the financial year ended March 31, 2025 amounted to

231.69 Lakhs.

For the year ended March 31, 2024

Net cash generated from operating activities was 62.24 Lakhs for FY 2024. Net profit before tax was 282.73 Lakhs, which was primarily adjusted for depreciation of 59.72 Lakhs, finance cost of 176.87 Lakhs, foreign exchange fluctuation loss of 1.64 Lakhs and gratuity expense of 8.54 Lakhs and reduced by interest income of 25.32 Lakhs and foreign exchange fluctuation gain of 43.15 Lakhs. Operating profit before working capital changes was 461.03 Lakhs.

The adjustments to operating profit before working capital changes included adjustments for (i) Increase in Trade Payables of 287.71 Lakhs, (ii) Decrease in Other Current Liabilities of 167.46 Lakhs, (iii) Decrease in Provisions of 2.11 Lakhs, (iv) Decrease in Inventories 965.95 Lakhs (v) Increase in Trade Receivables of 1,920.49 Lakhs (vi) Decrease in Loans and Advances of 406.04 Lakhs and (vii) Decrease in Other Current Assets of 109.18 Lakhs. Direct Taxes paid for the financial year ended March 31, 2024 amounted to 77.61 Lakhs.

For the year ended March 31, 2023

Net cash generated from operating activities was 172.58 Lakhs for FY 2023. Net profit before tax was 228.60 Lakhs, which was primarily adjusted for depreciation of 46.93 Lakhs, finance cost of 140.25 Lakhs, foreign exchange fluctuation loss of 4.00 Lakhs and gratuity expense of 11.85 Lakhs and reduced by interest income of 22.84 Lakhs. Operating profit before working capital changes was 408.80 Lakhs. The adjustments to operating profit before working capital changes included adjustments for (i) Increase in Trade Payables of 1,337.03 Lakhs, (ii) Increase in Other Current Liabilities of 1,898.47Lakhs, (iii) Decrease in Provisions of 61.99 Lakhs, (iv) Increase in Inventories 561.18 Lakhs (v) Increase in Trade Receivables of 1,253.14 Lakhs (vi) Increase in Loans and Advances of 1,427.53 Lakhs and (vii) Increase in Other Current Assets of 117.06 Lakhs. Direct Taxes paid for the financial year ended March 31, 2023 amounted to 50.82 Lakhs.

Cash Flows from Investing Activities

For the period ended 30 September 2025

Net cash used in investing activities was 837.08 Lakhs. This was primarily on account of purchase of property, plant and equipment of 1,196.62 Lakhs, partly offset by redemption of investments of 349.29 Lakhs and interest received of 10.25 lakhs.

For the year ended March 31, 2025

Net cash used in investing activities was 447.98 Lakhs. This was mainly due to purchase of property, plant and equipment of 179.41 Lakhs, investment of 295.65 Lakhs, partly offset by sale of property, plant and equipment of 2.00 Lakhs and interest received of 25.09 Lakhs.

For the year ended March 31, 2024

Net cash used in investing activities was 204.34 lakhs. This was primarily on account of purchase of property, plant and equipment of 423.83 Lakhs, investment of 54.59 Lakhs which was partly offset by sale of property, plant and equipment of 248.76 Lakhs and interest received of 25.32 Lakhs.

For the year ended March 31, 2023

Net cash used in investing activities was 452.63 Lakhs. This was mainly on account of purchase of property, plant and equipment of 474.36 Lakhs, investment of 1.12 Lakhs which was partly offset by interest received of 22.84 Lakhs.

Cash Flows from Financing Activities

For the period ended 30 September 2025

Net cash generated from financing activities was 569.42 Lakhs. This was primarily on account of proceeds from long-term borrowings of 1,013.08 Lakhs, partly offset by repayment of long-term borrowings of 152.10 Lakhs, finance cost paid of 172.19 Lakhs and net reduction in short-term borrowings of 119.36 Lakhs.

For the year ended March 31, 2025

Net cash generated from financing activities was 85.37 Lakhs, primarily on account of proceeds from long-term borrowings of 496.09 Lakhs and net increase in short-term borrowings of 241.89 Lakhs which was partly offset by repayment of long-term borrowings of 436.36 Lakhs and finance cost paid of 216.25 Lakhs.

For the year ended March 31, 2024

Net cash generated from financing activities was 186.95 Lakhs. This was primarily on account of proceeds from long-term borrowings of 173.91 Lakhs and net increase in short-term borrowings of 359.15 Lakhs which was partly offset by repayment of long-term borrowings of 169.23 Lakhs and finance cost paid of 176.87 Lakhs.

For the year ended March 31, 2023

Net cash generated from financing activities was 103.70 Lakhs. This was primarily on account of proceeds from long-term borrowings of 478.76 Lakhs and proceeds of equity share capital of 49.67 Lakhs which was partly offset by repayment of long-term borrowings of 93.10 Lakhs, net reduction in short-term borrowings of 191.37 Lakhs and finance cost paid of 140.25 Lakhs.

RELATED PARTY TRANSACTIONS

Related party transactions with certain of our promoters, directors and their entities and relatives primarily relate to remuneration, salary, commission and issue of Equity Shares. For further details of related parties kindly refer chapter titled

" Restated Consolidated Financial Statements" beginning on page 237 of this Draft Red Herring Prospectus.

OFF-BALANCE SHEET ITEMS

We do not have any other off-balance sheet arrangements, derivative instruments or other relationships with any entity that have been established for the purposes of facilitating off-balance sheet arrangements.

QUALIFICATIONS OF THE STATUTORY AUDITORS WHICH HAVE NOT BEEN GIVEN EFFECT TO IN THE RESTATED CONSOLIDATED FINANCIAL STATEMENTS

The Restated Consolidated Financial Statements do not contain any qualifications which have not been given effect in the restated consolidated financial statements.

QUALITATIVE DISCLOSURE ABOUT MARKET RISK

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Our exposure to the risk of changes in market interest rates relates primarily to our long-term debt obligations with floating interest rates. We manage our interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. For further information, see "Financial Indebtedness" on page 265.

Effect of Inflation

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

Credit Risk

Credit risk is the risk of financial loss to us if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises principally from our receivables from deposits with landlords and other statutory deposits with regulatory agencies and also arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. We assess the credit quality of the counterparties, taking into account their financial position, past experience and other factors. We limit exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a months operational costs. We review the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts.

Our Company conducts an extensive financial and credibility check on the landlords before taking any property on lease and our Company has no instance of non-refund of security deposit on vacating the leased property. The Company also in some cases ensure that the notice period of rentals are adjusted against the security deposits and only differential, if any, is paid out thereby further mitigating the nonrealization risk. Our Company foresees no credit risks on deposits with regulatory authorities

Liquidity risk

Liquidity risk is the risk that we will not be able to meet our financial obligations as they become due. We manage liquidity risk by ensuring, that we will always have sufficient liquidity to meet our liabilities when due.

OTHER MATTERS

Details of default, if any, including therein the amount involved, duration of default and present status, in repayment of statutory dues or repayment of debentures or repayment of deposits or repayment of loans from any bank or financial institution

Except as disclosed in chapter titled "Restated Consolidated Financial Statements" beginning on page 237 of this Draft Red Herring Prospectus, there have been no defaults in payment of statutory dues or repayment of debentures and interest thereon or repayment of deposits and interest thereon or repayment of loans from any bank or financial institution and interest thereon by the Company.

Material Frauds

There are no material frauds, as reported by our statutory auditor, committed against our Company, in the last three Fiscals.

Unusual or infrequent events or transactions

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

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 that materially affect or are likely to affect our income from continuing operations identified above in ‘Managements Discussion and Analysis of

Financial Condition and Results of Operations -Significant factors affecting our financial condition and results of operations and the uncertainties described in ‘Risk Factors on pages 272 and 27 respectively

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

Other than as described in the section titled "Risk Factors" and chapter titled "Managements Discussion and Analysis of

Financial Condition and Results of Operations", beginning on page 27 and 272 of this Draft Red Herring Prospectus respectively to our knowledge there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our company from continuing operations.

Future relationship between Costs and Income

Other than as described in the section titled "Risk Factors" beginning on page 27 of this Draft Red Herring Prospectus, to our knowledge there are no factors, which will affect the future relationship between costs and income or which are expected to have a material adverse impact on our operations and finances.

The extent to which material increases in revenue or income from operations are due to increased volume, introduction of new products or services or increased prices

Changes in revenue in the last three financial years are as explained in the part "Financial Year 2025-24 compared with financial year 2024-23 and Financial Year 2023-24 compared with Financial Year 2022-23" above.

Total turnover of industry segments

We provide engineering, designing, fabrication, installation, commissioning and decommissioning greenfield and brownfield projects across various industries which include, Breweries (Craft and Microbreweries), Distilleries, Food and Beverages, Malt Spirit and Blending, Extraction Plants, FMCG (Fast Moving Consumer Goods) and Pharmaceuticals. We undertake projects with full responsibility from design to handover, build key equipment in-house, use standardized modules and appropriate designs, and deploy project teams across client sites, which helps us deliver on schedule, cut rework, and control costs.

Relevant industry data, as available, has been included in the chapter titled "Industry Overview" beginning on page 141 of this Draft Red Herring Prospectus.

Status of any publicly announced new products or business segments

Please refer to the chapter titled "Our Business" beginning on page 163 of this Draft Red Herring Prospectus for new products or business segments.

The extent to which the business is seasonal

Our business is not seasonal in nature.

Competitive Conditions

Competitive conditions are as described under the Chapters titled "Industry Overview" and "Our Business" beginning on pages 141 and 163 respectively of this Draft Red Herring Prospectus.