SSMD Agrotech India Ltd Management Discussions

OF FINANCIAL CONDITION AND RESULTS OF OPEARTIONS

You should read the following discussion in conjunction with our restated financial statements attached in the chapter titled "Financial Information of the Company" beginning on page no.210 You should also read the section titled "Risk Factors" on page no 33 and the section titled "Forward Looking Statements" on page no 22 of this Draft Red Herring Prospectus., which discusses a number offactors and contingencies that could affect our financial condition and results of operations. The following discussion relates to us, and, unless otherwise stated or the context requires otherwise, is based on our Restated Financial Statements.

Our 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 auditor which is included in this Draft Red Herring Prospectus under "Financial Statements". The Restated Financial Information has been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. Our financial year ends on March 31 of each year, and all references to a particular financial year are to the twelve-month period ended March 31 of that year.

Business Overview

House of Manohar (HOM) originally began its journey as two separate proprietorship firms i.e. Manohar Lal Jai Gopal Agro Industries and S.S Agro India, each manufacturing various products and services engaged in the business of delivering quality food products.

The agro food products business was initiated by Mr. Manohar Lal and Mr. Jai Gopal Munjal with the trading of agro food items through a small shop, building on the familys legacy, Mr. Ishu Munjal established his own proprietorship firm in 2018 and commenced the manufacturing of agro food products. Under the proprietorship of Mr. Ishu Munjal, this venture laid the foundation for the groups journey into the manufacturing and distribution of quality FMCG products. The companys first manufacturing unit was fully operational from its inception and focused on the production of gram flour (besan), marketed under the brand name ‘Manohar Agro.

Building on the success and legacy of Manohar Lal Jaigopal Agro Industries, SS Agro India, another proprietorship firm was established in 2022. This new venture marked the Manohar Groups strategic expansion into additional product categories Under the leadership of Mr. Ishu Munjal, SS Agro India established a modern manufacturing facility dedicated to producing puffed rice and ramdana, marketed under the brand name ‘S.S. This expansion was a key step in the groups growth strategy, aimed at diversifying its product portfolio while maintaining the standards of quality that the Manohar Group is known for.

Building on the successes of both Manohar Lal Jaigopal Agro Industries and S.S. Agro India, Mr. Ishu Munjal, along with his wife, Mrs. Surbhi Munjal, took a significant step forward in 2023 by incorporating a corporate entity originally named "Shree Dhanlaxmi Flour Mills Private Limited" on October 10, 2023. The name of the company was later changed to "SSMD Agrotech India Private Limited", and a fresh certificate of incorporation was issued on February 15, 2024.

Subsequently, the Company acquired the entire business operations of M/s Manohar Lal Jaigopal Agro Industries and M/s S.S. Agro India, sole proprietorship concerns of Mr. Ishu Munjal, through a Business Transfer Agreement dated April 1, 2024. This strategic move consolidated the entire agro products manufacturing business under a single corporate umbrella. Following this, pursuant to a resolution passed by the shareholders on February 7, 2025, the Company was converted into a public limited company. Accordingly, the name of the Company was changed to "SSMD Agrotech India Limited", and a fresh certificate of incorporation reflecting the new name was issued by the Registrar of Companies, Central Registration Centre, on February 24, 2025.

SSMD Agrotech India Limited is operating under the Umbrella Brand name of "House of Manohar" is a rapidly growing player in the market. The company is engaged in the manufacturing, trading, and repacking of a wide array of high-quality agro-food products. SSMD Agrotech operates under four primary sub-brands: Manohar Agro, S.S. Brand, Delhi Special, Shri Dhanlaxmi.

Our Company is an ISO 9001:2015 certified organization for Quality Management System, ISO 14001:2015 for Environmental Management System, ISO 22000:2018 for Food Safety Management System, ISO 45001:2018 for

Occupational Health and Safety Management System. We consistently source high-grade raw materials at our manufacturing

facilities to maintain rigorous standards and deliver quality products.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL YEAR

As per mutual discussion between the Board of the Company and LM, in the opinion of the Board of the Company there

have not arisen any circumstances since the date of the last financial statements as disclosed in this Draft Red Herring

Prospectus and which materially and adversely affect or is likely to affect within the next twelve months except as follows:

1. The Company has placed its corporate office within the same state with effect from 11^th day of April, 2025.

2. The company has appointed Mr. Rajesh Thakur as Company Secretary and Compliance Officer of the Company vide board resolution dated 11.04.2025 w.e.f, 07.04.2025.

3. The Company has passed the Board Resolution in the meeting of Board of Directors dated May 31, 2025, authorizing the Board of Director to raise funds by making an Initial public offering.

4. In the Board Meeting held on 14/04/2025 the company has issued following Equity Shares after the date of last financial statements i.e. March 31, 2025 as bonus shares (hereinafter referred to as new shares) to the existing shareholders in the Company in the ratio of 10:1.

Date of Allotment	No. of Equity Shares	Face Value (?)	Issue Price (?)	Nature/ Reason of Allotment	Nature of Consideration
18/04/2025	5,317,390	10	Nil	Bonus Issue in the ratio of 10:1	Nil

5. The members of our Company approved proposal of Board of Directors to raise funds through initial public offering in the extra ordinary general meeting held on June 02, 2025.

6. The Board of directors has passed the resolution on 11.04.2025 for the Constitution of the following board committees:

• Audit Committee

• Nomination and Remuneration Committee

• Stakeholders Relationship Committee

Key factors affecting the results of operation:

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

Economic conditions in the markets in which we operate

Our results of operations are dependent on the overall economic conditions in the markets in which we operate, including India. Any change in macro-economic conditions in these markets, including changes in interest rates, government policies or taxation and political, economic or other developments could affect our business and results of operations. The FMCG market in India may perform differently and be subject to market and regulatory developments that are dissimilar to the markets in other parts of the world. While stronger macro-economic conditions tend to result into higher demand for our products, weaker macro-economic conditions tend to result into lower demand. Change in demand in the market segments we currently supply or improvement/deterioration in the market or a change in regulations, customs, taxes or other trade barriers or restrictions could affect our operations and financial condition.

The following important factors could cause actual results to differ materially from the expectations include among others:

• General economic and business conditions;

• Volatility in financial market

• Increasing competition in the industry;

• Changes in laws and regulations that apply to the industry;

• Changes in fiscal, economic or political conditions in India;

Other Key factors affecting our financial condition and our results of operations:

Important factors that could cause actual results to differ materially from our expectations include but are not limited to:

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

2. Changes in consumer demand;

3. Failure to successfully upgrade our product portfolio, from time to time;

4. Any change in government policies resulting in increases in taxes payable by us;

5. Our ability to retain our key managements persons and other employees;

6. Changes in laws and regulations that apply to the industries in which we operate.

7. Our failure to keep pace with rapid changes in technology;

8. Our ability to grow our business;

9. Our ability to make interest and principal payments on our existing debt obligations and satisfy the other covenants contained in our existing debt agreements;

10. general economic, political and other risks that are out of our control;

11. Inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;

12. Companys ability to successfully implement its growth strategy and expansion plans;

13. failure to comply with regulations prescribed by authorities of the jurisdictions in which we operate;

14. inability to successfully obtain registrations in a timely manner or at all;

15. occurrence of Environmental Problems & Uninsured Losses;

16. conflicts of interest with affiliated companies, the promoter group and other related parties;

17. The performance of the financial markets in India and globally;

18. Global distress due to pandemic, war or by any other reason.

Dependence on third party for manufacturing of our products

Our Company is engaged in the marketing and distribution of a wide range of FMCG products. Our Company has no formal supply agreement or contract with the manufacturers/ vendors/suppliers for the uninterrupted supply of FMCG distributed or marketed products. There can be no assurance that such parties shall continuously provide their products to us and as per our requirements of quantity as well as quality. In the event of any disruption in the supply of products or the non-availability of products, the purchase and distribution schedule may be adversely affected impacting the sales and profitability of the Company.

Key Performance Indicators of the Company

Particulars	FY 22-23			FY 23-24				FY 24-25
		MANOHAR LAL JAIGOPAL AGRO INDUSTRIES	TOTAL	S.S AGRO	MANOHAR LAL JAIGOPAL AGRO INDUSTRIES	SSMD AGROTECH INDIA LIMITED	TOTAL	SSMD AGROTECH INDIA LIMITED
Revenue from operations(1)	1,621.56	3,230.76	4,852.32	3,691.62	3,422.43	220.11	7,334.15	9,917.95
EBITDA(2)	9.24	71.16	80.40	126.85	193.32	2.54	322.66	846.87
EBITDA Margin(3)	0.57%	2.20%	1.66%	53.17%	55.34%	1.81%	4.40%	8.54%
PAT(4)	-6.32	5.96	-0.37	37.73	86.01	-	123.74	537.79
PAT Margin(5)	-0.39%	0.18%	-0.01%	1.44%	1.62%	0.82%	1.50%	5.42%
RoE(%)(6)	-21.31%	26.16%	-0.70%	105.22%	116.52%	64.40%	109.41%	130.46%
RoCE (%)(7)	-5.04%	74.63%	30.85%	97.14%	119.74%	90.30%	109.79%	100.85%

Notes:

(I>Revenue from operation means revenue from sales, service and other operating revenues

(2) EBITDA is calculated as Profit before tax + Depreciation + Interest

(3) ‘EBITDA Margin is calculated as EBITDA divided by Revenue from Operations ⁽⁴ PAT is calculated as Profit before tax - Tax Expenses

(s) ‘pat Margin is calculated as PATfor the period/year divided by revenue from operations.

(6) Return on Equity is ratio ofProfit after Tax and Average Shareholder Equity

(7) Return on Capital Employed is calculated as EBIT divided by capital employed, which is defined as Shareholders Fund + Long term borrowing.

Explanation for KPT Metrics

Key Financial Performance	Explanations
Revenue from Operations	Revenue from Operations is used by the management to track the revenue profile of the business and in turn helps to assess the overall financial performance of the Company and volume of the business.
EBITDA	EBITDA provides information regarding the operational efficiency of the business
EBITDA Margin	EBITDA Margin (%) is an indicator of the operational profitability and financial performance of the business
PAT	Profit after tax provides information regarding the overall profitability of the business
PAT Margin	PAT Margin (%) is an indicator of the overall profitability and financial performance of the business
RoE(%)	Return on Equity (ROE) is a key performance indicator (KPI) widely used to provides how efficiently the Company generates profits from shareholders funds.
RoCE (%)	RoCE is a key performance indicator used to provides how efficiently the Company generates earnings from the capital employed in the business

Comparative Analysis and Justification of Key Balance Sheet Items

Particulars	FY 22-23			FY 23-24				FY 24-25
	S.S AGRO	MANOHAR LAL JAIGOPAL AGRO INDUSTRIES	TOTAL	S.S AGRO	MANOHAR LAL JAIGOPAL AGRO INDUSTRIES	SSMD AGROTECH INDIA LIMITED	TOTAL	SSMD AGROTECH INDIA LIMITED
Share Capital	29.66	36.64	66.30	71.40	58.34	1.00	130.74	53.17
Reserves & Surplus	-	-	-	-	-	1.81	1.81	638.73
Net Worth	29.66	36.64	66.30	71.40	58.34	2.81	132.55	691.90
Long Term Borrowings	55.60	33.26	88.85	37.73	86.01	-	123.74	104.42
Short Term Borrowings	16.23	495.73	511.96	37.87	539.80	0.50	578.17	502.52
Trade Receivables	94.14	117.44	211.58	127.83	137.25	37.42	302.50	306.90
Trade Payables	132.29	247.21	379.50	229.12	314.98	57.13	601.24	260.55
Short Term	6.25	218.12	224.37	7.23	87.44	2.10	96.78	32.22
Loans &
Advances

Explanation for Key Balance Sheet Items Share Capital:

The Company was originally incorporated on October 10, 2023. Subsequently, it acquired the business operations of various proprietorship firms through a Business Transfer Agreement, effective from April 1, 2024.

During the Financial Year 2022-23, the total capital of the proprietorship firms stood at ^66.30 lakhs, which increased to ^130.47 lakhs in FY 2023-24, owing to the transfer of the respective firms profits to their capital accounts.

Following the incorporation of the Company, the paid-up share capital increased from ?1.81 lakhs in FY 2023-24 to ?53.17 lakhs in FY 2024-25. This increase is primarily attributable to the issuance of shares to Mr. Ishu Munjal, pursuant to the Business Transfer Agreement.

Reserves and Surplus:

The Reserves and Surplus increased from ?1.81 lakhs in FY 2023-24 to ^638.73 lakhs in FY 2024-25. This significant rise is primarily due to the profits earned by the Company during the year, along with the issuance of shares to Mr. Ishu Munjal pursuant to the Business Transfer Agreement. The amount received over and above the face value of the shares has been recorded as Securities Premium, which has been credited to Reserves and Surplus.

Net Worth:

The Net Worth of the Company is calculated as the sum of its paid-up share capital and Reserves and Surplus. The increase in the Net Worth of the Company is primarily due to the rise in both the paid-up share capital and the Reserves and Surplus during the financial years.

Long Term Borrowings:

The increase in Long Term Borrowings is primarily due to the availment of various vehicle loans and unsecured term loans from Non-Banking Financial Companies (NBFCs).

Short Term Borrowings:

The Increase in Short Term Borrowings is due to the availment of various unsecured short term loans from Non-Banking Financial Companies (NBFCs).

Trade Receivables:

The increase in trade receivables during the year is primarily due to a rise in credit sales and the companys strategy of offering credit to customers as part of its business expansion efforts.

Trade Payables:

The increase in trade payables is mainly due to higher purchases driven by increased production or sales activity, along with extended credit terms from suppliers.

Short Term Loans & Advances:

The company has provided advances to related and unrelated parties and made payments to vendors which the company has collected leading to the decrease in short term loans and advances.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of Statement of Significant Accounting Policies, please refer to Annexure- IV of Financial Statements as Restated beginning on page no 211 of this Draft Red Herring Prospectus.

Discussion on Result of Operations

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

Particulars	FY 22-23				FY 23-24					FY 24-25
	S.S AGRO	MANOHAR LAL JAIGOPAL AGRO INDUSTRIES	TOTAL	% OF TOTAL INCOME	S.S AGRO	MANOHAR LAL JAIGOPAL AGRO INDUSTRIES	SSMD AGROTECH INDIA LIMITED	TOTAL	% OF TOTAL INCOME	SSMD AGROTECH INDIA LIMITED	% OF TOTAL INCOME
Revenue from operations	1,621.56	3,230.76	4,852.32	99.80 %	3,691.62	3,422.43	220.11	7,334.15	99.85 %	9,917.95	99.99 %
Other income	9.51	0.01	9.52	0.20 %	9.84	0.87	-	10.71	0.15 %	0.45	negligible
Total Income	1631.07	3,230.77	4,861.84	100.00%	3,701.45	3,423.29	220.11	7,344.86	100.00%	9,918.40	100.00 %
Expenses
Purchase of stock in trade	1,649.35	3,209.45	4858.80	99.94 %	3,566.98	3,355.08	229.17	7,151.23	97.36 %	9,700.17	97.80 %
Change in Inventories	(49.89)	(255.04)	(304.92)	(6.27)%	(110.81)	(322.59)	(15.67)	(449.07)	-6.11 %	(1161.24)	(11.71) %
Direct Expenses	12.06	119.93	131.99	2.71 %	87.16	110.46	0.00	197.62	2.69 %	259.47	2.62 %
Employee Benefit Expenses	4.07	60.20	64.27	1.32 %	12.84	61.74	3.09	77.67	1.06 %	157.68	1.59 %
Finance Costs	2.55	44.81	47.36	0.97 %	5.77	74.21	-	79.98	1.09 %	75.50	0.76 %
Depreciation and Amortisation Expenses	13.54	19.00	32.54	0.67 %	20.84	20.48	-	41.32	0.56 %	43.76	0.44 %
Other Expenses	5.71	20.65	26.36	0.54 %	18.38	19.51	0.99	38.88	0.53 %	106.07	1.07 %
Total expenses	1,637.39	3,219.00	4,856.39	99.89 %	3,601.16	3,318.90	217.57	7,137.64	97.18 %	9,181.41	92.57 %
Profit/(Loss) Before Exceptional & Extraordinary Items & Tax	(6.32)	11.77	5.45	0.11 %	100.29	104.39	2.54	207.22	2.82 %	736.99	7.43 %
Exceptional & Extra ordinary Items	-	-	-		-	-	-	-		-
Profit/(Loss) Before Tax	(6.32)	11.77	5.45	0.11 %	100.29	104.39	2.54	207.22	2.82 %	736.99	7.43 %
Tax Expense
Tax Expense For Current Year	-	5.81	5.81	0.12 %	47.13	49.05	0.73	96.91	1.32 %	200.69	2.02 %
Deferred tax	-	-	-	0.00 %	-	-	-	-	0.00 %	(1.50)	(0.02)%
Short/(excess) Provision of Income tax Of earlier Year
Net Current Tax Expenses
Profit/(Loss) Of the Year	(6.32)	5.96	(0.37)	-0.01 %	53.17	55.34	1.81	110.31	1.50 %	537.79	5.42%

Revenue from operations:

Revenue from operations mainly comprises manufacturing and trading of agro food products such as gram flour, puffed rice, ramdana, pulses, rice, atta, other flours, animal cattle feed, poha, roasted chana, sattu, etc., through a B2B model supported by a robust distribution network and a unique D2C dark store factory-driven model.

Other Income:

Our other income primarily comprises interest income on FDR, income from freight and others.

Expenses:

Companys expenses consist of Raw material consumption, Employee benefits expense, Finance costs, Depreciation and amortization and other expenses.

Purchases:

Our purchases primarily comprise procurement of agro commodities and raw materials such as whole pulses, gram, paddy, rice, wheat, mustard seeds, and other grains used for processing into finished products like gram flour, puffed rice, pulses, atta, poha, sattu, ramdana, roasted chana, and cattle feed. The purchase segment also includes packaging materials, logistics and freight charges. Procurement is done from mandis, farmers through brokers involved in-between and trusted suppliers to ensure consistency in quality and cost-effectiveness. The purchase strategy is aligned with our operational models, including our B2B distribution-led model and D2C dark store factory model, enabling us to maintain a robust supply chain and uninterrupted production.

Changes in inventories:

Our inventories comprise of the material available for the processing and productions Direct Expenses:

Direct expenses comprise of the rent, electricity and other charges payable with respect to the factories.

Employee benefits expense:

Our employee benefits expense primarily comprises of Salary & Wages, Managerial Remuneration and Staff Welfare Expenses.

Finance Costs:

Our finance cost includes Interest on overdraft limit and Other Borrowing cost.

Depreciation and Amortization Expenses:

Depreciation includes depreciation on Property, Plant & Equipment etc.

Other Expenses:

Our expenses include costs related to manufacturing and operations such as electricity, packaging, freight and transportation, factory rent, and vehicle running expenses. It also covers administrative and marketing costs like office rent, professional fees, printing and stationery, software expenses, insurance, advertisement and promotional activities, employee reimbursements, and other day-to-day operational expenses essential for running both our B2B and D2C business models efficiently.

COMPARISON OF FINANCIAL YEAR 2024-25 WITH FINANCIAL YEAR 2023-24 (BASED ON RESTATED FINANCIAL STATEMENTS)

Total Income:

Total income for the financial year 2024-25 stood at ? 9,918.40 (Lakhs) whereas in Financial Year 2023-24 the same stood at ? 7,344.86 (Lakhs) representing significant increase of 35.04%. The main reason of increase in total income was:

> Increase in revenue mainly from core business activity to ? 9917.95 lakhs in FY 2024-25 from ? 7334.15 lakhs in F.Y. 2023-24, representing an increase of 35.23% (y-o-y)

Revenue from Operations:

Revenue from Operations for the F.Y. 2024-25 stood at ? 9917.95 Lakhs whereas in F.Y. 2023-24 the same stood at ? 7334.15 Lakhs representing an increase of 35.23%. The main reason for increase in revenue from operations were:

> Increase in revenue mainly from core business activity to ? 9917.95 lakhs in FY 2024-25 from ? 7334.15 lakhs in F.Y. 2023-24, representing an increase of 35.23% (y-o-y)

Other Income:

For F.Y. 2024-25, other income has been decreased to ? 0.45 Lakhs as against ? 10.71 Lakhs in the Financial Year 202324 representing a decrease of 95.82% which is mainly due to decrease in income from freight.

Total Expenses:

For F.Y. 2024-25, total expenses have increased to ? 9181.41 Lakhs from ? 7137.64 Lakhs in the financial year 2023-24 representing a significant increase of 28.63%. Such increase was due to increase in the volume of business operations of the Company.

Purchases:

For F.Y. 2024-25, Purchases of stock in trade was increased to ? 9700.17 lakhs from ? 7151.23 lakhs in the F.Y. 2023-240 representing an increase of 35.64 %. Such increase was due to increase in volume of business operations of the Company.

Direct Expenses:

For F.Y. 2024-25, Direct expenses have increased to 259.47 Lakhs from 197.62 Lakhs in F.Y. 2023-24, representing an increase of 31.29 %.

Employee benefits expense:

Our Company has incurred employee benefits expenses of ? 157.68 Lakhs during the financial year 2024-25 as compared to ? 77.67 Lakhs in the financial year 2023-24, representing an increase of 103.01 %. The said increase is due the increase in the volume of business operation of the Company and increase in salaries and wages.

Finance costs:

Finance costs for the F.Y. 2024-25 has decreased to ? 75.50 Lakhs as against ? 79.98 Lakhs during the financial year 202324, representing an decrease of 5.60%, which is mainly due to decrease in the utilization of bank overdraft facilities and interest on loan.

Depreciation and Amortization Expenses:

Depreciation for F.Y. 2024-25 stood at ? 43.76 Lakhs as against ? 41.32 Lakhs during the financial year 2023-24, representing an increase of 5.91% due to depreciation on new addition of tools and electronic equipments during FY 202425. Addition in tools and electronic equipments was required due to increase in volume of business operation of the company.

Other Expenses:

For F.Y. 2024-25, other expenses were ? 106.07 Lakhs as against ? 38.88 Lakhs during the financial year 2023-24. The increase of 172.81% was mainly due to increase in volume of business operation of the company.

Restated Profit/ (Loss) before tax:

For financial year 2024-25, it has increased to ? 736.99 Lakhs as compared to ? 207.22 Lakhs in the financial year 202324, representing an increase of 255.65% majorly due to:- Total income of the company has increased from ? 7344.86 lakhs in F.Y. 2023-24 to ? 9918.40 lakhs in F.Y. 2024-25.

- EBITDA margin has increased from 4.40 % in F.Y. 2023-24 to 8.54% in F.Y. 2024-25, since the total expenses has not increased in proportion in F.Y. 2024-25 as compared to F.Y. 2023-24.

Restated Profit/ (Loss) after tax:

The Company reported Restated Profit after tax for the financial year 2024-25 at ? 537.79 Lakhs in comparison to ? 110.31 Lakhs in the financial year 2023-24, representing an increase of 387.50% majorly due to:- Total income of the company has increased from ? 7344.86 lakhs in F.Y. 2023-24 to ? 9918.40 lakhs in F.Y. 2024-25.

- EBITDA margin has increased from 4.40 % in F.Y. 2023-24 to 8.54% in F.Y. 2024-25, since the total expenses has not increased in proportion in F.Y. 2024-25 as compared to F.Y. 2023-24.

FINANCIAL YEAR 2023-24 COMPARED TO FINANCIAL YEAR 2022-23 (BASED ON RESTATED FINANCIAL STATEMENTS)

Total Income:

Total income for the financial year 2023-24 stood at ? 7344.86 Lakhs as compared from ? 4861.84 Lakhs in Financial Year 2022-23 representing an increase of 51.07 % which was on account of below reasons: -

> Increase in revenue from core business to ? 7344.86 lakhs in FY 2023-24 from ^4861.84 lakhs in F.Y. 2022-23, representing an increase of 51.07% (y-o-y)

Revenue from Operations:

During the financial year 2023-24 the revenue from operation of our Company increased to ? 7334.15 Lakhs as against ? 4852.32 lakhs in the Financial Year 2022-23, representing increase of 51.15% which was on account of below reasons:> Increase in revenue from core business from ^ 4852.32 lakhs in FY 2022-23 to ^ 7334.15 lakhs in F.Y. 2023-24, representing an increase of 51.15% (y-o-y)

Other Income:

During the F.Y. 2023-24, the other income of our Company increased to ? 10.71 Lakhs as against ? 9.52 lakhs in the Financial Year 2022-23. The increase in the other income on account of freight.

Total Expenses:

The Total Expenses for the financial year 2023-24 increased to ? 7137.64 Lakhs from ? 4856.39 lakhs in the Financial Year 2022-23 representing increase of46.97%. Such increase was due to increase in the volume of business operations of the Company.

Purchases:

The Purchases for the financial year 2023-24 stood ? 7151.23 Lakhs against ? 4858.80 Lakhs in the Financial Year 2022-23 representing an increase of 47.18%. Such increase was due to increase in volume of business operations of the Company.

Direct Expenses:

For F.Y. 2023-24, Direct expenses have increased to 197.62 Lakhs from 131.99 Lakhs in F.Y. 2022-23, representing an increase of 49.73 %.

Employee benefits expense:

Our Company has incurred ? 77.67 Lakhs as Employee benefits expense during the financial year 2023-24 as compared to ? 64.27 Lakhs in the financial year 2022-23 representing an increase of 20.85%, which was on account of increase in salary and wages and increase in the volume of business operation of the company.

Finance costs:

These costs were for the financial Year 2023-24 increase to ^79.98 Lakhs as against ? 47.36 Lakhs during the financial year 2022-23, representing a increase of 68.89% which was due to increase in interest on overdraft limit.

Depreciation and Amortization Expenses:

Depreciation for the financial year 2023-24 stood at ? 41.32 Lakhs as against ? 32.54 Lakhs during the financial year 2022-23, representing a increase of 26.99%. Such increase was due to addition of equipment and tools during financial year 2023-24.

Other Expenses:

Our Company has incurred ? 38.88 Lakhs during the Financial Year 2023-24 on other expenses as against ? 26.36 Lakhs during the financial year 2022-23 representing increase of47.48% due to increase in volume of business operation of the company.

Restated Profit/ (Loss) before tax:

Restated Profit before Tax for the financial year 2023-24 was ? 207.22 Lakhs as compared to Restated Profit before Tax of ? 5.45 Lakhs during the financial year 2022-23, representing an increase of 3704.83% due to increase in volume of business operation of the company during the financial year 2023-24.

Restated Profit/ (Loss) after tax:

The Restated Profit after tax for the financial year 2023-24 was ? 110.31 Lakhs as compared to Restated Loss after Tax of ? (0.37) lakhs during the financial year 2022-23 on account of below reasons:

- Total income of the company has increased to ? 7344.86 lakhs in F.Y. 2023-24 from ? 4861.84 lakhs in F.Y. 2022-23. Information required as per Item (II) (C) (iv) of Part A of Schedule VI to the SEBI Regulations:

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

1. Unusual or infrequent events or transactions

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

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

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

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

Apart from the risks as disclosed under Section "Risk Factors" beginning on page 33 of the Draft Red Herring

Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues

Other than as described in the sections "Risk Factors", "Our Business" and "ManagementsDiscussion and Analysis of Financial Condition and Results of Operations" on pages 33, 141 and 277 respectively, to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.

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

Our business activity primarily falls within a single business and geographical segment, i.e., the manufacturing and trading of agro food products such as gram flour, puffed rice, ramdana, pulses, rice, atta, other flours, animal cattle feed, poha, roasted chana, sattu, etc., as disclosed in the Restated Financial Statements. Accordingly, we do not follow any other segment reporting.

6. Seasonality of business

Our business is not subject to seasonality. For further information, see "Industry Overview" and "Our Business" on pages 133 and 141, respectively.

7. Competitive conditions

Competitive conditions are as described under the Chapters "Industry Overview" and "Our Business" beginning on pages 133 and 141 respectively of this Draft Red Herring Prospectus.