Sumax Engineering Ltd Management Discussions

You should read the following discussion and analysis of financial condition and results of operations together with our financial statements included in this Red Herring Prospectus. The following discussion relates to our Company and is based on our restated financial statements. Our financial statements have been prepared in accordance with Indian GAAP, t he accounting standards and other applicable provisions of the Companies Act. Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "Forward looking statement" 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 factor.

BUSINESS OVERVIEW

Our Company was originally incorporated as "Sumax Engineering Private Limited" under the provisions of Companies Act, 1956 with Registrar of Companies, Hyderabad and received a certificate of incorporation from the Registrar of Companies, Hyderabad on December 21, 1994. Further, our Company was converted from a private limited company to public limited company pursuant to special resolution passed in the Extra-Ordinary General Meeting of the company dated July 20, 2024 and consequently, the name of our Company was changed from "Sumax Engineering Private Limited" to "Sumax Engineering Limited" and a fresh Certificate of Incorporation dated September 18, 2024 was issued to our Company by the Registrar of Companies, Central Processing Centre. The Corporate Identification Number of our Company is U74210TG1994PLC019032. We are engaged in both the manufacturing and trading of a diverse range of products tailored for the Automotive OEM (Original Equipment Manufacturer) Market and Auto Refinish Market. Our manufacturing division specializes in producing high -quality adhesive tapes and die-cuts, rubbing and polishing compounds, buffing pads, reflective tapes and printing solutions, domes and graphics, as well as an extensive range of car care products. These offerings are designed to meet industry standards and pro vide reliable solutions for automotive applications. In addition to manufacturing, our trading segment supplies a variety of essential products, including electrical and pneumatic tools, abrasive sheets, discs, and rolls, body shop consumables, retail products and accessories, and aerosol products. Through our all-inclusive portfolio, we aim to deliver innovative and high-performance solutions that cater to the evolving demands of both automotive manufacturers and the aftermarket industry.

We have consistently grown in terms of our revenues over the past years our revenues from operation were 13,079.45 lakhs in

F.Y.2023-24, 14,612.60 lakhs in the FY 2024-25 and 14,769.06 lakhs in the FY 2025-26. Our Net Profit after tax for the above-mentioned periods are 743.14 lakhs, 998.16 lakhs and 1,275.86 respectively.

FINANCIAL KPIs OF THE COMPANY

(Rs In Lakhs)

Key Performance Indicator	For the year ended March 31, 2026	For the year ended March 31, 2025	For the year ended March 31, 2024
Revenue from Operations ( in Lakhs) (1)	14,769.06	14,612.60	13,079.45
Growth in Revenue from Operations (%)	1.07%	11.72%	3.13%
Total Income ( in Lakhs) (2)	14,834.45	14,718.32	13,154.07
EBITDA ( in Lakhs) (3)	1,907.96	1,502.66	1,162.50
EBITDA Margin (%) (4)	12.86%	10.21%	8.84%
Net Profit for the Year/Period ( in Lakhs) (5)	1,275.86	998.16	743.14
PAT Margin (%) (6)	8.64%	6.83%	5.68%
Restated Net worth ( in Lakhs) (7)	6,160.16	4,884.30	3,886.14
Return on Equity (%) (8)	23.10%	22.76%	21.14%
Return on Capital Employed (%) (9)	23.86%	24.64%	23.34%
Net Asset Value Per Share (Post - Bonus and sub division) ( ) (10)	41.83	33.16	26.39
Debt-Equity Ratio (in times) (11)	0.21	0.16	0.17

⁽¹⁾ Revenue from operations represents the revenue from sale of service & product & other operating revenue of our Company as recognized in the Restated financial information. ⁽²⁾ Total income includes revenue from operations and other income. ⁽³⁾ EBITDA means Earnings before interest, taxes, depreciation and amortization expense, which has been arrived at by obtaining the profit before tax/ (loss) for the year / period and adding back interest cost, depreciation, and amortization expense. ⁽⁴⁾ EBITDA margin is calculated as EBITDA as a percentage of total income. ⁽⁵⁾ Restated profit for the period / year margin is calculated as total income less total expenses.

(6) PAT Margin (%) is calculated as Profit for the year/period as a percentage of Revenue from Operations.

(7) Net-worth means the aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account and debit or credit balance of profit and loss account, after deducting the aggregate value of the accumulate d losses, deferred expenditure and miscellaneous expenditure not written off, as per the restated balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation (Refer Regulation 2 of Chapter - I of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018). Hence, for the purpose of calculation of net worth, we have excluded capital reserve. .⁽⁸⁾ RoE is calculated as Net profit after tax divided by Average Equity.

(9) Return on capital employed calculated as Earnings before interest and taxes divided by capital employed as at the end of respective period/year. (Capital employed calculated as the aggregate value of Tangible Networth, total debt and deferred tax liabilities) ⁽¹⁰⁾ NAV per share is computed as the Total Equity divided by the outstanding number of equity shares.

(11) Debt- equity ratio is calculated by dividing total debt by total equity. Total debt represents long-term and short-term borrowings. Total equity is the sum of share capital and reserves & surplus.

FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Except as otherwise stated in this Red Herring Prospectus and the Risk Factors given in the Red Herring Prospectus, the following important factors could cause actual results to differ materially from the expectations include, among others:

Rising costs, supply disruptions, and import restrictions on essential raw materials may impact our expenses, timelines, and overall financial performance.

A significant portion of our revenues is derived from our Top customers. The loss of business from one or more of these customers could negatively impact our revenues and profitability.

Our promoters and directors have other interests in the company, apart from the normal remuneration, benefits, or reimbursement of expenses incurred.

Our business is heavily reliant on the performance of the automobile sector and the broader automotive industries, both in India and globally. A downturn in these sectors could adversely affect our business and profitability.

Our individual Promoters plays key role in our functioning and we heavily rely on their knowledge and experience in operating our business and therefore, it is critical for our business that our Promoter and Executive Directors remain associated with us. Our success also depends upon the services of our key managerial personnel and our ability to attract and retain key managerial personnel and our inability to attract them may affect our operations.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

1. BASIS OF ACCOUNTING AND PREPARATION OF STANDALONE RESTATED FINANCIAL STATEMENTS

The restated summary statement of assets and liabilities of the Company as at March 31, 2026, March 31, 2025 and March 31, 2024, and the related restated summary statement of profits and loss and cash flows for the year ended March 31, 2026, March

31, 2025 and March 31, 2024(herein collectively referred to as ("Restated Summary Statements") have be en compiled by the management from the audited Financial Statements of the Company for the year ended on March 31, 2026, March 31, 2025, and March 31, 2024, approved by the Board of Directors of the Company. Restated Summary Statements have been prepared to comply in all material respects with the provisions of Part I of Chapter III of the Companies Act, 2013 (the "Act") read with Companies (Prospectus and Allotment of Securities) Rules, 2014, Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("ICDR Regulations") issued by SEBI and Guidance note on Reports in Companies Prospectuses (Revised 2019) ("Guidance Note"). Restated Summary Statements have been prepared specifically for inclusion in the offer document to be filed by the Company with the NSE in connection with its proposed SME IPO. The

Companys management has recast the Financial Statements in the form required by Schedule III of the Companies Act, 2013 for the purpose of restated Summary Statements. The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles in India. All assets and liabilities have been classified as current or non-current as per the Companys normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has determined its operating cycle as twelve months for the purpose of current non-current classification of assets and liabilities.

2. USE OF ESTIMATES

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires the Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses, during the reporting year. Examples of such estimates include estimates of provision for slow moving and obsolete stock, provision for doubtful trade receivables, provision for warranty. Actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in current and future periods.

3. CURRENT & NON-CURRENT CLASSIFICATION

All assets and liabilities are classified into current and non -current.

Assets:

An asset is classified as current when it satisfies any of the following criteria: a) It is expected to be realised in, or is intended for sale or consumption in, the Companys normal operating cycle; b) It is held primarily for the purpose of being traded; c) It is expected to be realised within 12 months after the reporting date; or d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 m onths after the reporting date Current assets include the current portion of non-current financial assets. All other assets are classified as non -current.

Liabilities:

A liability is classified as current when it satisfies any of the following criteria: a) It is expected to be settled in the Companys normal operating cycle; b) It is held primarily for the purpose of being traded; c) It is due to be settled within 12 months after the reporting date; or d) The Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instrumen ts do not affect its classification. Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current.

4. OPERATING CYCLE

All assets and liabilities have been classified as current or non-current as per the Companys normal operating cycle and other criteria set out above which are in accordance with the Schedule III to the Act. Based on the nature of services and the time between the acquisition of assets for providing of services and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current & non -current classification of assets and liabilities.

5. PROPERTY, PLANT & EQUIPMENT AND INTANGIBLE ASSETS (i) Property, Plant & Equipment

Property, Plant and Equipment would be stated at the cost of acquisition or construction, less accumulated depreciation. All costs incurred in bringing the assets to its working condition for intended use to be capitalized.

Subsequent expenditures related to an item of Property, Plant and Equipment are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Property, Plant and Equipment acquired in a used condition are initially recognised at their fair value as on the date of acquisition, including directly attributable costs necessary to bring the asset to its working condition for its intended use . Such assets are depreciated over their remaining useful lives as estimated by the management, in accordance with Schedule II of the Companies Act, 2013.

(ii) Intangible Assets

Intangible assets are carried at cost less accumulated amortization and impairment losses, if any. The cost of an intangible asset comprises of its materials, service costs and other direct related expenses (other than those subsequently recoverable from the taxing authorities), and any directly attributable expenditure on making the asset ready for its intended use. Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the company.

6. DEPRECIATION / AMORTISATION

The depreciation is computed by considering the useful life of the asset as per Schedule II of the Companies Act, 2013 under

Written Down Value Method (WDV). If the Managements estimate of the useful life of a fixed asset at the time of the acquisition of the asset or of the remaining useful life on a subsequent review is different from the aforesaid schedule, depreciation is provided at the applicable rate based on such different useful life as per the advice obtained from a competent technician. Intangibles assets are amortized over their estimated useful life on Straight Line Method (SLM).

Depreciation on Property, Plant and Equipment acquired in a used condition is provided on a WDV basis over the remaining useful life of the asset, as estimated by the management, in accordance with Schedule II of the Companies Act, 2013.

7. INVENTORIES

Inventories comprise raw materials, finished goods and stock-in-trade. Inventories are valued at the lower of cost and net realisable value. Cost of inventories is determined on the First-In-First-Out (FIFO) basis. The cost of raw materials and stock-in-trade includes purchase cost (including duties and taxes, other than those subsequently recoverable), freight inwards and other expenditure directly attributable to the acquisition.

The cost of finished goods includes cost of raw materials (net of recoverable taxes), direct labour, and a systematic allocation of fixed and variable production overheads incurred in converting materials into finished goods and bringing them to their present location and condition. Stock-in-trade is valued at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completio n and the estimated costs necessary to make the sale.

8. IMPAIRMENT OF ASSETS

The Company periodically assesses whether there is any indication that an asset or a group of assets comprising a cash generating unit may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. For an asset or group of assets that do not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Statement of profit and loss. If at the balance sheet date, there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost. An impairment loss is reversed only to the extent that the carrying amount of asset does not exceed the net book value that would have been determined; if no impairment loss had been recognised.

9. INVESTMENTS

Non-current investments are carried at cost less any other-than-temporary diminution in value, determined on the specific identification basis. Profit or loss on sale of investments is determined as the difference between the sale price and carrying value of investment, determined individually for each investment. Cost of investments sold is arrived using average method.

10. FOREIGN CURRENCY TRANSLATIONS

Income and expense in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Any income or expense on account of exchange difference either on settlement or on translation at the balance sheet date is recognized in Profit & Loss Account in the year in which it arises.

11. BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Al l other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.

12. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Company recognizes a provision when there is a present obligation as a result of past (or obligating) event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions for onerous contracts, i.e. contracts where the expected unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it, are recognized when it is probable that an outflow of resources embodying economic benefits will be required to settle a present obligation as a result of an obligating event, based on a reliable estimate of such obligation.

13. REVENUE RECOGNITION

Sale of Goods:

Revenue from sale of goods is recognised when all the significant risks and rewards of ownership of goods are transferred to the buyer as per the terms of the contract. The Company retains no effective control of the goods transferred to a degree usually associated with ownership and no significant uncertainity exists regarding the amount of the consideration that will be derived from the sale of goods. Sales exclude Goods and Service Tax.

Sale of services:

Revenue from services is recognised in accordance with the specific terms of contract on performance.

Other operating revenues:

Other operating revenues comprise of income from ancillary activities incidental to the operations of the Company and is recognised when the right to receive the income is established as per the terms of the contract.

14. OTHER INCOME

Interest Income on fixed deposit is recognized on time proportion basis. Other Income is accounted for when right to receive such income is established.

15. TAXES ON INCOME

Income taxes are accounted for in accordance with Accounting Standard (AS-22) "Accounting for taxes on income", notified under Companies (Accounting Standards) Rules, 2021. Income tax comprises of both current and deferred tax. Current tax is measured on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961. The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability. They are measured using substantially enacted tax rates and tax regulations as of the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on a ccount of other timing differences are recognized only to the extent there is a reasonable certainty of its realization.

16. CASH AND BANK BALANCES

Cash and cash equivalents comprises Cash-in-hand, Current Accounts, Fixed Deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. Other Bank Balances are short-term balance (with original maturity is more than three months but less than twelve months).

17. EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue that have changed the number of equities shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share or increase the net loss per share. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

18. EMPLOYEE BENEFITS

Defined Contribution Plan:

Contributions payable to the recognised provident fund, which is a defined contribution scheme, are charged to the statement of profit and loss.

Defined Benefit Plan:

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service without any monetary limit. Vesting occurs upon completion of five years of service. Provision for gratuity has been made in the books as per actuarial valuation done as at the end of the year/period.

19. SEGMENT REPORTING

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors. Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities".

RESULTS OF OUR OPERATIONS

Based on Financial Statements of Profit & Loss as Restated

Particulars	For the year ended March 31, 2026	% of Total**	For the year ended March 31, 2025	% of Total**	For the year ended March 31, 2024	% of Total**
INCOME
Revenue from Operations	14,769.06	99.56%	14,612.60	99.28%	13,079.45	99.43%
Other Income	65.39	0.44%	105.72	0.72%	74.62	0.57%
Total Income (A)	14,834.45	100.00%	14,718.32	100.00%	13,154.07	100.00%
EXPENDITURE
Cost of Material Consumed	5,401.58	36.41%	6,321.17	42.95%	5,793.04	44.04%
Purchases of Stock-in-Trade	5,339.09	35.99%	5,548.36	37.70%	4,613.85	35.08%
Changes in inventories of stock-in-trade and finished goods	173.95	1.17%	(557.42)	(3.79%)	(132.04)	(1.00%)
Direct manufacturing expenses	262.75	1.77%	312.20	2.12%	270.81	2.06%
Employee benefits expense	1,148.44	7.74%	919.08	6.24%	877.37	6.67%
Finance costs	57.19	0.39%	56.75	0.39%	60.82	0.46%
Depreciation and amortization expense	133.70	0.90%	108.78	0.74%	106.80	0.81%
Other expenses	693.79	4.68%	665.61	4.52%	561.47	4.27%
Total Expenses (B)	13,210.49	89.05%	13,374.53	90.87%	12,152.12	92.38%
Profit before exceptional items and tax	1,623.96	10.95%	1,343.79	9.13%	1,001.95	7.62%
Exceptional items	100.00	0.67%	0.00	0.00%	0.00	0.00%
Profit before tax (A-B)	1,723.96	11.62%	1,343.79	9.13%	1,001.95	7.62%
Tax expense/ (benefit)
(i) Current tax	453.40	3.06%	349.19	2.37%	263.11	2.00%
(ii) Deferred tax expenses/(credit)	(5.30)	(0.04%)	(3.56)	(0.02%)	(4.29)	(0.03%)
Net tax expense/ (benefit)	448.10	3.02%	345.63	2.35%	258.81	1.97%
Profit/(Loss) for the year/Period	1,275.86	8.60%	998.16	6.78%	743.14	5.65%
**Total refers to Total Revenue

Components of our Profit and Loss Account Income

Our total income comprises of revenue from operations and other income.

Revenue from Operation

The Revenue from operations as a percentage of our total income was 99.56%, 99.28% and 99.43% for the and Financial Years ended March 31, 2026, March 31, 2025 and March 31, 2024 respectively.

(Amount in Lakhs)

Particulars	For the year ended March 31, 2026	For the year ended March 31, 2025	For the year ended March 31, 2024
Revenue from Sale of Products
-Domestic Sales	14,695.03	14,522.25	12,948.65
-Export Sales	65.57	77.36	129.47
Revenue from Sale of Services
-Domestic Sales	5.78	8.93	-
Other Operating Income:
-Duty Drawback	0.78	0.46	1.33
-Sale of Scrape	1.90	3.60	-
TOTAL	14,769.06	14,612.60	13,079.45

Other Income

Our other Income consists of Interest received, Gain on Foreign Currency, Discount received, Profit on sale of investments, Reversal of Leave enhancement & Gratuity Expenses and Liabilities written back.

Particulars	For the year ended 31 March 2026	For the year ended 31 March 2025	For the year ended 31 March 2024
Interest received	1.93	1.60	7.81
Bad debts Recovered	-	-	1.06
Discount received	-	0.76	1.11
Gain on Translation of foreign currency balances	33.88	91.03	58.14
Dividend Received	0.22	-	-
Profit on sale of PPE	0.50	-	0.67
Profit on sale of Investments	28.15	7.71	-
Other misc. income	0.71	2.54	1.99
Reversal of gratuity expense	-	1.60	-
Reversal of Leave Encashment expense	-	-	3.84
Liabilities written back	-	0.48	-
TOTAL	65.39	105.72	74.62

Expenditure

Our total expenditure primarily consists of Cost of material consumed, Purchase of Stock-in-Trade, Direct manufacturing expenses, Employee benefit expenses, finance costs, Depreciation and Other Expenses.

Cost of material consumed

Our cost of material consumed comprises of Purchases of materials.

Direct manufacturing expenses

Our direct manufacturing expenses comprise of Power & Fuel, Labour charges, Factory rent, Repairs & Maintenance of Plant and Machinery and other manufacturing expenses.

Employee Benefit Expenses

Our employee benefits expense comprises of Salaries and wages, Staff Welfare, Bonus & Incentives, Directors Remuneration, Contribution to Provident fund & ESIC, Leave Encashment Expenses and Gratuity Expense.

Finance costs

Our Finance cost expenses comprise of Bank Interest & Charges, Interest on Unsecured Loan & Statutory dues and Other Borrowing Cost.

Other Expenses

Our other expenses primarily comprise of Auditors remuneration, Professional fees, Rates & Taxes, Repairs & Maintenance of Vehicle & Building, Rent expenses, Discount Allowed, Carriage outwards, Travelling expenses and Miscellaneous expenses.

(Amount in Lakhs)

Particulars	For the year ended March 31, 2026	For the year ended March 31, 2025	For the year ended March 31, 2024
Conveyance expenses	8.79	6.39	4.80
Insurance	16.05	5.91	7.78
Printing & stationery	16.30	28.11	10.57
Professional Fees	46.95	43.73	23.95
CSR Expenses	20.41	13.93	9.26
Donation	1.22	1.11	0.32
Director Sitting fees	6.98	-	-
Rates & taxes	13.18	29.02	14.01
Repairs & Maintenance - Vehicle	24.84	14.52	11.42
Repairs & maintenance - Building	-	1.91	2.13
Repairs & Maintenance - Others	16.65	14.05	13.12
Royalty	59.95	26.79	23.49
Telephone and Mobile Exp	8.70	8.75	8.53
Miscellaneous expenses	11.42	13.48	6.54
Auditors remuneration	8.50	1.50	1.50
Office expense	9.40	19.18	14.88
Rent expense	41.94	28.39	19.85
Electricity charges	3.20	3.82	3.33
Security Charges	10.16	9.43	8.86
Loss on sale of PPE	-	1.05	-
Loss on sale of Investments	-	-	0.04
Fixed Assets w/off	-	-	0.57
Postage & courier Expenses	1.19	1.35	1.55
Software, Subscriptions & IT Expenses	20.96	16.80	5.88
Bad debts written off	29.45	1.11	4.85
Discount Allowed	85.25	85.90	62.69
Carriage outwards	84.84	136.97	140.90
Business Promotion Expenses	40.97	42.18	41.02
Sales Commission	2.11	10.31	18.31
Travelling Expenses	104.38	99.92	101.32
Total	693.79	665.61	561.47

Provision for Tax

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

Fiscal 2026 compared with fiscal 2025 Revenue from Operations

The Revenue from Operations of our company for fiscal year 202 6 was 14,769.06 Lakhs against 14,612.60 Lakhs for Fiscal year 2025. An increase of 1.07% in revenue from operations. This increase was due to increase in domestic sales of products to 14,695.03 Lakhs in Fiscal 2026 from 14,522.25 Lakhs in Fiscal 2025 .

Profit/ (Loss) after Tax

Profit after tax for the Fiscal 2026 were at 1,275.86 Lakhs against profit after tax of 9 98.16 Lakhs in fiscal 2025. This growth of 27.82% was driven by growth in revenue from operations, a decline in cost of material consumed and purchase of stock-in-trade as a percentage of revenue. In Fiscal 2026, our PAT margin increased by 1.81%, rising to 8.64% from 6.83% in Fiscal 2025. This improvement was primarily driven by: improved operating leverage on account of a reduction in cost of material consumed and purchase of stock -in-trade as a proportion of revenue from operations.

Other Income

The other income of our company for fiscal year 2026 was 65.39 Lakhs against 105.72 for Fiscal year 2025. The decrease of 38.15% in other income. This decrease was due to a decline in gain on translation of foreign currency balances to 33.88 Lakhs in Fiscal 2026 from 91.03 Lakhs in Fiscal 2025, and lower discount received .

Total Income

The total income of the company for fiscal year 2026 was 14,834.45 Lakhs against 14,718.32 Lakhs of total income for Fiscal year 2025 with an increase of 0.79% in total income. This increase was due to the increase in revenue from operations, which was partially offset by a decline in other income during the year.

Expenditure

Cost of material consumed

In Fiscal 2026, cost of material consumed were 5,401.58 Lakhs against 6,321.17 Lakhs of Cost of material consumed in fiscal 2025. A decrease of 14.55%. This increase was due to a reduction in raw material purchases and lower per-unit consumption of raw materials, together with a change in product mix, resulting in an improvement in gross margins even as revenue from operation s increased during the year.

Purchase of Stock-In-Trade

In Fiscal 2026, Purchase of Stock-in-Trade of our company was 5,339.09 Lakhs against in 5,548.36 Lakhs in fiscal 2025. A decrease of 3.77%. This was due to a marginally lower volume of trading purchases during the year, in line with the corresponding trading sales.

Direct Manufacturing Expenses

In Fiscal 2026, the Company incurred Direct expenses of 262.75 Lakhs against 312.20 Lakhs of Direct Manufacturing expenses in fiscal 2025. A decrease of 15.84%. This decrease was due to a reduction in labour charges, power and fuel expenses and consumption of stores and spare parts, reflecting improved operational efficiencies at our manufacturing facility.

Employee Benefit Expenses

In Fiscal 2026, the Company incurred employee benefit expenses of 1,148.44 Lakhs against 919.08 Lakhs expenses in fiscal 2025. An increase of 24.96%. This increase was due to an increase in salaries and wages on account of annual increments and an increase in headcount, coupled with a higher gratuity expense during the year.

Finance Costs

The finance costs for the Fiscal 2026 were 57.19 Lakhs while it was 56.75 Lakhs for Fiscal 2025. An increase of 0.78%. This increase was due to marginally higher utilization of CC loan during the year resulting additional finance cost on bank interest, partially offset by a decrease in interest on statutory dues during the year.

Other Expenses

In fiscal 2026, our other expenses were 693.79 Lakhs and 665.61 Lakhs in fiscal 2025. An increase of 4.23%. This increase was due to an increase in insurance expenses, royalty paid, repairs and maintenance of vehicles, CSR expenses, and software, subscription and IT expenses, which was partially offset by a decrease in carriage outward and sales commission expenses during the year.

Profit/ (Loss) before exceptional items and Tax

Our Company had reported a profit before exceptional items and tax for the Fiscal 2026 of 1,623.96 Lakhs against profit before exceptional items and tax of 1,343.79 Lakhs in Fiscal 2025. An increase of 20.85%. This increase was due to the growth in revenue from operations and a decline in cost of material consumed and purchase of stock -in-trade as a percentage of revenue, which was partially offset by an increase in employee benefit expenses.

Profit/ (Loss) before Tax

Our Company had reported a profit before tax for the Fiscal 2026 of 1,723.96 Lakhs against profit before tax of 1,343.79 Lakhs in Fiscal 2025. An increase of 28.29%. This increase was due to the growth in profit before exceptional items and tax explained above, together with the recognition of an exceptional income of 100.00 Lakhs during Fiscal 2026 pursuant to settlement agreements entered into by our Company

Profit/ (Loss) after Tax

Profit after tax for the Fiscal 2026 were at 1,275.86 Lakhs against profit after tax of 998.16 Lakhs in fiscal 2025, An Increase of 27.82%. This increase was due to the growth in profit before tax as explained above, partially offset by a corresponding increase in total tax expense during the year.

Interest received

The Interest received of our company for fiscal year 2026 was 1.93 Lakhs against 1.60 Lakhs for Fiscal year 2025. An increase of 20.63% in interest received. This increase was on account of interest earned on fixed deposits maintained with banks during Fiscal 2026.

Discount received

The Discount received of our company for fiscal year 2026 was Nil against 0.76 Lakhs for Fiscal year 2025. This was due to discounts no cash/settlement discount being extended by our suppliers during Fiscal 2026, as against 0.76 Lakhs received in Fiscal

2025.

Gain on Translation of foreign currency balances

The Gain on Translation of foreign currency balances of our company for fiscal year 2026 was 33.88 Lakhs against 91.03 Lakhs for Fiscal year 2025. A decrease of 62.78%. This decrease was due to a decline in export sales and comparatively lower favourable movement in foreign exchange rates on foreign currency denominated balances during Fiscal 2026 as compared to Fiscal 2025.

Profit on sale of PPE

The Profit on sale of PPE of our company for fiscal year 2026 was 0.50 Lakhs and nil for Fiscal year 2025. This was due to the sale of certain old plant and machinery/vehicles during Fiscal 2026.

Profit on sale of Investment

The Profit on Sale of Investment of our company for fiscal year 2026 was 28.15 Lakhs against 7.11 Lakhs for Fiscal year 2025. An increase of 265.11%. This was due to a higher gain realised on redemption/sale of mutual fund and other investments during Fiscal 2026 as compared to Fiscal 2025.

Other misc. income

The Other misc. income of our company for fiscal year 2026 was 2.54 Lakhs against 0.71 Lakhs for Fiscal year 2025. A decrease of 72.05%. This decrease was due to lower miscellaneous and non-operating receipts during Fiscal 2026 as compared to Fiscal 2025.

Fiscal 2025 compared with fiscal 2024 Revenue from Operations

The Revenue from Operations of our company for fiscal year 2025 was 14,612.60 Lakhs against 13,079.45 Lakhs for Fiscal year 2024. An increase of 11.72% in revenue from operations. This increase was due to scale up of operations as anticipated growth in demand.

The revenue growth in the "Adhesive Tapes and Die-cuts" segment in FY2025 was mainly driven by higher sales from the die-cut division. This growth offset the decline in masking tape volumes. The change is largely due to a shift in product mix towards higher-value products, with minimal impact from pricing changes.

Profit/ (Loss) after Tax

Profit after tax for the Fiscal 2025 were at 998.16 Lakhs against profit after tax of 743.13 Lakhs in fiscal 2024, An Increase of 34.32%.

This increase was due to Strategic Shift in Product Mix - As part of its long-term growth strategy, our Company has progressively increased the share of higher-value and relatively higher-margin products, including die-cut products, fine-line tapes, abrasives and rubbing & polishing compounds, which offer better realizations compared to the traditional product portfolio. The contribution of these products to overall turnover increased from 47% in FY2023 to 59% during the Stub Period. These products involve higher value addition, customized applications and specialized processing requirements, particularly for automotive OEMs, and generally provide relatively better margins compared to conventional trading products. Consequently, their contribution to our Com panys overall gross profit increased from 55% in FY2023 to 74% during the Stub Period, alongside improvement in overall profitability indicators, including PAT margin. In Fiscal 2025, the PAT margin further expanded to 6.83%, a growth of 1.15% over the previous year. Key factors included: Strategic Shift in Product Mix: As part of our long-term strategy, the Company increased the share of higher-value and higher-margin products, specifically fine-line tapes and abrasive products. These products command better realizations compared to our traditional product portfolio. Reduced Employee Benefit Outgo: Through increased automation and better manpower utilization, employee benefit expenses decreased as a percentage of Total Income from 6.67% in Fiscal 2024 to 6.24% in Fiscal 2025, contributing to the margin expansion. Profitability Momentum: While revenue grew by approximately 11.72%, our Profit Before Tax (PBT) grew by 34.12%, indicating significant operating leverage where our fixed costs were spread over a larger revenue base.

Other Income

The other income of our company for fiscal year 2025 was 105.72 Lakhs against 74.62 for Fiscal year 2024. The increase of 41.68% in other income. This increase was due to additional discounts received from foreign vendors.

Interest received

The Interest received of our company for fiscal year 2025 was 1.60 Lakhs against 7.81 Lakhs for Fiscal year 2024. A decrease of 79.51% in interest received. Represents interest earned on bank deposits, fixed deposits, and other interest -bearing financial instruments. Variations across years are due to changes in deployment of surplus funds in short-term bank deposits to meet banking and operational requirements.

Bad debts Recovered

The Bad debts Recovered of our company for fiscal year 2025 was Nil against 1.06 for Fiscal year 2024. This was due to amounts recovered during the year against debts previously written off. The recovery in FY 2023 -24 reflects successful collection efforts relating to old receivables.

Discount received

The Discount received of our company for fiscal year 2025 was 0.76 Lakhs against 1.11 Lakhs for Fiscal year 2024. A decrease of 31.53% in discount received. This was due to discounts from foreign vendors.

Gain on Translation of foreign currency balances

The Gain on Translation of foreign currency balances of our company for fiscal year 2025 was 91.03 Lakhs against 58.14 Lakhs for Fiscal year 2024. An increase of 56.57%. This increase was due to gain on translation of foreign currency balances was pr imarily due to higher exposure to foreign currency denominated receivables and payables during the year, coupled with favo urable movement in exchange rates, particularly appreciation of relevant foreign currencies against the Indian Rupee.

Profit on sale of PPE

The Profit on sale of PPE of our company for fiscal year 2025 was Nil against 0.67 Lakhs for Fiscal year 2024. This was due to gains arising from the disposal of fixed assets. The relatively small amounts indicate limited asset disposals during the per iod. Profit on Sale of Investment

Profit on sale of Investment

The Profit on Sale of Investment of our company for fiscal year 2025 was 7.71 Lakhs against Nil for Fiscal year 2024. This was due to realized gains on sale of investments, such as mutual funds. Variations are driven by timing of disposals and prevailing market conditions.

Other misc. income

The Other misc. income of our company for fiscal year 2025 was 2.54 Lakhs against 1.99 Lakhs for Fiscal year 2024. An increase of 27.64%. This increase was due to vehicle insurance claims received during the period under consideration. Variations across years are due to the non-recurring nature of such income.

Reversal of gratuity expense

The Reversal of gratuity expense of our company for fiscal year 2025 was 1.60 Lakhs against Nil for Fiscal year 2024. This was due to export incentives received from the government. The absence in Fy24 may indicate lower export activity or non -eligibility/claims during the period.

Liabilities written back

The Liabilities written back of our company for fiscal year 2025 was 0.48 Lakhs against Nil for Fiscal year 2024. This was due to Represents liabilities that are no longer payable and have been written back to income.

Total Income

The total income of the company for fiscal year 2025 was 14,718.32 Lakhs against 13,154.07 Lakhs of total income for Fiscal year 2024 with an increase of 11.89% in total income. This increase was due to scale up of operations as anticipated growth in demand.

Expenditure

Cost of material consumed

In Fiscal 2025, cost of material consumed were 6,321.17 Lakhs against 5,793.04 Lakhs of Cost of material consumed in fisc al 2024. An increase of 9.12%. This increase was due to operational growth of the company.

Purchase of Stock-In-Trade

The Purchase of Stock-in-Trade of our company was 5,548.36 Lakhs against 4,613.85 Lakhs in fiscal 2024. An increase of 20.25%. This was due to maintenance of higher safety stock levels to ensure uninterrupted production, order fulfillment and procurement strategies adopted to mitigate supply chain uncertainties and disruptions. Also, to protect the company against i nput Foreign Currency price fluctuations.

Direct manufacturing Expenses

In Fiscal 2025, the Company incurred Direct expenses of 312.20 Lakhs against 270.81 Lakhs of Direct expenses in fiscal 2024. An increase of 15.28%. This increase was due to operational growth of the company .

Employee Benefit Expenses

In Fiscal 2025, the Company incurred employee benefit expenses of 919.08 Lakhs against 877.37 Lakhs expenses in fiscal 2024. An increase of 4.75%. This increase was due to scale up of activities and creation of new departments as part of growth plan.

Finance Costs

The finance costs for the Fiscal 2025 were 56.75 Lakhs while it was 60.82 Lakhs for Fiscal 2024. A decrease of 6.69%. Thi s increase was due to optimal utilisation of cash flows.

Other Expenses

In fiscal 2025, our other expenses were 665.61 Lakhs and 561.47 Lakhs in fiscal 2024. An increase of 18.55%. This increase was due to scale up of operations.

Profit/ (Loss) before Tax

Our Company had reported a profit before tax for the Fiscal 2025 of 1,34 3.79 Lakhs against profit before tax of 1,001.95 Lakhs in Fiscal 2024. An increase of 34.12%. This increase was due to consolidation, optimisation of resources and re negotiations with logistics etc.

Profit/ (Loss) after Tax

Profit after tax for the Fiscal 2025 were at 998.16 Lakhs against profit after tax of 743.13 Lakhs in fiscal 2024, An Increase of 34.32%. This increase was due to consolidation, optimisation of resources and re negotiations with logistics and other departments.

Fiscal 2026 compared with fiscal 2025 (Balance sheet items)

Long-Term Borrowings

In Fiscal 2026, the Company reported long-term borrowings of 685.28 Lakhs as against Nil in Fiscal 2025. This was due to

Short-Term Borrowings

In Fiscal 2026, the Company reported short-term borrowings of 620.63 Lakhs as against 775.46 Lakhs in Fiscal 2025, a decrease of 19.97%. This was due to

Trade Receivables

In Fiscal 2026, the Company reported trade receivables of 1,763.05 Lakhs as against 1,841.44 Lakhs in Fiscal 2025 , a decrease of 4.26%. This was due to

Trade Payables

In Fiscal 2026, the Company reported trade payables of 592.99 Lakhs as against 617.79 Lakhs in Fiscal 2025, a decrease of 4.01%. This was due to reasons in ordinary course of business dealings with the vendors.

Inventories

In Fiscal 2026, the Company reported inventories of 2,631.82 Lakhs as against 2,872.11 Lakhs in Fiscal 2025, a decrease of 8.37%. This was due to

Long-Term Loans & Advances

In Fiscal 2026, the Company reported long-term loans and advances of 43.06 Lakhs as against 13.85 Lakhs in Fiscal 2025, an increase of 210.90%. This was due to

Short-Term Loans & Advances

In Fiscal 2026, the Company reported short-term loans and advances of 383.56 Lakhs as against 501.90 Lakhs in Fiscal 2025, a decrease of 23.58%. This was due to

Current Investments

In Fiscal 2026, the Company reported current investments of 100.00 Lakhs as against Nil in Fiscal 2025. This was due to

Fiscal 2025 compared with fiscal 2024 (Balance sheet items) Long-Term Borrowings

In Fiscal 2025, the Company reported long-term borrowings of Nil as against 33.20 Lakhs in Fiscal 2024, a decrease of 100%.

This was due to completion of the short-term demand loan.

Short-Term Borrowings

In Fiscal 2025, the Company reported short-term borrowings of 775.46 Lakhs as against 609.66 Lakhs in Fiscal 2024, an increase of 27.20%. This was due to utilisation of CC limits.

Trade Receivables

In Fiscal 2025, the Company reported trade receivables of 1,841.44 Lakhs as against 1,424.07 Lakhs in Fiscal 2024, an increase of 29.31%. This was due to sanctioning credit limits to new customers as part of growth plan.

Trade Payables

In Fiscal 2025, the Company reported trade payables of 617.79 Lakhs as against 489.73 Lakhs in Fiscal 2024, an increase o f 26.15%. This was due to operational reasons in ordinary course of business.

Inventories

In Fiscal 2025, the Company reported inventories of 2,872.11 Lakhs as against 2,281.55 Lakhs in Fiscal 2024, an increase of 25.88%. This was due to additional demand of certain products.

Long-Term Loans & Advances

In Fiscal 2025, the Company reported long-term loans and advances of 13.85 Lakhs as against 13.85 Lakhs in Fiscal 2024, an increase of 0.00%. This was due to reasons in ordinary course of business.

Short-Term Loans & Advances

In Fiscal 2025, the Company reported short-term loans and advances of 501.90 Lakhs as against 360.63 Lakhs in Fiscal 2024, an increase of 39.17%. This was due to advances paid to government authorities and increase in the advance payment to suppliers.

Current Investments

In Fiscal 2025, the Company reported current investments of Nil as against 150.00 Lakhs in Fiscal 2024. This was due to s hort term investments were withdrawn.

Cash Flows

(Amount in lakhs)

Particulars	For the year ended March 31, 2026	For the year ended March 31, 2025	For the year ended March 31, 2024
Net Cash Flow from/ (used in) Operating Activities	1,879.69	70.00	379.42
Net Cash Flow from/ (used in) Investing Activities	(2,743.35)	41.37	(213.05)
Net Cash Flow from/ (used in) Financing Activities	484.77	89.95	114.92

Cash Flows from Operating Activities

1. In FY 26 Net cash flow generated in operating activities was 1,879.69 Lakhs. This comprised of the net profit before tax of 1,723.96 Lakhs, which was primarily adjusted for Interest cost of 50.30 Lakhs, Gratuity & Leave encashment provision of 35.85 Lakhs, Provision for lease equalisation of 0.67 Lakhs, Interest income of 1.93 Lakhs, Dividend income of 0.22 Lakhs, Unrealised foreign exchange loss of 0.78 Lakhs, Sundry balances written off of 29.45 Lakhs, Profit on sale of asset of 0.50 Lakhs, Profit on sale of investments of 28.15 Lakhs and Depreciation and Amortisation expense of 133.70 Lakhs. The resultant operating profit before working capital changes was 1,942.57 Lakhs, which was primarily adjusted for increase in Other Non-Current Assets of 9.26 lakhs along with increase in other liabilities and provisions of 26.04 Lakhs. Additionally, decrease in Loans and Advances of 89.13 Lakhs, Inventories of 240.29 Lakhs, Trade Receivables of 48.94 Lakhs, Other current assets of 0.50 Lakhs and Trade Payables of 25.58 Lakhs.

Cash generated from operations was 2,312.63 Lakhs, which was reduced by direct tax paid of 432.94 Lakhs, resulting into net cash flow from operating activities of 1,879.69 Lakhs.

2. In FY 25 Net cash flow generated in operating activities was 70.00 Lakhs. This comprised of the net profit before tax of 1,343.79 Lakhs, which was primarily adjusted for Interest cost of 50.09 Lakhs, Gratuity & Leave encashment provision of 0.34 Lakhs, Provision for lease equalisation of 23.66 Lakhs, Interest income of 1.60 Lakhs, Unrealised foreign exchange gain of 0.82 Lakhs, Sundry balances written back of 0.48 Lakhs, Sundry balances written off of 1.11 Lakhs, Loss on sale of asset of 1.05 Lakhs, Profit on sale of investments of 7.71 Lakhs and Depreciation and Amortisation expense of 108.78 Lakhs. The resultant operating profit before working capital changes was 1,518.21 Lakhs, which was primarily adjusted for increase in inventories of 590.56 Lakhs, Trade receivables of 418.48 Lakhs, Loans and advances of 141.27 Lakhs and other non-current assets of 1.41 Lakhs, along with increase in Trade payables of 129.36 Lakhs. Additionally, decrease in Other liabilities of 64.28 Lakhs and Other Current Assets (Including Other Bank balances) of 0.18 Lakhs.

Cash generated from operations was 431.75 Lakhs, which was reduced by direct tax paid of 361.75 Lakhs, resulting into net cash flow from operating activities of 70.00 Lakhs.

3. In FY 24 Net cash flow generated in operating activities was 379.44 Lakhs. This comprised of the net profit before tax of 1,001.95 Lakhs, which was primarily adjusted for Interest cost of 53.75 Lakhs, Gratuity & Leave encashment provision of 12.81 Lakhs, Provision for lease equalisation of 26.61 Lakhs, Interest income of 7.81 Lakhs, Unrealised foreign exchange loss of 5.11 Lakhs, Sundry balances written off of 4.85 Lakhs, Profit on sale of asset of 0.67 Lakhs, Fixed assets written off of 0.57 Lakhs, Loss on sale of Investment of 0.04 Lakhs and Depreciation and Amortisation expense of 106.80 Lakhs. The resultant operating profit before working capital changes was 1,204.01 Lakhs, which was primarily adjusted for increase in Inventories of 195.04 Lakhs, Trade receivables of 109.91 Lakhs, other current assets of 0.64 Lakhs and Loans and advances of 151.09 Lakhs. Additionally, decrease in Other non-current assets of 6.77 Lakhs, along with decrease in Trade payables of 101.77 Lakhs and Other liabilities of 9.56 Lakhs. Cash generated from operations was 642.77 Lakhs, which was reduced by direct tax paid of 263.35 Lakhs, resulting into net cash flow from operating activities of 379.42 Lakhs.

Cash Flows from Investment Activities

1. For the year ended March 31, 2026, net cash used in investing activities was 2,743.35 Lakhs, which primarily comprised of cash used for purchase of property, plant & equipment and intangible assets of 2,634.95 Lakhs, Sale of property, plant & equipment of 1.30 Lakhs. Interest income received of 1.93 Lakhs, Dividend income of 0.22 Lakhs, Payment in respect of business acquisitions of 40.00 Lakhs, Purchase of Investment of 1,626.29 Lakhs and Sale of Investments of 1,554.44 Lakhs.

2. For the year ended March 31, 2025, net cash flow from investing activities was 41.37 Lakhs, which primarily comprised of cash used for purchase of property, plant & equipment and intangible assets of 119.62 Lakhs, Sale of property, plant & equipment of 1.68 Lakhs, Interest income received of 1.60 Lakhs and Sale of Investments of 157.71 Lakhs.

3. For the year ended March 31, 2024, net cash used in investing activities was 213.05 Lakhs, which primarily comprised of cash used for purchase of property, plant & equipment and intangible assets of 74.31 Lakhs, Sale of property, plant & equipment of 3.49 Lakhs, Interest income received of 7.81 Lakhs and Purchase of Investments of 150.04 Lakhs.

Cash Flows from Financing Activities

1. For the year ended March 31, 2026, net cash flow from financing activities was 484.77 Lakhs, which primarily comprised of Proceeds of Short-Term Borrowings of 24.87 Lakhs, Repayment of short-Term borrowings of 454.35 Lakhs, Proceeds from Long-Term Borrowings of 1,023.57 Lakhs, Repayment of Long-Term borrowings of 63.65 Lakhs and Interest Cost of 45.67 Lakhs.

2. For the year ended March 31, 2025, net cash flow from financing activities was 89.95 Lakhs, which primarily comprised of Proceeds of Short-Term Borrowings of 287.91 Lakhs, Repayment of short-Term borrowings of 118.96 Lakhs, Repayment of Long-Term borrowings of 36.34 Lakhs and Interest Cost of 42.66 Lakhs.

3. For the year ended March 31, 2024, net cash flow from financing activities was 114.92 Lakhs, which primarily comprised of Proceeds of Short-Term Borrowings of 501.01 Lakhs, Repayment of short-Term borrowings of 297.24 Lakhs, Repayment of Long-Term borrowings of 38.34 Lakhs and Interest Cost of 50.51 Lakhs.

OTHER MATTERS

1. Unusual or infrequent events or transactions

Except COVID-19 or any such kind of pandemic and as described in this Red Herring Prospectus, there have been no other events or transactions to the best of our knowledge which may be described as "unusual" or "infrequent".

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

Other than as described in the Section titled "Financial Information" and chapter titled "Managements Discussion and

Analysis of Financial Conditions and Results of Operations," beginning on Page 168 and 175 respectively of this Red Herring Prospectus, to our knowledge there are no significant economic changes that materially affected or are 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 revenue or income from continuing operations

Apart from the risks as disclosed under Chapter titled "Risk Factors" beginning on page no. 21 in this 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, in case of events such as future increase in labour or material costs or prices that will cause a material change are known

Our Companys future costs and revenues will be determined by demand/supply situation, both of the end services as well as the government policies and other economic factor.

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

Increases in revenues are by and large linked to increases in volume of business and also dependent on the price realization on our products/services.

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

Relevant Industry data and, as available, has been included in the chapter titled " Industry Overview" beginning on page no. 92 of this Red Herring Prospectus.

7. The extent to which business is seasonal.

Our business is dependent to a certain extent on the seasonal, environmental and climate changes. Hence, our business is seasonal in nature.

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

Our business relies on a few Top 10 customers who contribute 55.59%, 46.43% and 43.92% of our total sales in Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively.

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