Sunlite Recycling Industries Ltd Management Discussions

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 146. You should also read the section titled "Risk Factors" on page 26 and the section titled "Forward Looking Statements" on page 19 of this Red Herring Prospectus, which discusses a number of factors 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 dated July 20, 2024, which is included in this 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.

OVERVIEW:

We are engaged in the business of manufacturing of copper rods & wires, copper earthing wires, copper earthing strips, copper conductors, copper wire bars etc. through recycling of copper scrap, which has electrical and mechanical properties suitable for applications in power generation, transmission, distribution and electronic industries. Further, we are also engaged in providing job work services for processing of various products of copper, wherein our customers provide us with the copper scrap and we are converting the copper scrap into copper wire and copper wire rod as per customers requirement. We employ an internal quality control mechanism to ensure that our finished product conforms to the exact requirement of our customers.

Our promoter, Prahladrai Ramdayal Heda, established a proprietorship concern in the name of M/s Sunlite Industries in 2012, engaged in manufacturing copper rods, wires, bars, strips etc. In September 2017, with the aim of expanding the scope and enhancing business administration, Prahladrai Ramdayal Heda decided to include our other two promoters, Nitin Kumar Heda and Khushboo Manishkumar Heda, as partners and established Partnership firm in the name of "M/s. Sunlite Industries". Said partnership firm got registered on October 28, 2017 having registration number GUJVA200549 and the business operations continued as a partnership firm till August 2022. Later, the said partnership concern was converted into a private limited company in August 2022, with the objective of carrying on the business of the aforementioned partnership concern as a going concern under the name of Sunlite Alucop Private Limited bearing Corporate Identification Number U27200GJ2022PTC134540 and subsequently, in January 2024, the company changed its name from Sunlite Alucop Private Limited to Sunlite Recycling Industries Private Limited.

We currently operate through our Registered office and manufacturing unit situated at Survey No. 270A and Plot No 1 of Survey No 267, Chhatamile, Tal. Vaso, Dantali, Kheda, 387350 Gujarat, India with a total area of approx. 12,152 sq. mtr. We started our business operations in 2012 as a proprietorship concern and manufacturing only one product i.e. oxygen-free copper rods. Later in year 2015-16, we expanded our area of operation by developing one more shed and installing copper strip machine with an installed capacity of 350 MT, which was imported from China, thereby started manufacturing of copper strips along with copper rods. Then in year 2017-18, we purchased wire-drawing machine and started manufacturing of copper wire. Subsequently, after entering into the partnership firm to expand our business operations, we purchased Copper CCR Machine in year 2020, with resulted into a significant surge in our revenue from operations. As on the date of this Red Herring Prospectus, we have a total of 20 machines to manufacture wide range of copper products.

Our Product Portfolio offers a diversified product range which includes variety of grades, thickness, widths and standards, in all types of copper products according to customer specifications. We prioritize environmental and safety considerations in our copper production process. Our approach involves recycling copper scrap utilizing electricity sourced from solar generation and clean natural gas, thus mitigating the pollution associated with conventional oil-based energy sources. Copper is one of the most recycled metals of all the metals. The recycling of copper scrap is gaining importance worldwide simply because of the fact that recovery of copper metal from scrap requires much less energy than its recovery made from primary source. Besides, it enables conservation of natural resources. (Source: Indian Bureau of Mines).

Our Company is managed by our Promoters - Prahladrai Ramdayal Heda, Nitin Kumar Heda, Khushboo Manishkumar Heda and Manish Kumar Heda. Prahladrai Ramdayal Heda (chairman and whole-time director of the company and Partner of erstwhile M/s Sunlite Industries) is responsible for quality control, process improvement, Operations & Management, HR & administration. He ventured into the business of manufacturing of copper rods in year 2012 and since then, he has gained a good knowledge and experience of 15 years in this industry. Nitin Kumar Heda (Managing Director of the company and partner of erstwhile M/s Sunlite Industries) who has approx. 17 years of experience in same industry, is responsible for financial aspects of the company along with marketing, vendor management, business planning and development. Khushboo Manishkumar Heda (Non-Executive Director of the company and partner of erstwhile M/s Sunlite Industries) has approx. 06 years of experience in same industry. Manish Kumar Heda (Chief Financial Officer of the company and employee of erstwhile M/s Sunlite Industries) has approx. 15 years of experience in same industry, is responsible for financial activities of the company including finance, statutory compliance, business development, Sales & Marketing, general operations, customer relations management of the Company. Their understanding of the consumer difficulty, intuitive entrepreneurship and involvement in key aspects of our business has helped accelerate and drive our profitable growth. We believe that the sector-specific experience and expertise of our promoters has contributed significantly in the growth of our Company.

We have a strong track record of revenue growth and profitability. The following table sets forth certain key performance indicators for the years indicated:

(Rs. In Lakhs except percentages and ratios)

	For the financial year ended
Key Financial Performance	March 31, 2024	March 31, 2023	March 31, 2022
Revenue from Operations0)	1,16,627.09	1,15,018.88	93,719.32
EBITDA(2)	1,836.07	1,422.88	990.75
EBITDA Margin(3)	1.57%	1.24%	1.06%
Profit After T ax (PAT) (4)	890.36	560.27	426.03
PAT Margin(5)	0.76%	0.49%	0.45%
ROE(6)	75.26%	73.69%	47.85%
ROCE(7)	29.49%	24.05%	22.85%
Net Worth(8)	2,003.90	362.08	1,158.58

Notes:

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

(2) EBITDA is calculated as Profit before tax + Depreciation + Interest Cost - Other Income

(3) ‘EBITDA Margin is calculated as EBITDA divided by Revenue from Operations

(4) pat is calculated as Profit before tax - Tax Expenses

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

(6) Return on Equity is ratio of Profit after Tax and Shareholder Equity

(7) Return on Capital Employed is calculated as EBIT divided by capital employed, which is defined as shareholders equity plus total borrowings {current & non-current}.

(8)Net Worth = Equity Share Capital + Reserve and Surplus (including surplus in the Statement of Profit & Loss) - Preliminary Expenses to the extent not written-off.

Explanation for KPI metrics

KPI	Explanations
Revenue from Operations	Revenue from Operations is used by our management to track the revenue profile of the business and in turn helps to assess the overall financial performance of our Company and volume of our 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 our 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 our business.
RoE(%)	RoE provides how efficiently our Company generates profits from shareholders funds.
RoCE (%)	RoCE provides how efficiently our Company generates earnings from the capital employed in the business.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of Statement of Significant Accounting Policies, please refer to Restated Financial Statements beginning on page 146 of this Red Herring Prospectus.

Factors Affecting our Results of Operations

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 successfully implement strategy, growth and expansion plans and technological initiatives;

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

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

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

9. Our ability to grow our business;

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

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

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

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

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

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

16. occurrence of Environmental Problems & Uninsured Losses;

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

18. any adverse outcome in the legal proceedings in which we are involved;

19. Concentration of ownership among our Promoter;

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

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

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 March 31 2024, March 31, 2023 and March 31, 2022.

(? in Lakhs)

	For the financial year ended
	FY 2023-24	% of Total Income	FY 2022-23	% of Total Income	FY 2021-22	% of Total Income
Income
Revenue From Operation	1,16,627.09	99.98	1,15,018.88	99.98	93,719.32	99.92
Other Income	28.00	0.02	21.03	0.02	72.48	0.08
Total Income	1,16,655.09	100.00	1,15,039.91	100.00	93,791.80	100.00
Expenditure
Cost of Material Consumed	1,10,513.26	94.74	1,10,097.69	95.70	90,290.65	96.27
Purchases of Stock in Trade	1,934.21	1.66	1,553.49	1.35	693.04	0.74
Changes in inventories of WIP, Packing material & finished goods.	-653.18	-0.56	-370.86	-0.32	-35.37	-0.04
Employee Benefit Expenses	249.81	0.21	229.44	0.20	156.05	0.17
Finance Cost	468.23	0.40	472.76	0.41	290.79	0.31
Depreciation and Amortization Expenses	243.26	0.21	239.16	0.21	219.98	0.23
Other Expenses	2,719.49	2.33	2,062.74	1.79	1,612.13	1.72
Total Expenditure	1,15,475.08	98.99	1,14,284.42	99.34	93,227.27	99.40
Profit/(Loss) Before Exceptional & extraordinary items & Tax	1,180.01	1.01	755.49	0.66	564.53	0.60
Exceptional Item	-		-		-
Profit/(Loss) Before Tax	1,180.01	1.01	755.49	0.66	564.53	0.60
Tax Expense:
Tax Expense for Current Year	297.18	0.25	204.31	0.18	148.12	0.16
Deferred T ax	-7.53	-0.01	-9.09	-0.01	-9.62	-0.01
Net Current Tax Expenses	289.66	0.25	195.22	0.17	138.50	0.15
Profit/(Loss) for the Year	890.36	0.76	560.27	0.49	426.03	0.45

Revenue from operations:

We are a copper manufacturing industry, primarily engaged in the business of manufacturing of copper rods & wires, copper earthing wires, copper earthing strips, copper conductors, copper wire bars etc., which has electrical and mechanical properties suitable for applications in power generation, transmission, distribution and electronic industries.

Other Income:

Our other income primarily comprises of Rent Income & Interest Income.

Expenses:

Companys expenses consist of cost of material consumed, Purchase of Stock-in-trade, Change in Inventories, employee benefit expenses, finance cost, depreciation and amortization expenses and other expenses

Cost of Goods Sold:

Our cost of goods sold comprises of purchase of raw Material, purchase of packing material, purchase of stores & spares, purchase of stock-in-trade and change in inventories of raw material, WIP, packing material and finished goods.

Employee benefits expense:

Our employee benefits expense primarily comprises of Salaries, wages, incentive and Directors Remuneration and other funds.

Finance Costs:

Our finance cost includes Interest on loan paid to Bank and other parties and other borrowing costs like bank charges, loan processing fees etc.

Depreciation and Amortization Expenses:

Depreciation includes depreciation on Property, Plant & Equipments, furniture & fixtures, office equipments etc.

Other Expenses:

Our other expenses include custom duty, freight expenses, import expenses, power & fuel, labour & job charges, advertisement & marketing expenses, legal & professional fees, office expenses, security charges, rent expenses, repair & maintenance expenses etc.

For the year ended March 31, 2024 (Based on Restated Financial Statements)

Total Income:

Total income for the year ending March 31, 2024 stood at Rs. 1,16,655.09 Lakhs.

Revenue from Operations:

During the year ending March 31, 2024 revenue from operations stood at Rs. 1,16,627.09 Lakhs.

Other Income:

During the year ending March 31, 2024 , other income was Rs 28.00 Lakhs.

Total Expenses:

The Total Expenses for the year ending March 31, 2024 stood at Rs. 1,15,475.08 Lakhs.

Cost of material consumed:

During the year ending March 31, 2024 , cost of material consumed stood at Rs. 1,10,513.26 lakhs.

Purchase of stock-in-trade:

During the year ending March 31, 2024, purchase of stock in trade comprises of Rs. 1,934.21 lakhs.

Changes in inventories of WIP, packing material & finished goods:

During the year ending March 31, 2024, there was a change in inventory of Rs. (653.18) lakhs

Employee benefits expense:

Our Company has incurred Rs. 249.81 Lakhs as Employee benefits expense for the year ending March 31, 2024 .

Finance costs:

Finance costs for the year ending March 31, 2024 was Rs. 468.23 Lakhs.

Depreciation and Amortization Expenses:

Depreciation the year ending March 31, 2024 was Rs. 243.26 Lakhs.

Other Expenses:

Other Expenses the year ending March 31, 2024 stood at Rs. 2719.49 Lakhs.

Restated Profit before tax:

The Company reported Restated profit before tax the year ending March 31, 2024 of Rs. 1180.01 Lakhs.

Restated profit after tax:

The Company reported Restated profit after tax for the the year ending March 31, 2024 of Rs. 890.36 Lakhs.

In FY 2023-24, PAT margin of the company has increased mainly due to decrease in cost of material consumed. Total cost of material consumed was 96.75% of total revenue from operations in FY 2022-23, which has now decreased to 95.86% of total revenue from operations in FY 2023-24. Such decrease in cost was mainly on account of increase in import purchases, where, we got materials like Copper scrap birch cliff, Copper scrap telly birch, Copper scrap berry candy etc. at low cost compared to the domestic market. Till March 31, 2024 company had an import purchase of material up to 27.31% of total purchases which was only 0.90% and 9.34% of total purchases in F.Y. 2021-22 and 2022-23 respectively. This resulted into lower cost and higher PAT margin.

Financial Year 2024 Compared to Financial Year 2023 (Based on Restated Financial Statements)

Total Income:

Total income for the financial year 2023-24 stood at Rs. 1,16,655.09 Lakhs whereas in Financial Year 2022-23 the same stood at Rs. 1,15,039.91 Lakhs representing an increase of 1.40%. The main reason for increase in total income was due to increase in the sale of our products, majorly due to increase in sale of copper rods from Rs. 1,02,706.31 lakhs in FY 2022-23 to Rs. 1,04,562.48 lakhs in FY 2023-24, representing an increase of 1.81% and increase in sale of copper strips from Rs. 1,658.08 lakhs in FY 202223 to Rs. 2266.71 lakhs in FY 2023-24 representing an increase of 36.71%.

Revenue from Operations

During the financial year 2023-24, the net revenue from operation of our Company increased to Rs. 1,16,627.09 Lakhs as against Rs. 1,15,018.88 Lakhs in the Financial Year 2022-23 representing an increase of 1.40%. The main reason for increase in total revenue was due to increase in sale of copper rods from Rs. 1,02,706.31 lakhs in FY 2022-23 to Rs. 1,04,562.48 lakhs in FY 202324, representing an increase of 1.81% and increase in sale of copper strips from Rs. 1,658.08 lakhs in FY 2022-23 to Rs. 2266.71 lakhs in FY 2023-24 representing an increase of 36.71%.

Other Income:

During the financial year 2023-24, the other income of our Company increased to Rs. 28.00 Lakhs as against Rs. 21.03 lakhs in the Financial Year 2022-23 representing an increase of 33.14%. The increase in other income was majorly due to increase in interest income and rent income.

Total Expenses

The total expense for the financial year 2023-24 increased to Rs. 115475.08 Lakhs from Rs. 114284.42 lakhs in the Financial Year 2022-23 representing an increase of 1.04%. Such increase was due to increase in business operations of the Company like increase in employee benefit expenses from Rs. 229.44 lakhs in Fiscal 2023 to Rs. 249.81 Lakhs in Fiscal 2024 representing an increase of 8.88% and increase in other expenses from Rs. 2062.74 lakhs in fiscal 2023 to Rs. 2719.49 lakhs in fiscal 2024 representing an increase of 31.84% as compared with previous year.

Cost of goods sold

There was slight increase in Cost of goods to Rs. 111794.29 lakhs in F.Y 2023-24 from Rs. 111280.32 lakhs in F.Y 2022-23 representing increase of 0.46% which is in line with increase in sale of our products.

Employee benefits expense:

Our Company has incurred Rs. 249.81 Lakhs as Employee benefits expense during the financial year 2023-24 as compared to Rs. 229.44 Lakhs in the financial year 2022-23. The increase of 8.88% was mainly due to increase in salary, wages & incentive expense.

Finance costs:

These costs were for the financial Year 2023-24 decreased to Rs. 468.23 Lakhs as against Rs. 472.76 Lakhs during the financial year 2022-23. The decrease of 0.96% was due to decrease in the borrowings. The increase in borrowing cost was attributable due to decrease in borrowings of the company to Rs. 3491.74 lakhs in fiscal 2024 from Rs. 4646.82 lakhs in fiscal 2023.

Depreciation and Amortization Expenses:

Depreciation for the financial year 2023-24 stood at Rs. 243.26 Lakhs as against Rs. 239.16 Lakhs during the financial year 202223. The increase in depreciation was around 1.71% in comparison to the previous year.

Other Expenses:

Our Company has incurred Rs. 2719.49 Lakhs during the Financial Year 2023-24 on other expenses as against Rs. 2062.74 Lakhs during the financial year 2022-23. There was an increase of 31.84% mainly due to increase in expenses like custom duty expenses, import expenses, power & fuel expenses, Advertisement & Marketing expenses etc.

Restated profit before tax:

Net profit before tax for the financial year 2023-24 increased to Rs. 1180.01 Lakhs as compared to Rs. 755.49 Lakhs in the financial year 2022-23, which was majorly due to factors as mentioned above.

Restated profit for the year:

The Company reported Restated profit after tax for the financial year 2023-24 of Rs. 890.36 Lakhs in comparison to Rs. 560.27 lakhs in the financial year 2022-23. The increase of 58.92% was majorly due to factors mentioned above.

In FY 2023-24, PAT margin of the company has increased mainly due to decrease in cost of material consumed. Total cost of material consumed was 96.75% of total revenue from operations in FY 2022-23, which has now decreased to 95.86% of total revenue from operations in FY 2023-24. Such decrease in cost was mainly on account of increase in import purchases, where, we got materials like Copper scrap birch cliff, Copper scrap telly birch, Copper scrap berry candy etc. at low cost compared to the domestic market. Till March 31, 2024 company had an import purchase of material up to 27.31% of total purchases which was only 0.90% and 9.34% of total purchases in F.Y. 2021-22 and 2022-23 respectively. This resulted into lower cost and higher PAT margin.

Financial Year 2023 Compared to Financial Year 2022 (Based on Restated Financial Statements)

Total Income:

Total income for the financial year 2022-23 stood at Rs. 1,15,039.91 Lakhs whereas in Financial Year 2021-22 the same stood at Rs. 93,791.80 Lakhs representing an increase of 22.65%. The main reason for increase in total income was due to increase in the sale of our products, majorly due to increase in sale of copper rods from Rs. 83,209.07 lakhs in FY 2021-22 to Rs. 1,02,706.31 lakhs in FY 2022-23, representing an increase of 23.43% and increase in sale of copper wires from Rs. 6,667.98 lakhs in FY 202122 to Rs. 8,335.16 lakhs in FY 2022-23 representing an increase of 25.00%.

Revenue from Operations

During the financial year 2022-23, the net revenue from operation of our Company increased to Rs. 115018.88 Lakhs as against Rs. 93719.32 Lakhs in the Financial Year 2021-22 representing an increase of 22.73%. The main reason for increase in total income was due to increase in the sale of our products, majorly due to increase in sale of copper rods from Rs. 83,209.07 lakhs in FY 202122 to Rs. 1,02,706.31 lakhs in FY 2022-23, representing an increase of 23.43% and increase in sale of copper wires from Rs. 6,667.98 lakhs in FY 2021-22 to Rs. 8,335.16 lakhs in FY 2022-23 representing an increase of 25.00%.

Other Income:

During the financial year 2022-23, the other income of our Company decreased to Rs. 21.03 Lakhs as against Rs. 72.48 lakhs in the Financial Year 2021-22 representing a decrease of 70.99%. The decrease in other income was majorly due to decrease in interest income.

Total Expenses

The total expense for the financial year 2022-23 increased to Rs. 114284.42 Lakhs from Rs. 93227.27 lakhs in the Financial Year 2021-22 representing an increase of 22.59%. Such increase was due to increase in business operations of the Company. The cost of goods sold increased from Rs. 90,948.32 lakhs in Fiscal 2022 to Rs. 1,11,280.32 lakhs in Fiscal 2023 representing an increase of 22.36%, increase in employee benefit expenses from Rs. 156.05 lakhs to Rs. 229.44 Lakhs representing an increase of 47.03%, increase in finance cost from Rs. 290.79 Lakhs in Fiscal 2022 to Rs. 472.76 Lakhs in Fiscal 2023 representing an increase of 62.58% and increase in other expenses from Rs. 1612.13 lakhs in fiscal 2022 to Rs. 2062.74 lakhs in fiscal 2023 representing an increase of 27.95% as compared with previous year.

Cost of goods sold

Cost of goods increased to Rs. 1,11,280.32 lakhs in F.Y 2022-23 from Rs. 90,948.32 lakhs in F.Y 2021-22 representing increase of 22.36%. Such increase was due to increase in business operations of the Company. Total purchases of raw-material, packing material, stores & spares and purchase of stock in trade increased from Rs.92255.74 lakhs in FY 2021-22 to Rs. 112751.45 lakhs in FY 2022-23 representing an increase of 22.22% which is in line with increase in sale of our products.

Employee benefits expense:

Our Company has incurred Rs. 229.44 Lakhs as Employee benefits expense during the financial year 2022-23 as compared to Rs. 156.05 Lakhs in the financial year 2021-22. The increase of 47.03% was mainly due to increase in salary, wages & incentive expense.

Finance costs:

These costs were for the financial Year 2022-23 increased to Rs. 472.76 Lakhs as against Rs. 290.79 Lakhs during the financial year 2021-22. The increase of 62.58% was due to increase in the borrowings. The increase in borrowing cost was attributable due to increase in borrowings of the company to Rs. 4646.82 lakhs in fiscal 2023 from Rs. 2532.38 lakhs in fiscal 2022.

Depreciation and Amortization Expenses:

Depreciation for the financial year 2022-23 stood at Rs. 239.16 Lakhs as against Rs. 219.98 Lakhs during the financial year 2021-22. The increase in depreciation was around 8.72% in comparison to the previous year.

Other Expenses:

Our Company has incurred Rs. 2062.74 Lakhs during the Financial Year 2022-23 on other expenses as against Rs. 1612.13 Lakhs during the financial year 2021-22. There was an increase of 27.95% mainly due to increase in expenses like custom duty expenses, import expenses, power & fuel expenses, legal & professional fees, insurance expenses etc.

Restated profit before tax:

Net profit before tax for the financial year 2022-23 increased to Rs. 755.49 Lakhs as compared to Rs. 564.53 Lakhs in the financial year 2021-22, which was majorly due to factors as mentioned above.

Restated profit for the year:

The Company reported Restated profit after tax for the financial year 2022-23 of Rs. 560.27 Lakhs in comparison to Rs. 426.03 lakhs in the financial year 2021-22. The increase of 31.51% was majorly due to factors mentioned above.

In F.Y. 2022-23, PAT margin has increased only by 0.04% i.e. from 0.45% in FY 2021-22 to 0.49% in FY 2022-23. With increase in turnover, only variable expenses increase whereas fixed expenses remain the same. Hence, PAT amount increases in absolute terms, but margins are more or less same.

Information required as per Item 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 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 26 of 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

Other than as described in the sections "Risk Factors", "Our Business" and "Managements Discussion and Analysis of Financial Condition and Results of Operations" on pages 26, 100 and 187 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. Segment Reporting

Our business activity primarily falls within a single business and geographical segment, other than as disclosed in "Restated Financial Statements" on page 146 we do not follow any other segment reporting

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

Except as disclosed in the Chapter "Our Business", our Company has not announced any new product or service.

7. Seasonality of business

Our business is not subject to seasonality. For further information, see "Industry Overview" and "Our Business" on pages 88 and 100, respectively.

8. Dependence on single or few customers

Given the nature of our business operations, we do not believe our business is dependent on any single or a few customers

9. Competitive conditions

Competitive conditions are as described under the Chapters "Industry Overview" and "Our Business" beginning on pages 88 and 100 respectively of this Red Herring Prospectus.

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

After the date of last Balance sheet i.e. March 31, 2024, the following material events have occurred after the last audited period -

1) A special resolution has been passed by the shareholders at the Extra Ordinary General Meeting held on February 10, 2024 for change of name of our Company from "Sunlite Recycling Industries Private Limited" to "Sunlite Recycling Industries Limited" and a fresh certificate of incorporation was issued by the Registrar of Companies, Central Processing Centre vide its letter dated April 30, 2024.

2) The Issue has been authorized by the Board of Directors vide a resolution passed at its meeting held on May 01, 2024 and approved by the shareholders of our Company vide a special resolution at the Extra Ordinary General Meeting held on May 06, 2024 pursuant to section 62(1)(c) of the Companies Act, 2013.

3) Our company has approved the restated audited financial statements for financial year ending March 31 2024, March 31, 2023 and March 31, 2022 in the Board meeting dated July 20, 2024.

4) Our Company has approved the Draft Red Herring Prospectus vide resolution in the Board Meeting dated May 21, 2024.

5) Our Company has approved the Red Herring Prospectus vide resolution in the Board Meeting dated August 05, 2024.