Swasth Foodtech India Ltd Management Discussions

The following discussion is intended to convey managements perspective on our financial condition and results of operations for the period ended June 30, 2024 and the financial years ended March 31, 2024, 2023 and 2022. One should read the following discussion and analysis of our financialcondition and results of operations in connction with our section titled "Restated Financial Information " on page 166 of the Draft Prospectus. This discussion contains forward-looking statements and reflects our current views with respect to future events and our financial performance and involves numerous risks and uncertainties, including, but not limited to, those described in the section entitled "Risk Factors " on page 21 of this Draft Prospectus. Actual results could differ materially from those contained in any forward-looking statements andfor furtherdetails regarding forward-looking statements, kindly refer the chapter titled "Forward-Looking Statements" on page 15 of this Draft Prospectus. Unless otherwise stated, the financial information of our Company used in this section has been derived from the Restated Financial Information. Our financial year ends on March 31 of each year. Accordingly, unless otherwise stated, all references to a particular financial year are to the 12-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we ", "us " or "our " refers to Swasth Foodtech India Limited, our Company. Unless otherwise indicated, financial information included herein are based on our Restated Financial Statements for the period ended June 30, 2024 and the financial years ended March 31, 2024, 2023 and 2022 included in this Draft Prospectus beginningon page 166 of this Draft Prospectus

BUSINESS OVERVIEW

We are in the business of processing of rice bran oil from crude oil, for sale to oil manufacturers and packers. We manufacture various rice bran oil under various grades and colours, based on the requirement of our customers. We believe that rice bran oil is healthier than the other options available in the market, on account of it having an ideal balance of polyunsaturated fats and monounsaturated fats, in almost a 1:1 ratio. Since rice bran oil is made from bran, it is rich in Vitamin E, an antioxidant. We have crafted our business model in such a manner that we market and sell, our finished products, being rice bran oil, as well as the residue and waste material collected while processing our products. Therefore, we also market and sell, fatty acid, gums, spent earth and wax to other oil manufacturers or in the open market.

Processing of rice bran oil mainly involves refining the extracted crude rice bran oil. Our Company have capacity of 125 MT per day as on the date of this Draft Prospectus. We own and operate one manufacturing facility in Burdwan, in the State of West Bengal, which is strategically located in India. Our manufacturing facility has a refining unit which enables integrated processing of rice bran oil. At present, we process rice bran oil for third parties and sell our products in bulk form to third party brands and oil manufacturers. We intend to utilise a portion of the Net Proceeds towards setting up of a packaging unit at our existing manufacturing unit, to package, brand and sell our products under our own brands in smaller quantities to small retailers, warehousing agents, directly for sale to end use customers. We believe that setting up a packaging unit will provide us the ability of (i) building our own brand and (ii) scaling our operations by adding additional products as part of our product portfolio, thus contributing immensely towards our business operations and market position.

For detailed information on the business of our Company please refer to "Our Business" beginning on page numbers 112 of this Draft Prospectus.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST AUDITED FINANCIALS

After the date of last Audited Accounts i.e. for the period ended June 30, 2024, the Directors of our Company confirm that, there have not been any significant material developments.

FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factor" beginning on page 21 of this Draft Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

• We depend on a few customers for our products, for a significant portion of our revenue, and any decrease in revenues or sales from any one of our key customers may adversely affect our business and results of operations.

• We generate our major portion of sales from our operations in certain geographical regions. Any adverse developments affecting our operations in these regions could have an adverse impact on our revenue and results of operations.

• We have a limited operating history in respect of our products, which may make it difficult for investors to evaluate our business and prospects.

• Our business is dependent on the sale of our products to certain oil manufacturers with whom our Company has not entered into any long-term agreements purchasing our Rice Bran Oil. The loss of such customers, a significant reduction in purchases by such customers, or a lack of commercial success of their product of which we are a major supplier could materially adversely affect our business, results of operations and financial condition.

• We derive significant portion of our revenues from the sale of by-products derived during the processing of rice bran oil and any reduction in demand from its consumers could have an adverse effect on our business, results of operations and financial condition.

• We highly depend on our key raw material and a few key suppliers who help us procure the same. Our Company has not entered into long-term agreements with its suppliers for supply of raw materials. In the event we are unable to procure adequate amounts of raw materials, at competitive prices our business, results of operations and financial condition may be adversely affected.

• Our products are in the nature of commodities, and their prices are subject to fluctuations that may affect our profitability.

• All of our experience in respect of our business operations is limited to manufacturing of rice bran oil and therefore our Company has limited experience of packaging its products and selling them on a retail basis. Hence, we have limited exposure in operating a packaging line and marketing our products outside to retail customers, which may make it difficult to evaluate our past performance and prospects with respect to the same.

• There can be no assurance that the objects of the Issue will be achieved within the time frame anticipated or at all, or that the deployment of the Net Proceeds in the manner intended by us will result in any increase in the value of your investment. Further, the plan for deployment of the Net Proceeds has not been appraised by any bank or financial institution.

• Our Company is yet to place orders for 100% of the plant and machinery. Any delay in placing orders or procurement of such plant and machinery or variation in foreign exchange rate, may further delay the schedule of implementation and increase the cost of commissioning the manufacturing unit.

DISCUSSION ON RESULT OF OPERATION

Our Significant Accounting Policies

For Significant accounting policies please refer Significant Accounting Policies, under Chapter titled "Restated Financial Statements"beginning on page 166 of the Draft Prospectus.

Overview of Revenue & Expenditure

Our revenue and expenses are reported in the following manner:

Revenues

• Revenue of operations

Our Companys revenue is primarily generated from the sale of Rice Bran Refined Oil manufactured by us, by-products derived from Rice Bran during manufacturing of rice bran refined oil, and trading sales of rice bran crude oil.

? Other Income

Our other income mainly consists of interest income, discount received, subsidy income and other income. The below table show our revenue for the period ended June 30, 2024 and fiscal 2024, 2023 and 2022:

Particulars	Period ended	For the period ended
	June 30, 2024	March 31, 2024	March 31, 2023	March 31, 2022
Income
Revenue from Operations	4,035.22	13,324.98	9,989.64	122.10
% of total revenue	99.63%	99.20%	99.96%	99.61%
Other income	14.83	107.19	3.91	0.48
% of total revenue	0.37%	0.80%	0.04%	0.39%
Total Revenue	4,050.05	13,432.17	9,993.55	122.58

Expenditure

Our total expenditure primarily consists of cost of purchases of traded goods, cost of materials consumed, changes in inventories of finished goods, work-in-progress and stock-in-trade, employee benefits expenses, finance cost, depreciation and amortization and other expenses.

? Purchases of traded goods

This represents purchases of Rice Bran Crude Oil, Maize, Fatty and Husk. These are purchased for resale.

? Cost of materials consumed

This represents cost of materials consumed comprises of rice bran crude oil, husk and other chemical.

? Changes in inventories of finished goods, work-in-progress and stock-in-trade

This relates to the changes in inventories of finished goods, work-in-progress and stock-in-trade.

? Employment Benefit Expenses

It includes salaries, wages, bonus and allowances, directors remuneration, contributions to welfare funds, provision for gratuity and other expenses.

? Other Expenses

It includes Power & Fuel, Auditors Remuneration, Bank Charges, Freight Outward, Insurance, Rates & Taxes, License Fees, Office Expense, Printing & Stationery, Preliminary Expenses, Professional Fees, Filing fees, Travelling and Conveyance, Sundry balance written off, Commission & Brokerage, Settlement Charges, Lab Expenses, Repair & Maintenance of Machinery, Repair & Maintenance of Building, Miscellaneous Expenses, Interest on delay payment of statutory dues.

? Finance Costs

Our finance costs mainly include processing charges and interest.

? Depreciation

Depreciation includes depreciation and amortization. RESULTS OF OUR OPERATION

Particulars	30th June, 2024	31st March, 2024	31st March, 2023	31st March, 2022
Incomes:
Revenue from Operations	4,035.22	13,324.98	9,989.64	122.10
% of total revenue	99.63%	99.20%	99.96%	99.61%
% Increase/(Decrease)		33.39%	8081.58%	-
Other income	14.83	107.19	3.91	0.48
% of total revenue	0.37%	0.80%	0.04%	0.39%
% Increase/(Decrease)	-	2643.18%	708.90%	-
Total Revenue	4,050.05	13,432.17	9,993.55	122.58
% Increase/(Decrease)	-	34.41%	8052.53%	-
Expenses:
Purchases of Traded Goods	345.83	606.56	1,795.62	96.99
% of total revenue	8.54%	4.52%	17.97%	79.12%
% Increase/(Decrease)	-	(66.22%)	1751.43%	-
Cost of Material Consumed	3,377.48	12,186.25	9,233.75	-
% of total revenue	83.39%	90.72%	92.40%	-
% Increase/(Decrease)	-	31.98%	-	-
Changes in Inventory of Finished Goods, Work in Progress & Stock in trade	96.41	(47.82)	(1,430.41)
% of total revenue	2.38%	-0.36%	(14.31%)	-
% Increase/(Decrease)	-	(96.66%)	-	-
Employee Benefit expenses	5.15	23.20	24.08	-
% of total revenue	0.13%	0.17%	0.24%	-
% Increase/(Decrease)	-	(3.65%)	-	-
Other Expenses	54.81	191.79	180.57	23.17
% of total revenue	1.35%	1.43%	1.81%	18.90%
% Increase/(Decrease)	-	6.21%	679.24%	-
Total Expense	3,879.67	12,959.98	9,803.62	120.16
% of total revenue	95.79%	96.48%	98.10%	98.02%
% Increase/(Decrease)	-	32.20%	8058.88%	-
Profit before Interest, Depreciation and Tax	170.38	472.19	189.93	2.42
% of total revenue	4.21%	3.52%	1.90%	1.98%
Depreciation and amortization Expenses	17.29	68.86	51.79	-
% of total revenue	0.43%	0.51%	0.52%	-
% Increase/(Decrease)	-	32.97%	-	-
Profit before Interest and Tax	153.09	403.33	138.14	2.42
% of total revenue	1.14%	3.00%	1.38%	1.98%
Financial Cost	46.56	187.52	117.33	0.90
% of total revenue	1.15%	1.40%	1.17%	0.74%
% Increase/(Decrease)	-	59.82%	12870.86%	-
Profit before Tax and Extraordinary Expenses*	106.53	215.81	20.81	1.52
% of total revenue	2.63%	1.61%	0.21%	1.24%
Extraordinary Expenses	-	-	-	-
% of total revenue	-	-	-	-
% Increase/(Decrease)	-	-	-	-
Restated Profit/(Loss) before tax	106.53	215.81	20.81	1.52
% of total revenue	2.63%	1.61%	0.21%	1.24%
% Increase/(Decrease)	-	936.93%	1270.27%	-
Tax expenses/(income)
Current and earlier years Tax	16.06	10.55	0.04	0.38
Deferred Tax	2.22	12.02	18.09	-
Total tax expenses	18.28	22.57	18.13	0.38
% of total revenue	0.45%	0.17%	0.18%	0.31%
Restated profit/(loss) after Tax	88.25	193.24	2.68	1.14
% of total revenue	2.18%	1.44%	0.03%	0.93%
% Increase/(Decrease)	-	7100.28%	136.13%	-

* includes other income

Our income is dependent upon few major intermediaries, details of the same is as following:

Particulars	June 30, 2024		Fiscal 2024		Fiscal 2023		Fiscal 2022
	Amount	Percentage (%)	Amount	Percentage (%)	Amount	Percentage (%)	Amount	Percentage (%)
Top 10 customers	2,630.3	65.18%	7,234.61	54.29%	5,495.82	55.02%	122.10	100.00%

Capacity utilised

Financial Year	Installed Capacity (in MTPA)	Utilized Capacity (in MTPA)	Percentage of utilization (%)
2021-2022	37,500	-
2022-2023	37,500	9,093.85	24.25%
2023-2024	37,500	17,607.54	46.95%
June 30, 2024	9,375	4,758.00	50.75%

A break up of the revenue earned from sale of rice bran oil and its by-products during the preceding three years and the three months period ended June 30, 2024 has been provided below:

Customers	Three month period ended June 30, 2024		Fiscal
			2024		2023		2022
	Revenue earned in (? in lakhs)	% of total revenue	Revenue earned in (Rs in lakhs)	% of total revenue	Revenue earned in (Rs in lakhs)	% of total revenue	Revenue earned in (Rs in lakhs)	% of total revenue
Rice bran oil	3,458.49	85.71%	11,717.03	87.93%	7,490.15	74.98%	-	0.00%
By-products	238.55	5.91%	955.19	7.17%	656.03	6.57%	-	0.00%

REVIEW OF OPERATIONS FOR THE PERIOD ENDED JUNE 30, 2024 Income from Operations

Our revenue from operations for the three months ended June 30, 2024 was t 4,035.22 Lakhs which was about 99.63% of the total revenue and which comprises of revenue from sale of Rice Bran Refined Oil manufactured by us, byproducts derived from Rice Bran during manufacturing of rice bran refined oil, and trading sales of rice bran crude oil. The overall turnover has been increased with the growth in volume of operations of the Company based on the past performance of the Company.

Other Income

Our other income for the period ended June 30, 2024 was ? 14.83 Lakhs which was about 0.37% of the total revenue and which includes subsidy income, discount received and interest income.

Expenditure

Purchases of traded goods

The Cost of Purchases of traded goods for the period ended June 30, 2024 were ? 345.83 Lakhs which was about 8.54% of the total revenue. This represent the purchase of Rice Bran Crude Oil, Maize, Fatty and Husk for resale.

Cost of materials consumed

The Cost of materials consumed for the period ended June 30, 2024 were ? 3,377.48 Lakhs which was about 83.39% of the total revenue.

Changes in inventories of finished goods, work-in-progress and stock-in-trade

The changes in inventories of finish goods & work-in-progress for the period ended June 30, 2024 were ? 96.41 Lakhs. Employee Benefits expenses

The employee benefits expenses for the period ended June 30, 2024 were ? 5.15 Lakhs which was about 0.13% of the total revenue and which includes salaries, wages, bonus and allowances, contributions to welfare funds, provision for gratuity and other expenses.

Other Expenses

Other Expenses for the period ended June 30, 2024 were ? 54.81 Lakhs which was about 1.35% of the total revenue and which includes Power & Fuel, Auditors Remuneration, Bank Charges, Freight Outward, Insurance, Rates & Taxes, License Fees, Office Expense, Printing & Stationery, Preliminary Expenses, Professional Fees, Filing fees, Travelling and Conveyance, Sundry balance written off, Commission & Brokerage, Settlement Charges, Lab Expenses, Repair & Maintenance of Machinery, Repair & Maintenance of Building, Miscellaneous Expenses, Interest on delay payment of statutory dues.

EBIDTA

Our EBITDA for the period ended June 30, 2024 were ? 170.38 Lakhs. The growth in EBIDTA is the result of better capacity utilization and higher realisation on sale of refined oil during the period ended June 30, 2024.

Financial Costs

Financial costs for the period ended June 30, 2024 were ? 46.56 Lakhs which was about 1.15% of the total revenue and which consists of interest and other finance charges.

Depreciation

Depreciation for the period ended June 30, 2024 were ? 17.29 Lakhs which was about 0.43% of the total revenue and

which consists of depreciation and amortization expenses.

Profit /(Loss) after Tax

PAT for the fiscal year ended June 30, 2024 was ? 88.25 Lakhs which is about 2.18% of the revenue. The growth in EBIDTA is the result of better capacity utilization and higher realisation on sale of refined oil during the period ended June 30, 2024.

REVIEW OF OPERATIONS FOR THE PERIOD ENDED MARCH 31, 2024 Income from Operations

Our revenue from operations for the fiscal year ended March 31, 2024 was ? 13,324.98 Lakhs which was about 99.20% of the total revenue and which comprises of revenue from sale of Rice Bran Refined Oil manufactured by us, byproducts derived from Rice Bran during manufacturing of rice bran refined oil, and trading sales of rice bran crude oil. The FY2023 was the first year of operation and the company has started operation in the month of June 2022. The growth in the turnover is the result of better capacity utilization in FY2024.

Other Income

Our other income for the fiscal year ended March 31, 2024 was ? 107.19 Lakhs which was about 0.80% of the total revenue and which includes subsidy income, discount received and interest income.

Expenditure

Purchases of traded goods

The Cost of Purchases of traded goods for the period ended March 31, 2024 were ? 606.56 Lakhs which was about 4.52% of the total revenue.

Cost of materials consumed

The Cost of materials consumed for the period ended March 31, 2024 were ? 12,186.25 Lakhs which was about 90.72% of the total revenue.

Changes in inventories of finished goods, work-in-progress and stock-in-trade

The changes in inventories of finish goods & work-in-progress for the period ended March 31, 2024 were ? (47.82) Lakhs.

Employee Benefits expenses

The employee benefits expenses for the fiscal year ended March 31, 2024 were ? 23.20 Lakhs which was about 0.17% of the total revenue and which includes salaries, wages, bonus and allowances, directors remuneration, contributions to welfare funds, provision for gratuity and other expenses.

Other Expenses

Other Expenses for the fiscal year ended March 31, 2024 were ? 191.79 Lakhs which was about 1.43% of the total revenue and which includes Power & Fuel, Auditors Remuneration, Bank Charges, Freight Outward, Insurance, Rates & Taxes, License Fees, Office Expense, Printing & Stationery, Preliminary Expenses, Professional Fees, Filing fees, Travelling and Conveyance, Sundry balance written off, Commission & Brokerage, Settlement Charges, Lab Expenses, Repair & Maintenance of Machinery, Repair & Maintenance of Building, Miscellaneous Expenses, Interest on delay payment of statutory dues.

EBIDTA

Our EBITDA for the fiscal year ended March 31, 2024 were ? 472.19 Lakhs.

Financial Costs

Financial costs for the period ended March 31, 2024 were ? 187.52 Lakhs which was about 1.40% of the total revenue and which consists of interest and other finance charges.

Depreciation

Depreciation for the fiscal year ended March 31, 2024 were ? 68.86 Lakhs which was about 0.51% of the total revenue and which consists of depreciation and amortization expenses.

Profit /(Loss) after Tax

PAT for the fiscal year ended March 31, 2024 was ? 215.81 Lakhs.

FISCAL YEAR ENDED MARCH 31, 2024 COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2023

Income

Total revenue has increased by ? 3,335.34 Lakhs and 33.39%, from ? 9,989.64 Lakhs in the fiscal year ended March 31, 2023 to ? 13,324.98 Lakhs in the fiscal year ended March 31, 2024. The increase in revenue was on account of increase in production and sale of finish product. Total revenue comprises of revenue from sale of Rice Bran Refined Oil manufactured by us, by-products derived from Rice Bran during manufacturing of rice bran refined oil, and trading sales of rice bran crude oil. The FY2023 was the first year of operation and the company has started operation in the month of June 2022. The growth in the turnover is the result of better capacity utilization in FY2024.

Expenditure

Total Expenditure increased by ? 3,243.62 Lakhs and 32.52%, from ? 9,972.74 Lakhs in the fiscal year ended March 31, 2023 to ? 13,216.36 Lakhs in the fiscal year ended March 31, 2024. Overall expenditure was increased mainly due to increase in production.

Purchases of traded goods

Purchases of traded goods decreased by ? 1,189.06 Lakhs and 66.22%, from ? 1,795.62 Lakhs in the fiscal year ended March 31, 2023 to ? 606.56 Lakhs in the fiscal year ended March 31, 2024. The FY2023 was the first year of operation and the company has started operation in the month of June 2022. Thus, in FY 2023 first quarter the company has undertaken trading in Rice Bran Crude Oil, Maize, Fatty and Husk, and with the commencement of manufacturing unit the volume of traded goods decreased significantly.

Cost of materials consumed

Cost of materials consumed decreased by ? 2,952.50 Lakhs and 31.98%, from ? 9,233.75 Lakhs in the fiscal year ended March 31, 2023 to ? 12,186.25 Lakhs in the fiscal year ended March 31, 2024. Cost of materials consumed is increased on account of increase in production and capacity utilisation.

Changes in inventories of finished goods, work-in-progress and stock-in-trade

Changes in inventories of finished goods, work-in-progress and stock-in-trade was ? (47.82) Lakhs in the fiscal year

ended March 31, 2024 as against ? (1,430.41) Lakhs the fiscal year ended March 31, 2023. The decrease in changes in Inventories of finish goods, work-in-progress and finish goods was because of higher sale of finished product and lower inventory level.

Employee Benefit Expenses

Employee Benefit Expenses in terms of value and percentage decreased by ?0.88 Lakhs and 3.65% from ? 24.08 Lakhs in the fiscal year ended March 31, 2023 to ? 23.20 Lakhs in the fiscal year ended March 31, 2024. Overall employee cost was decreased is due to lesser no. of working days.

Other Expenses

Other Expenses in terms of value and percentage increased by ? 11.22 Lakhs and 6.21% from ? 180.57 Lakhs in the fiscal year ended March 31, 2023 to ? 191.79 Lakhs in the fiscal year ended March 31, 2024. The increase was mainly on account of cost of Power & Fuel, Auditors Remuneration, Bank Charges, Freight Outward, Insurance, Rates & Taxes, License Fees, Office Expense, Printing & Stationery, Preliminary Expenses, Professional Fees, Filing fees, Travelling and Conveyance, Sundry balance written off, Commission & Brokerage, Settlement Charges, Lab Expenses, Repair & Maintenance of Machinery, Repair & Maintenance of Building, Miscellaneous Expenses, Interest on delay payment of statutory dues.

EBIDTA

Profit before Interest, Depreciation and Tax has increased by ? 282.26 Lakhs and 148.61% from ? 189.93 Lakhs in the fiscal year ended March 31, 2023 to ? 472.19 Lakhs in the fiscal year ended March 31, 2024. Profit before Interest, Depreciation and Tax was increased due to increase in price realization of refined oil, higher capacity utilization resulting in economic of scale in the fiscal year ended March 31, 2024 as against in fiscal 2023. This has resulted in increased profitability.

Finance Costs

Finance Costs in terms of value and percentage increased by ? 70.19 Lakhs and 59.82% from ? 117.33 Lakhs in the fiscal year ended March 31, 2023 to ? 187.52 Lakhs in the fiscal year ended March 31, 2024. Finance Costs was increased mainly due to higher interest outgo on increased borrowings.

Depreciation & Amortization Expenses

Depreciation in terms of value increased by ? 17.07 Lakhs and 32.97% from ? 51.79 Lakhs in the fiscal year ended March 31, 2023 to ? 68.86 Lakhs in the fiscal year ended March 31, 2024. Increase in depreciation is due to increase in assets andis general in nature.

Net Profit after Tax

Net Profit has increased by ? 190.56 Lakhs and 7100.28% from ? 2.68 Lakhs in the fiscal year ended March 31,

2023 to ? 193.24 Lakhs in the fiscal year ended March 31, 2024. Net profit was increased due to increase in price realization of refined oil, higher capacity utilization resulting in economic of scale in the fiscal year ended March 31, 2024 as against in fiscal 2023. This has resulted in increased profitability.

FISCAL YEAR ENDED MARCH 31, 2023 COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2022

Income

Total revenue has increased by ? 9,867.54 Lakhs and 8081.58%, from ? 122.10 Lakhs in the fiscal year ended March 31, 2022 to ? 9,989.64 Lakhs in the fiscal year ended March 31, 2023. The increase in revenue was on account of increase in production and sale of finish product. Total revenue comprises of revenue from sale of Rice Bran Refined

Oil manufactured by us, by-products derived from Rice Bran during manufacturing of rice bran refined oil, and trading sales of rice bran crude oil. The FY2023 was the first year of operation and the company has started operation in the month of June 2022. There was no sale of manufactured goods in FY2022. Thus the FY2022 and FY2023 is not comparable.

Expenditure

Total Expenditure increased by ? 9,851.67 Lakhs and 8137.62%, from ? 121.06 Lakhs in the fiscal year ended March 31, 2022 to ? 9,972.74 Lakhs in the fiscal year ended March 31, 2023. The FY2023 was the first year of operation and the company has started operation in the month of June 2022. There was no manufacturing activity in FY2022. Thus, the FY2022 and FY2023 is not comparable.

Purchases of traded goods

Purchases of traded goods increased by ? 1,698.64 Lakhs and 1751.43%, from ? 96.99 Lakhs in the fiscal year ended March 31, 2022 to ? 1,795.62 Lakhs in the fiscal year ended March 31, 2023. Purchases of traded goods on account of increase in trading activity. The FY2023 was the first year of operation and the company has started operation in the month of June 2022. There was no manufacturing activity in FY2022. Thus, the FY2022 and FY2023 is not comparable.

Cost of materials consumed

Cost of materials consumed increased by ? 9,233.75 Lakhs, from ? nil in the fiscal year ended March 31, 2022 to ? 9,233.75 Lakhs in the fiscal year ended March 31, 2023. Cost of materials consumed on account of increase in consumption of raw materials in production. The FY2023 was the first year of operation and the company has started operation in the month of June 2022. There was no manufacturing activity in FY2022. Thus, the FY2022 and FY2023 is not comparable.

Changes in inventories of finished goods, work-in-progress and stock-in-trade

Changes in inventories of finished goods, work-in-progress and stock-in-trade were nil in the fiscal year ended March 31, 2022 and ? (1,430.41) in the fiscal year ended March 31, 2023. Changes in inventories of finished goods, work- in-progress and stock-in-trade was on account of higher inventory in hand with the commencement of production.

Employee Benefit Expenses

Employee Benefit Expenses in terms of value and percentage increased by ? 24.08 Lakhs from Nil in the fiscal year ended March 31, 2022 to ? 24.08 Lakhs in the fiscal year ended March 31, 2023. Overall employee cost was increased with the commencement of commercial operations, increase in staff strength and general increment in salary and incentives to employees.

Other Expenses

Other Expenses in terms of value and percentage increased by ? 157.40 Lakhs and 679.24% from ? 23.17 Lakhs in the fiscal year ended March 31, 2022 to ? 180.57 Lakhs in the fiscal year ended March 31, 2023. The increase was on account of commencement of commercial operations.

EBIDTA

Profit before Interest, Depreciation and Tax has increased by ? 187.51 Lakhs and 7737.29% from ? 2.42 Lakhs in the fiscal year ended March 31, 2022 to ? 189.93 Lakhs in the fiscal year ended March 31, 2023. Profit before Interest, Depreciation and Tax was increased due to better price realization and commencement of commercial operations. The FY2023 was the first year of operation and the company has started operation in the month of June 2022. There was no sale of manufactured goods in FY2022. Thus the FY2022 and FY2023 is not comparable.

Finance Costs

Finance Costs in terms of value and percentage increased by ? 116.43 Lakhs and 12870.86% from ? 0.90 Lakhs in the fiscal year ended March 31, 2022 to ? 117.33 Lakhs in the fiscal year ended March 31, 2023. Finance Costs was decreased mainly due to lower interest outgo on borrowings.

Depreciation & Amortization Expenses

Depreciation in terms of value increased by ? 51.79 Lakhs from nil Lakhs in the fiscal year ended March 31, 2022 to ? 51.79 Lakhs in the fiscal year ended March 31, 2023. Increase in depreciation is due to increase in assets andis general in nature.

Net Profit after Tax

Net Profit has increased by ? 1.55 Lakhs and 136.13% from ? 1.14 Lakhs in the fiscal year ended March 31, 2022 to ? 2.68 Lakhs in the fiscal year ended March 31, 2023. The Net Profit was increased due to better price realization and commencement of commercial operations. The FY2023 was the first year of operation and the company has started operation in the month of June 2022. There was no sale of manufactured goods in FY2022. Thus the FY2022 and FY2023 is not comparable.

Cash Flows

Particulars	For the Period ended June 30, 2024	For the year ended March 31,
		2024	2023	2022
Net Cash from Operating Activities	498.66	36.08	(1227.61)	5.11
Net Cash from Investing Activities	(17.23)	(5.51)	(140.08)	(1089.96)
Net Cash used in Financing Activities	(458.44)	(102.93)	1473.09	1089.92

Cash Flows from Operating Activities

Net cash from operating activities for Period ended June 2024 was at ? 498.66 lacs as compared to the EBIDTA at ?170.38 lacs Net cash from operating activities for fiscal 2024 was at ? 36.08 lacs as compared to the EBIDTA at ?472.19 lacs, while for fiscal 2023, net cash from operating activities was at ?(1227.61) lacs as compared to the EBIDTA at ?189.93 lacs. For fiscal 2022, the net cash from operating activities was ?5.11 lacs compared to EBIDTA of t 2.42 lacs.

Cash Flows from Investment Activities

Net cash from Investing activities for Period ended June 2024 was at ? (17.23) lacs. Net cash from investing activities for the fiscal 2024 was ? (5.51) lacs. This negative cash outflow is attributed to increase in investment in plant and equipments. Net cash from investing activities was at ? (140.08) lacs and ?(1089.96) lacs and in the fiscal 2023 and 2022 attributed to increase in investment in plant and equipments.

Cash Flows from Financing Activities

Net cash from Financing activities for Period ended June 2024 was at ? (458.44) lacs Net cash from financing activities for fiscal 2024 was at ? (102.93) lacs. The negative cash flow was on account of higher interest outgo and repayment of loan. In fiscal 2023 was ? 1473.09 lacs due increased loans and borrowings. For fiscal 2022, the net cash from financing activities was ? 1089.92 lacs on account of loans and borrowings and proceeds from issue of equity shares.

OTHER MATTERS

1. Unusual or infrequent events or transactions

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

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

Other than as described in the Section titled "FinancialInformation" and chapter titled "Managements Discussion and Analysis of Financial Conditions and Results of Operations", beginning on Page 166 and 209 respectively of this Draft 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

Other than as described in the chapter titled "Risk Factors" and "Managements Discussion and Analysis of Financial Conditions and Result of Operations", beginning on Page 21 and 209 respectively of this Draft Prospectus, best to our knowledge there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our company from continuing operations.

4. Future relationship between Costs and Income

Other than as described in the chapter titled "Risk Factors" beginning on Page 21 of this Draft Prospectus, best to our knowledge there are no factors, which will affect the future relationship between costs and income or which are expected to have a material adverse impact on our operations and finances.

5. Competition Conditions

Our Industry is fragmented consisting of large established players and small niche players. We compete with organized as well as unorganized sector on the basis of availability of product, price and product range. Further, there are no entry barriers in this industry and any expansion in capacity of existing manufacturers would further intensify competition. Industry is very competitive and we expect competition to continue and likely to increase in the future.