Technichem Organics Ltd Management Discussions

OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS

The following discussion and analysis of our financial condition and results of operations for the Fiscal Years 2024, 2023, and 2022 is based on, and should be read in conjunction with, our Restated Financial Statements, including the schedules, notes and significant accounting policies thereto, included in the chapter titled "Restated Financial Statements " beginning on page 188 of this Draft Red Herring Prospectus. Our Restated Financial Statements have been derived from our audited financial statements and restated in accordance with the SEBI ICDR Regulations and the ICAI Guidance Note. Our financial statements are prepared in accordance with AS.

You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in this Draft Red Herring Prospectus. You should also read the section titled "Risk Factors " beginning on page 30 of this Draft Red Herring Prospectus, which discusses a number of factors, risks and contingencies that could affect our financial condition and results of operations. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year are to the twelve-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we ", "us " or "our " refers to Technichem Organics Limited, our Company. Unless otherwise indicated, financial information included herein are based on our "Restated Financial Statements" for the Financial Years 2024, 2023, and 2022 included in this Draft Red Herring Prospectus beginning on page 188 of this Draft Red Herring Prospectus.

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

BUSINESS OVERVIEW

Our Company is mainly engaged in the business of manufacturing of a wide range of chemicals, Pyrazoles, Pyrazolones, Speciality Chemicals, Pigment & Dye Intermediates and Air Oxidation Chemistry that serves multiple industries, including pharmaceuticals, agriculture, coatings, pigments, dyes and others. This wide array of end uses highlights the extensive and versatile nature of our product offerings. Our extensive and varied portfolio ensures that we are not confined to one sector. This strategic diversification safeguards us from potential downturns in any single market, providing stability and resilience.

Our Company boasts a global presence, operating in around 11 countries. This extensive international footprint provides us with a broad perspective on market dynamics, enabling us to make informed decisions and better judge market trends. A significant portion of our exports is directed to China, highlighting the exceptional capabilities of our R&D team in synthesizing molecules cost-effectively. This not only underscores our price competitiveness in the global market but also demonstrates our ability to deliver high-quality products at competitive prices. Moreover, our ability to navigate across different chemical processes and applications allows us to meet a wide array of customer needs. This versatility broadens our market presence and enhances our adaptability to changing market conditions and emerging trends.

Our Company is customer centric, values based, R&D driven chemical manufacturer. Our commitment to quality is further demonstrated by our ISO 9001:2015 certification in Quality Management System and ISO 14001:2015 in Environmental Management System. As an ISO certified company, we prioritize quality and precision in crafting chemical compounds and raw materials tailored for agrochemical, coating, pharma, dyes, pigments and specialty chemicals industries. With manufacturing under one roof, our company maintains stringent quality control standards throughout the entire manufacturing process. By doing so, we ensure that our products meet the relevant quality standards before they reach the market.

Furthermore, our staff ensures the reliability and credibility of our laboratory results and services. With their expertise, we maintain precision, adhere to protocols, and deliver results in a timely manner, all of which are paramount in our industries. Having these resources and capabilities in-house allows our Company to support various aspects of product development, quality control, and regulatory compliance.

Technichem always emphasis on importance to environment friendly atmosphere and leading to green technology. To maintain the same, we have primary and secondary treatment facilities backed by multiple effect evaporator for environment management system. As per the need of an hour, improvement is endless process and accepting the same, we have research and development center where we keep on developing the products and improving the process and yield of existing products.

Our approach is supported by a strong commitment to research and development. By continuously investing in the improvement of our products and optimizing the synthesis routes for existing ones, we maintain our competitive edge and expand our market reach. This dedication to R&D helps minimize our exposure to fluctuations in any particular industry.

Since 1996, we have started our journey with the production of pyrazolones & pyrazoles and as & when times goes by, we have developed & commercialize intermediates for multiple applications. We are having manufacturing capacity of 9,50,000 kg per annum as on the date of this Draft Red Herring Prospectus, we have three plants at our factory and our factory area is spreaded in 26,079 squares meters. We are well-equipped to meet the growing demands of our customers and deliver products in a timely manner. Our manufacturing facilities adhere to rigorous quality control measures and industry best practices.

We currently have our manufacturing facility located at Survey No. 342, 346 and 347, Village - Lunej, Khambhat-Golana Road, District - Anand, Gujarat - 388620, Gujarat, India. The total area of the facility is approximately 26,079 square meters. Our manufacturing facilities are well equipped with the required facilities including machinery, other handling equipments to facilitate smooth manufacturing process. We endeavour to maintain safety in our premises by adhering to key safety norms, established through our regular health check-ups and safety manual, accompanied by regular safety meetings. For further details, please refer chapter titled "Our Business" on page 131 of this Draft Red Herring Prospectus.

Key Performance Indicators of our Company.

Key Financial Performance	For the Financial Year ended
	March 31, 2024	March 31, 2023	March 31, 2022
Revenue from Operations (1)	4,639.11	5,035.79	6,702.06
EBITDA (2)	952.88	435.78	547.83
EBITDA Margin (%)(3)	20.54%	8.65%	8.17%
PAT	472.68	172.93	342.06
PAT Margin (%)(4)	10.19%	3.43%	5.10%
Return on Equity (%)(5)	27.39%	12.33%	32.44%
Debt to Equity Ratio (times) (6)	0.90	1.05	0.77
Current Ratio (times) (7)	1.06	0.68	0.89

As certified by M/s. Mundra & Co, Chartered Accountants by their certificate dated August 08, 2024.

Explanation of KPIs:

(1) Revenue from operations means the revenue from operations as appearing in the restated financial information.

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

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

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

(5) Return on Equity is calculated by comparing the proportion of net income against the amount of average shareholder equity.

(6) Debt to Equity ratio is calculated as Long-Term Debt + Short Term Debt divided by equity.

(7) Current Ratio is calculated by dividing Current Assets to Current Liabilities.

SIGNIFICANT DEVELOPMENTS AFTER MARCH 31, 2024

In the opinion of the Board of Directors of our Company, since March 31, 2024, there have not arisen any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months.

1. The Shareholders of our Company has approved to increase the authorised share capital in their meeting held on April 12, 2024 from Rs 3,00,00,000 /- divided into 30,00,000 Equity Shares of Rs10/- each to Rs 18,00,00,000 /- divided into 1,80,00,000 equity shares of Rs10/- each.

2. The Board of Directors pursuant to a resolution dated April 18, 2024 have approved the allotment of 1,01,85,000 Bonus Equity Shares in the ratio of 4 equity shares for every 1 existing fully paid-up Equity Shares held.

3. The status of the Company changed to Public Limited and the name of the Company was changed to " Technichem Organics Limited vide Special Resolution passed by the Shareholders at the Extra-Ordinary General Meeting of the Company held on April 30, 2024. The fresh Certificate of Incorporation consequent to conversion was issued on July 04, 2024, by Centralised Processing Centre

4. The Board of our Company has approved to raise funds through Initial Public Offering in the board meeting held on July 17, 2024.

5. The members of our Company approved proposal of Board of Directors to raise funds through initial public offering in the EOGM held on July 17, 2024.

FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our financial performance and results of operations are influenced by a number of important factors, some of which are beyond our control, including without limitation, intense domestic competition, general economic conditions, changes in conditions in the regional markets in which we operate, changes in costs of raw materials and supplies and evolving government regulations and policies. Some of the more important factors are discussed below, as well as in the section titled "Risk Factors" beginning on page 30 of this Draft Red Herring Prospectus. Our Companys future results of operations could be affected potentially by the following factors:

- Our ability to successfully implement our growth strategy and expansion plans, technological changes and to successfully launch and implement various projects;

- Disruption in our business process;

- Volatility in supply and pricing of raw material and if we are unable to pass on cost increases to our customers or are unsuccessful in managing the effects of raw material price fluctuations, our business, financial condition, results of operations and cash flows could be materially and adversely affected;

- Our ability to manage an adequate inventory level;

- Our ability to meet our capital expenditure requirements;

- Fail to attract, retain and manage the transition of our management team and other skilled & unskilled employees;

- Failure to adapt to the changing technology in our industry of operation may adversely affect our business and financial condition;

- Pricing pressures from the competitive business environment;

- Significant developments in Indias economic liberalization and deregulation policies, and the fiscal regime;

- Occurrence of natural disasters or calamities affecting the areas in which we have operations; and

- Volatility in the Indian and global securities markets.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of Statement of Significant Accounting Policies, please refer to the chapter titled "Restated Financial Statements" beginning on page 188 of this Draft Red Hering Prospectus.

COMPONENTS OF INCOME AND EXPENDITURE

Revenue from operations: Revenue from operations mainly consists from Sales of products.

Other Income: Other Income Consist of Interest Income, Duty Drawback & Foreign Exchange gain.

Expenses: Companys expenses consist of, Cost of Goods Sold, Changes in Inventories of Finished, Depreciation Expenses, Employee Benefit Expenses, Finance Cost & Other Expenses.

Cost of Material Consumed: Cost of Goods Sold is derived by: Opening Stock of Raw material + Purchase of Raw Material + Direct Expenses - Closing Stock of Raw Material.

Change in inventory of Stock in Trade: Change in inventory of Stock in Trade consists of difference between opening & closing value of Stock.

Employee Benefits Expense: Employee benefit expenses includes Salaries and Wages, Directors Remuneration & Contribution to Statutory Funds, Staff Welfare expenses etc.

Finance Cost: Finance Cost includes Interest paid on borrowings & Bank Charges.

Depreciation and Amortization Expense: We recognize Depreciation and Amortization expense on a WDV Basis as per the rates set forth in the Companies Act, 2013/ Companies Act, 1956, as applicable.

Other Expenses: Other expenses include Rent, Repair & Maintenance, Travelling & Conveyance etc.

RESULTS OF OUR OPERATION

The following discussion on results of operations should be read in conjunction with the Restated Financial Statements of our Company for the financial years ended on 2024, 2023 and 2022:

	For The Financial year ended on 31st March
Particulars	2024	% of Total Revenue	2023	% of Total Revenue	2022	% of Total Revenue
Revenue:
Revenue from operations	4,639.11	98.77%	5,035.79	98.70%	6,702.06	98.87%
Other income	57.72	1.23%	66.18	1.30%	76.57	1.13%
TOTAL INCOME	4,696.83	100.00%	5,101.97	100.00%	6,778.63	100.00%
Expenses:
(a) Cost of Goods sold	3,190.70	67.93%	4,073.55	79.84%	5,568.45	82.15%
(b) Purchase of stock-in-trade	-	0.00%	-	0.00%	-	0.00%
(c) Changes in Inventory of Finished goods	(138.37)		(144.63)	-2.83%	(17.14)	-0.25%
(d) Employee benefits expense	278.17	5.92%	289.54	5.68%	194.41	2.87%
(e) Finance costs	196.37	4.18%	122.82	2.41%	54.39	0.80%
(f) Depreciation and amortization expense	169.65	3.61%	140.71	2.76%	105.18	1.55%
(g) Other expenses	355.73	7.57%	381.55	7.48%	408.51	6.03%
TOTAL EXPENSES	4,052.25	86.28%	4,863.54	95.33%	6,313.80	93.14%
Profit / (Loss) before tax	644.59	13.72%	238.43	4.67%	464.83	6.86%
Tax expenses:
(a) Current tax expense	169.71	3.61%	17.45	0.34%	98.13	1.45%
(b) Short/ (Excess) provision of earlier year	-	-	-	-	-	-
(c) Deferred tax expense / (benefit)	2.2	0.05%	48.05	0.94%	24.64	0.36%
Net tax expense/(benefit)	171.91	3.66%	65..50	1.28%	122.77	1.81%
Profit / (Loss) for the year	472.68	10.06%	172.93	3.39%	342.06	5.05%

COMPARISON OF FINANCIAL YEAR ENDED 2024 TO FINANCIAL YEAR ENDED 2023

Revenue from Operation

The Revenue from operations during FY 2023-24 was Rs 4,639.11 lakhs as compared to Rs 5,035.79 lakhs in FY 2022-23 indicating a decrease by 7.88%. The company is in line with its strategy to focus on high margin products and to phase out production of low margin products over time. Sales from new products amounted to Rs 428.38 lakhs which is 9.23% of the Revenue from Operations and increased sales to existing high margin products was Rs 491.53 lakhs which is 10.60% of the Revenue from Operations of FY 2023-24, as one of our strategies is to shift our focus from "High Volume - Low Value" to "Low Volume and High Value" business, which resulted in the increase in profit and decrease in sales volume consequently decrease of capacity utilisation, for further details see, " OUR STRATEGIES- Shifting from "High Volume - Low Value" to "Low Volume and High Value" on page 131 of this Draft Red Herring Prospectus.

Other Income

Other Income in FY 2023-24 amounts to t 57.72 lakhs which is 1.23% of Total Revenue the same was t 66.18 lakhs which was 1.30% of Total Revenue in FY 2022-23.

Cost of Material Consumed

Cost of Material Consumed had decreased by 21.67 % from t 4,073.55 lakhs in FY 2022-23 to t 3,190.70 lakhs in FY 2023-24. Decrease in purchases during the during the year lead to lower Cost of Materials Consumed.

Change in inventory of Finished Goods

Change in inventory of Stock in trade had decreased by 4.33 % from t (144.63) lakhs in FY 2022-23 to t (138.37) lakhs in FY 2023-24. Closing Inventory during FY 2023-24 was t 447.59 lakhs while the opening inventory was t 309.22 lakhs. This led to changes in inventory of t (138.37) during the year. Reduction in sales led to inventory pile up during FY 2023- 24.

Employee Benefit Expenses

Employee benefit expenses has decreased by 3.93% from t 289.54 lakhs in FY 2022-23 to t 278.17 lakhs in FY 2023-24. The decrease was due to lower staff welfare expenses during FY 2023-24.

Finance Cost

Finance Cost has increased by 59.88 % from t 122.82 lakhs in FY 2022-23 to t 196.37 lakhs in FY 2023-24. The increase in Finance cost was due to increased borrowings.

Depreciation and Amortization Expenses

Depreciation has increased by 20.57% from t 140.71 lakhs in FY 2022-23 to t 169.65 lakhs in FY 2023-24. The company charges depreciation on WDV basis. Depreciation increased as the company made additions to their fixed assets during FY 2023-24.

Other Expenses

Other expenses have decreased by 6.77% from t 381.55 lakhs in FY 2022-23 to t 355.73 lakhs in FY 2023-24.

Tax Expenses

The Companys total tax expenses have increased from t 65.50 lakhs in FY 2022-23 to t 171.91 lakhs in FY 2023-24. Increase in profits have attracted more tax liability during FY 2023-24.

Profit After Tax

Profit after Tax in FY 2023-24 was t 472.68 lakhs representing 10.06 % of Total income. The same in FY 2022-23 was t 172.93 lakhs which was 3.39 % of Total Income. The Profit after Tax in FY 2023-24 was higher by 173.34 % as compared to FY 2022-23. The companys strategic move to focus on higher margin products is playing a key role in improvement of profit margins. On the other hand, the gross margin of the company also improved to 34.20% in FY 2023-24 as compared to 21.98% in FY 2022-23. These factors in totality have led to increase in PAT margins during FY 2023 -24.

COMPARISON OF FINANCIAL YEAR ENDED 2023 TO FINANCIAL YEAR ENDED 2022

Revenue from Operation

Revenue from Operations during FY 2022-23 was t 5,035.79 as compared to t 6,702.06 in FY 2021-22 indicating a decrease by 24.86 % The companys strategy was to focus on high margin products and it began to stop producing some of their low margin products as well as reduced sales of some of the low margin products. Another factor was decline in commodity prices. During FY 2021 -2022, the commodity prices were at all time high due to covid-19 and that led to inflated sales during FY 2021 -22. The products phased out by the company resulted in decrease in sales by 31.10% during FY 2022- 23. All these factors led to decrease in Revenue from Operations during FY 2022-23.

Other Income

Other Income in FY 2022-23 amounted to Rs 66.18 lakhs the same was Rs 76.57 lakhs in FY 2021-22. Decrease in other income was due to decrease in Duty Drawback and Foreign Exchange Gain during FY 2022-23.

Cost of Material Consumed

Cost of Material Consumed had decreased by 26.85 % from Rs 5,568.45 lakhs in FY 2021-22 to Rs 4,073.55 lakhs in FY 2022-23. Decrease in purchases during the during the year lead to lower Cost of Materials Consumed.

Change in inventory of Stock in trade

Change in inventory of Stock in trade had increased by 743.82% from Rs (17.14) lakhs in FY 2021-22 to Rs (144.63) lakhs in FY 2022-23. This increase was primarily due to higher closing inventories during the year.

Employee Benefit Expenses

Employee benefit expenses has increased by 48.93% from Rs 194.41 lakhs in FY 2021-22 to Rs 289.54 lakhs in FY 2022-23. This increase was due to increase in salaries and wages during FY 2022-23.

Finance Cost

Finance Cost has decreased by 125.81% from Rs 54.39 lakhs in FY 2021-22 to Rs 122.82 lakhs in FY 2022-23. This increase was primarily due to increase in Interest on borrowings during the year.

Depreciation and Amortization Expenses

Depreciation has increased by 33.78% from Rs 105.18 lakhs in FY 2021-22 to Rs 140.71 lakhs in FY 2022-23. The company charges depreciation on WDV basis. During FY 2022-23, the company made additions in their fixed assets which lead to increase in depreciation during the year.

Other Expenses

Other expenses have decreased by 6.60 % from Rs 408.51 lakhs in FY 2021 -22 to Rs381.55 lakhs in FY 2022-23.

Tax Expenses

The Companys total tax expenses have decreased from Rs 122.77 lakhs in FY 2021-22 to Rs 65.50 lakhs in FY 2022-23. Decrease in profits have led to decreased tax liability during FY 2022-23.

Profit After Tax

Profit after Tax in FY 2022-23 was Rs 172.93 lakhs representing 3.39% of Total income. The same in FY 2021-22 was Rs 342.06 lakhs which was 5.05% of Total Income. The Profit after Tax in FY 2022-23 was lower by 49.44% as compared to FY 2021-22. Decrease in top line growth and the companys strategy to phase out products and focus on higher margin products required the company to incur capital expenditure which led to increase in depreciation by 33.78% during FY 2022-23. Thereby reducing profits in FY 2022-23.

Cash Flows

The table below is our cash flows for the financial years ended on 2024, 2023, and 2022:

(Rs in Lakhs)

Particulars	March 31, 2024	March 31, 2023	March 31, 2022
Net Cash from Operating Activities	261.94	334.97	86.34
Net Cash from Investing Activities	(186.47)	(839.38)	(519.02)
Net Cash from Financing Activities	18.38	433.41	455.80

Cash Flows from Operating Activities

Net cash from operating activities for FY 2023-24 was at 261.94 lakhs as compared to the Profit Before Tax at t 644.59 lakhs while for FY 2022-23 net cash from operating activities was at 334.97 lakhs as compared to the Profit Before Tax at t 238.43 Lakhs. This was primarily due to adjustments against, changes in Working Capital & Income Tax Paid.

Net cash from operating activities for FY 2022-23 was at t334.97 lakhs as compared to the Profit Before Tax at t 238.43 lakhs while for FY 2021-22 net cash from operating activities was at t 86.34 lakhs as compared to the Profit Before Tax at t 464.83 Lakhs. This was primarily due to adjustments against adjustments against, changes in Working Capital & Income Tax Paid.

Cash Flows from Investment Activities

In FY 2023-24, the net cash invested in Investing Activities was t (186.47) lakhs. This was mainly on account of Purchases of Fixed Assets.

In FY 2022-23, the net cash invested in Investing Activities was t (839.38) lakhs. This was mainly on account of Purchases of Fixed Assets.

In FY 2021-22, the net cash invested in Investing Activities was t (519.02) lakhs. This was mainly on account of Purchases of Fixed Assets.

Cash Flows from Financing Activities.

In FY 2023-24, the net cash from financing activities was t 18.38 lakhs. This was on account of proceeds from long term borrowings.

In FY 2022-23, the net cash from financing activities was t 433.41 lakhs. This was on account of proceeds from long term and short-term borrowings.

In FY 2021-22, the net cash from financing activities was t 455.80 lakhs. This was on account of proceeds from long term and short-term borrowings.

RELATED PARTY TRANSACTIONS

Related party transactions with certain of our promoters, directors and their entities and relatives primarily relate to remuneration, salary, commission and issue of Equity Shares. For further details of related parties kindly refer chapter titled "Restated Financial Statements" beginning on page 188 of this Draft Red Herring Prospectus.

OFF-BALANCE SHEET ITEMS

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

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

There are no qualifications in the audit report that require adjustments in the Restated Financial Statements.

QUALITATIVE DISCLOSURE ABOUT MARKET RISK Financial Market Risks

Market risk is the risk of loss related to adverse changes in market prices, including interest rate risk. We are exposed to interest rate risk, inflation and credit risk in the normal course of our business.

Interest Rate Risk

Our financial results are subject to changes in interest rates, which may affect our debt service obligations in future and our access to funds.

Effect of Inflation

In line with changing inflation rates, we may rework our margins so as to absorb the inflationary impact.

Credit Risk

We are exposed to credit risk on monies owed to us by our customers. If our customers do not pay us promptly, or at all, we may have to make provisions for or write-off such amounts.

OTHER MATTERS

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

Except as disclosed in chapter titled "Restated Financial Statements" beginning on page 188 of this Draft Red Herring Prospectus, there have been no defaults in payment of statutory dues or repayment of debentures and interest thereon or repayment of deposits and interest thereon or repayment of loans from any bank or financial institution and interest thereon by the Company.

Material Frauds

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

Unusual or infrequent events or transactions

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

Significant Economic Changes that Materially Affected or are Likely to Affect Income from Continuing Operations

Indian rules and regulations as well as the overall growth of the Indian economy have a significant bearing on our operations. Major changes in these factors can significantly impact income from continuing operations. There are no significant economic changes that materially affected our Companys operations or are likely to affect income from continuing operations except as described in chapter titled "Risk Factors" beginning on page 30 of this Draft Red Herring Prospectus.

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

Other than as described in the section titled "Risk Factors" and chapter titled "Managements Discussion and Analysis of Financial Conditions and Results of Operations", beginning on page 30 and 246 of this Draft Red Herring Prospectus respectively to our knowledge there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our company from continuing operations.

Future relationship between Costs and Income

Other than as described in the section titled "Risk Factors" beginning on page 30 of this Draft Red Herring Prospectus, to our knowledge there are no factors, which will affect the future relationship between costs and income or which are expected to have a material adverse impact on our operations and finances.

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

Changes in revenue in the last three financial years are as explained in the part "Financial Year 2023-24 compared with financial year 2022-23 and Financial Year 2022-23 Compared with Financial Year 2021-22" above.

Significant dependence on a single or few suppliers or customers

Significant proportion of our purchases have historically been derived from a limited number of suppliers. The % of Contribution of our suppliers vis a vis the total purchases for the financial year ended March 31, 2024, 2023 and 2022 are as follows:

Particulars	Suppliers
	March 31, 2024	March 31, 2023	March 31, 2022
Top 5 (%)	31.15%	36.65%	34.41%
Top 10 (%)	47.02%	54.46%	53.59%

Significant proportion of our total revenue have historically been derived from a limited number of Customers. The % of Contribution of our Customers vis a vis the revenue from operations for the financial year ended March 31, 2024, 2023 and 2022 are as follows:

Particulars	Customers
	March 31, 2023	March 31, 2022	March 31, 2021
Top 5 (%)	37.06%	41.73%	36.19%
Top 10 (%)	56.25%	62.83%	55.02%

Status of any publicly announced new products or business segments

Please refer to the chapter titled "Our Business" beginning on page 131 of this Draft Red Herring Prospectus for new products or business segments.

The extent to which the business is seasonal

Our business is not seasonal in nature.

Competitive Conditions

We operate in a competitive atmosphere. Some of our competitors may have greater resources than those available to us. While product quality, brand value, distribution network, etc are key factors in client decisions among competitors, however, reliability and competitive pricing is the deciding factor in most cases. We face fair competition from both organized and unorganized players in the market. We believe that our experience, and reliability record with our customers will be key to overcome competition posed by such organized and unorganized players. Although, a competitive market, there are not enough number of competitors offering products similar to us. We believe that we are able to compete effectively in the market with our quality of products and our reputation. We believe that the principal factors affecting competition in our business include client relationships, reputation, and the relative quality and price of the products.