Three M Paper Boards Ltd Management Discussions

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion of our financial position and results of operations together with our Restated Financial Statements which have been included in this Red Herring Prospectus. The following discussion and analysis of our financial position and results of operations is based on our Restated Financial Statements for financial years ended March 31, 2024, 2023, 2022 and 2021 including the related notes and reports, included in this Red Herring Prospectus prepared in accordance with requirements of the Companies Act and restated in accordance with the SEBI Regulations, which differ in certain material respects from IFRS, U.S. GAAP and GAAP in other countries. Our Financial Statements, as restated have been derived from our audited financial statements for the respective period and years. Accordingly, the degree to which our Restated Financial Information will provide meaningful information to a prospective investor in countries other than India is entirely dependent on the readers level of familiarity with Indian GAAP, Companies Act, SEBI Regulations and other relevant accounting practices in India.

Our Company has not attempted to explain those differences or quantify their impact on the financial data included in this Red Herring Prospectus and it is urged that you consult your own advisors regarding such differences and their impact on our Companys financial information. Our Financial Statements, as restated have been derived from our audited financial statements for the respective period and years. Accordingly, the degree to which our Restated Financial Statements will provide meaningful information to a prospective investor in countries other than India is entirely dependent on the readers level of familiarity with Ind AS, Companies Act, SEBI Regulations and other relevant accounting practices in India. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year ("Fiscal Year") are to the twelve-month period ended March 31 of that year.

This discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those described under "Risk Factors" and "Forward Looking Statements" beginning on pages 26 and 17 respectively, and elsewhere in this Red Herring Prospectus.

In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to Three M Paper Boards Limited, our Company. Unless otherwise indicated, financial information included herein are based on our "Restated Financial Statements" for the Financial Years 2024, 2023, 2022, and 2021 beginning on Page 181 of this Red Herring Prospectus.

BUSINESS OVERVIEW

Our Company was incorporated as "Three-M-Paper Manufacturing Company Private Limited" at Mumbai as a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated July 26, 1989, issued by the RoC. Subsequently, our Company was converted to a public limited company and the name of our Company changed to ‘Three M Paper Boards Limited and a fresh certificate of incorporation dated January 25, 2024 was issued by the RoC. The CIN of our Company is U22219MH1989PLC052740. The registration number of our Company is 052740.

Our company specializes in the manufacturing of recycled paper-based Duplex Board products used in various packaging applications across industries such as food and beverage, pharmaceuticals, cosmetics, and consumer goods and supplies its high-quality duplex board paper products in both the domestic and international markets. Our products are made out of 100 percent recycled waste-paper and are completely biodegradable. Our company sets out to undertake various innovations in both the product-development side as well as in manufacturing processes on a consistent basis. The company is headquartered in Mumbai, with its manufacturing facility located in Chiplun, Dist. Ratnagiri - 415604, Maharashtra, India. Equipped with state-of-the-art machines and ultra-modern technologies in its manufacturing facility, the company had a total manufacturing capacity of 72,000 TPA paper at the close of FY 2023- 24.

Our promoter, Hitendra Dhanji Shah, has been associated with the paper industry for more than two decades with experience in marketing, management, and administration. His son, Rushabh Shah is overseeing production, factory co- ordination, and marketing. They are also supported by a team of qualified personnel in technical, administrative, financial, and marketing areas. We believe our experienced and dedicated management team have demonstrated ability to anticipate and capitalize on changing market trends, formulate and execute business strategies which enables us to manage and grow our operations and & deepen customer relationships.

Our product line features well-established Royal brand Paper and Boards, ranging from 200 to 500 GSM. We are consistently upgrading our technology, with a sustained focus on the fast-growing segments. The Companys swing manufacturing facility enables it to produce a diversified range of products, which has been a source of strength to keep in line with market demand. The company is certified with the FSC? certification by the Forest Stewardship Council?, Germany, acknowledging the efforts on our farm forestry measures under forest conservation.

The companys performance is derived from its strategic focus to be a low-cost paper-based Duplex Board manufacturer with a growing systemic integration of new technologies and processes.

Sales mix and the geographical presence

The following table sets forth certain information on the relative sales contribution of our product categories in the periods indicated on consolidated basis:

(Rs in lakhs)

Category	Fiscal								CAGR (Fiscal 2021 Through Fiscal 2024) (%)
	2024		2023		2022		2021
	Amount (Rs lakhs)	% of total sales	Amount (Rs lakhs)	% of total sales	Amount (Rs lakhs)	% of total sales	Amount (Rs lakhs) *	% of total sales
Sale of Goods
Paper & Paperboard	26,962.31	99.04	32,074.83	98.01	30,865.29	98.64	16,306.05	98.77	18.25
Wind energy	27.69	0.10	23.82	0.07	24.26	0.08	22.65	0.14	6.93
Other Operating revenue
Export incentive	233.48	0.86	626.56	1.91	400.49	1.28	180.12	1.09	9.03
Total	27,223.48	100.00	32,725.21	100.00	31,290.04	100.00	16,508.82	100.00	18.14

Revenue from the sale of Paper & Paper Board is allocated geographically based on the customers location. Details regarding geographical revenue are provided below:

Particulars	For the year ended March 31, 2024	For the year ended March 31, 2023	For the year ended March 31, 2022	For the year ended March 31, 2021
India	23,567.53	23,850.45	15,465.75	12,593.09
Outside India	3,394.78	8,224.38	15,399.53	3,712.95
Total	26,962.31	32,074.83	30,865.29	16,306.05

The following table summarizes the revenue proportion of our top customers for the respective year:

	Fiscal
	2024		2023		2022		2021
Category	Amount (Rs lakhs)	% of total sales	Amount (Rs lakhs)	% of total sales	Amount (Rs lakhs)	% of total sales	Amount (Rs lakhs)	% of total sales
Top 1 customer	2,542.26	9.34%	3,016.04	9.22%	3,887.83	12.43%	1,508.31	9.14%
Top 5 customers	8,155.33	29.96%	9,459.41	28.91%	13,497.60	43.14%	5,883.97	35.64%
Top 10 customers	12,316.15	45.24%	15,738.15	48.09%	19,980.02	63.85%	9,411.94	57.01%

Our key performance indicators for the last Fiscals year ending on March 31, 2024, 2023, 2022 and 2021 are as follows:

(Rs in lakhs unless otherwise stated)

Particulars	Financial Year ended
	March 31, 2024	March 31, 2023	March 31, 2022	March 31, 2021
Total Revenue	27,601.56	32,974.92	31,600.49	16,552.14
EBITDA	2,706.84	2,166.30	1,754.76	1,455.36
Restated Profit After Tax	1,134.72	661.53	327.56	172.63
Current Assets	11,499.98	10,736.17	10,773.02	6,770.38
Current Liabilities	9,147.09	8,830.39	8,928.48	6,809.10
Short Term Borrowings	3,867.11	3,830.44	3,739.24	2,636.51
Long Term Borrowings	3,396.97	4,351.96	4,062.82	2,716.90
Total Borrowings	7,264.08	8,182.40	7,802.06	5,353.41
Net Worth	6,110.39	4,725.67	4,064.14	3,736.58
Basic & Diluted Earnings / (loss) per Equity Share with a nominal value of Rs 10 (in Rs) *	8.60	5.05	2.50	1.32
Return On Net Worth (%)	18.57%	14.00%	8.06%	4.62%
Net Asset Value Per Share*	45.38	721.45	620.46	570.45
Net Asset Value Per Share**	45.38	36.07	31.02	28.52
Total Debt Equity Ratio	1.19	1.73	1.92	1.43

Note:

1) The ratios have been computed as below:

(a) Basic earnings per share (f): Net profit after tax, as restated for calculating basic EPS/Adjusted Weighted average number of equity shares outstanding at the end of the period or year

(b) Diluted earnings per share (f): Net profit after tax, as restatedfor calculating diluted EPS/Adjusted Weighted average number of equity shares outstanding at the end of the period or year

(c) Return on net worth (%): Net profit after tax, as restated / Adjusted Net worth at the end of the period or year

(d) Net assets value per share (f) -: Adjusted Net Worth at the end of the period or year / Total number of equity shares outstanding at the end of the period or year

*(based on equity shares outstanding at the end of the year) (f)

** (based on number of equity shares outstanding at the end of the year after giving effect to any bonus or split of shares undertaken after the last balance sheet date) (f)

While arriving the Adjusted ratios as above: Networth, Number of equity share outstanding as on the end of year/period, weighted average number of equity shares outstanding during the year/period and Weighted average number of diluted equity shares outstanding during the year/period has been adjusted such that as if the partly paid up equity shares were made fully paid-up equity shares at the beginning of the earliest period reported.

For further details, please refer section titled "Our Business" beginning on page 132 of this Red Herring Prospectus.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL PERIOD

In the opinion of the Board of Directors of our Company, since the date of the last audited period i.e., March 31, 2024, as disclosed in this Prospectus, there are no circumstances that materially or adversely affect or are likely to affect the trading or profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months except as follows:

1. Clause I of our Memorandum of Association was amended to reflect the change of name of our Company from ‘Three-M-Paper Manufacturing Company Private Limited to ‘Three M Paper Boards Private Limited vide shareholders resolution dated December 26, 2023. Subsequently, our Company was converted to a public limited company and the name of our Company changed to ‘Three M Paper Boards Limited and a fresh certificate of incorporation dated January 25, 2024 was issued by the RoC.

2. Clause V of our Memorandum of Association was amended to reflect the increase in authorised share capital of our Company vide shareholders resolution dated December 26, 2023. The authorised share capital was increased from existing Rs. 10,00,00,000/- (Rupees Ten Crore) divided into 10,00,000 (Ten lakh) Equity Shares of Rs. 100/- each to Rs. 25,00,00,000/- (Rupees Twenty-Five Crore) divided into 25,00,000 (Twenty-Five Lakhs) Equity Shares of Rs. 100/- each.

3. Clause V of our Memorandum of Association was amended to reflect the sub-division of the equity shares from the face value of Rs. 100/- to face value of Rs. 10/- per share. Pursuant to the sub-division of the equity shares, the authorised share capital of the Company is Rs.25,00,00,000/- (Rupees Twenty-Five Crores) divided into 2,50,00,000 (Two Crores Fifty Lakhs) Equity Shares of Rs. 10/- (Rupees Ten Only) each.

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factors" beginning on page 26 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

> Changes in product mix and geographic mix

To market products around a superior value proposition across grades and geographies, our Company has devised its product strategy and marketing policy prudently in accordance with the evolving international standards customized closely to the needs of customers across India. Our product line includes the Royal Grey Back, Prima Grey Back, and Royal White Back boards, ranging from 200 to 500 GSM. These products are designed to meet specific packaging needs across various industries such as food packaging, FMCG, garments, apparels, footwear, pharmaceuticals, playing cards, and liquor cartons.

> Raw material cost

The expenditure on materials consumed represents the most substantial component of our operating expenses. In fiscal years 2024, 2023, 2022 and 2021 expenditure on material consumed constituted 55.42%, 56.44%, 56.12%, and 47.21% respectively of our total expenses and 52.81%, 55.42%, 55.30% and 46.54% respectively of our total revenues for such periods. The availability and cost of raw materials have a considerable impact on our financial situation and operational results, constituting the most significant expense for our business.

Our Company meets its demand of raw material i.e., waste paper and chemicals by importing the same mainly from the United States of America, United Kingdom, Central Europe, Middle East, etc.

> Foreign Exchange Fluctuation Risk

Our operational revenue includes revenue generated from both domestic sales and the export of our products. This gives us exposure to foreign currencies while we prepare our financial statements in Indian Rupees.

The company has exported goods worth Rs 3,394.78 Lacs, Rs 5,876.61 Lacs, Rs 12,655.25 Lacs and Rs 3,712.95 Lacs for the financial years ended on March 31, 2024, 2023, 2022 and 2021 respectively. The exports are 12.59%, 17.96%, 40.44% and 22.49% of the total sales of the company for the financial years ended on March 31, 2024, 2023, 2022 and 2021 respectively.

We do not hedge our foreign currency exposure. Accordingly, we are affected by fluctuations in exchange rates among the U.S. Dollar, Indian Rupees and other foreign currencies.

For Fiscals 2024, 2023, 2022 and 2021, we recorded foreign currency exchange gains of Rs 109.74 Lakhs, Rs 194.12 Lakhs, Rs 267.37 Lakhs and Rs 21.05 Lakhs, respectively, due to fluctuations in foreign exchange rates.

There can be no assurance that we will continue to record exchange gains solely from foreign exchange fluctuations, or that any hedging measures which we may take will enable us to avoid the effect of any adverse fluctuations in the value of the Indian Rupee against the U.S. Dollar or other foreign currencies.

Other factors affecting our business:

> Established Network of Dealers and Customers

> Dependencies on demand from end-user industries

> The shortage or non-availability of power and water facilities in manufacturing unit.

> Technological advancements could make our current technologies obsolete, requiring substantial capital investments.

> Equipped with state-of-the-art machines and ultra-modern technologies in its manufacturing facility.

> Large number of organized and unorganized players

> Changes in laws, rules & regulations and legal uncertainties

SIGNIFICANT ACCOUNTING POLICIES

For more details kindly refer to section titled "Restated Financial Statements" of this Red Herring Prospectus.

DISCUSSION ON RESULTS OF OPERATIONS

The following table sets forth financial data from our restated financial statements of profit & loss for the financial years ended March 31, 2024, 2023, 2022 and 2021, the components of which are also expressed as a percentage of total revenue for such periods:

Particulars	Year ended March 31, 20234		Year ended March 31, 2023		Year ended March 31, 2022		Year ended March 31, 2021
	Amount	%*	Amount	%*	Amount	%*	Amount	%*
(A) Revenue
Revenue from Operations	27,223.48	98.63	32,725.21	99.24	31,290.04	99.02	16,508.82	99.74
Other Income	378.08	1.37	249.71	0.76	310.45	0.98	43.32	0.26
Total Revenue (I)	27,601.56	100.00	32,974.92	100.00	31,600.49	100.00	16,552.14	100.00
(B) Expenditure
Cost of material consumed	14,575.92	52.8	18,273.73	55.42	17,476.14	55.30	7,703.76	46.54
Direct Expenses	2,218.53	8.04	2,268.92	6.88	1,873.96	5.93	1,321.12	7.98
Changes in Inventories of Work- in progress, Finished goods and Stock in trade	(159.08)	-0.58	(607.61)	(184)	(1,074.51)	(3.40)	29.18	0.18
Employee benefits expense	1,400.72	5.07	1,436.11	4.36	1,602.05	5.07	909.43	5.49
Finance costs	746.40	2.70	964.04	2.92	732.79	2.32	665.74	4.02
Depreciation and amortization expense	661.91	2.40	604.69	1.83	562.59	1.78	555.90	3.36
Other expenses	6,858.63	24.85	9,437.47	28.62	9,968.09	31.54	5,133.29	31.01
Total Expenditure OH	26,303.03	95.30	32,377.35	98.19	31,141.11	98.55	16,318.42	98.59
Profit / (Loss) Before Tax (III=I-II)	1,298.53	4.70	597.57	1.81	459.38	1.45	233.72	1.41
Tax Expense:
(i) Current tax	329.20	1.19	99.75	0.30	76.68	0.24	39.01	0.24
(ii) Deferred tax expenses/( credit)	(165.39)	-0.60	(63.97)	(0.19)	131.82	0.42	61.09	0.37
(iii) Short /excess provision for tax	-	0.00	(99.74)	(0.30)	(76.68)	(0.24)	(39.01)	(0.24)
Net Current Tax Expenses (IV)	163.81	0.59	(63.96)	(0.19)	131.82	0.42	61.09	0.37
Profit/(Loss) for the year(V=III-IV)	1,134.72	4.11	661.53	2.01	327.56	1.04	172.63	1.04

*(%) column represents percentage of total revenue.

FOR THE PERIOD ENDED MARCH 31, 2024 Income:

Total Revenue

Our total revenue amounted to Rs27,601.56 lakhs for the year ended March 31, 2024 which is on account of revenue from operations and other income as described.

Revenue from Operations

Our revenue from operations for the year ended March 31, 2024 was Rs 27,223.48 lakhs which is about 98.63% of the total revenue.

Out of which Rs 26,990.00 lakhs comes from sale of goods (Paper & paper board and Wind energy) and Rs 233.48 lakhs from other operating revenue. Other operating income comprised of revenue from export incentive.

The sales volumes has increased to 70,355 MT in Fiscal 2024 as compared to 64,426 MT in Fiscal 2023. This is increase of 5,929 MT or 9.20%. However, the overall sales in rupee terms has decreased due to reduced selling prices across the paper industry. This was driven by lower raw material prices and intense competition in this fragmented industry.

Other Income

Our other income for the year ended March 31, 2024 was Rs 378.08 lakhs which is about 1.37% of the total revenue. Expenditure:

Cost of Materials Consumed

Cost of Materials Consumed for the year ended March 31, 2024 was Rs 14,575.92 lakhs which aggregated 52.81% of the total revenue.

Direct Expenses

Direct Expenses for the year ended March 31, 2024 was Rs 2,218.53 lakhs which aggregated to 8.04% of total revenue.

Change in inventories of Stock in Trade

Our changes in inventories of stock in trade was Rs (159.08) lakhs.

Employee Benefits Expenses

The employee benefits expenses for the year ended March 31, 2024 was Rs 1,400.72 Lakhs which is about 5.07% of the total revenue.

Finance Cost

Financial costs for the period ended March 31, 2024 was Rs 746.40 Lakhs which is about 2.70% of the total revenue.

Other Expenses

Other Expenses for the year ended March 31, 2024 was Rs 6,858.63 Lakhs which is about 24.85% of the total revenue.

Reduced Power and Fuel Costs: The company utilized Low Calorific Value (LCV) coal for generating electricity and steam for the plant, which is more cost-effective compared to High Calorific Value (HCV) coal. This resulted in significantly lower power and fuel costs, thereby increasing the operating profit.

Lower Selling Expenses: Due to a significantly lower proportion of export sales, the company substantially reduced selling expenses such as commissions to export dealers, export expenses, and ocean freight.

Reversal of Provision for Doubtful Debts: There was an Rs. 85 lakhs increase in PBT due to the reversal of the provision for doubtful debts.

Consumption of Stores, spares and tools and Packing materials: There was reduced consumption of Stores, spares and tools and Packing materials.

Depreciation and Amortization Expenses

Depreciation for the year ended March 31, 2024 was Rs 661.91 lakhs which is about 2.40% of the total revenue.

Profit before Tax

Profit before tax for the year ended March 31, 2024 was Rs 1,298.53 lakhs which is about 4.70% of the total revenue.

Tax Expenses

Current tax expenditure was Rs 163.81 Lakhs for the year ended March 31, 2024. Deferred tax charge was Rs (165.39) Lakhs during the same period.

Profit after Tax (PAT)

For the various reasons discussed above, we recorded a profit after tax for the year of Rs 1,134.72 lakhs during the year ended March 31, 2024.

COMPARISON OF FINANCIAL YEAR ENDED MARCH 31, 2024 TO FINANCIAL YEAR ENDED MARCH 31, 2023

Total Revenue

Our total revenue decreased by 16.30% to Rs27,601.56 Lakhs for the Fiscal 2024 from Rs 32,974.92 lakhs for the Fiscal 2023 primarily due to reduction in the sale price of paper and paper boards.

Revenue from Operations

Revenue from operations decreased by 15.94% to Rs27,223.48 Lacs in the Fiscal 2024 from Rs 32,725.21 lakhs in the Fiscal 2023. The revenue from operations consists of Sale of Finished products, Income from sale of electricity from wind mill and Export Incentive.

The revenue from sale of goods decreased by 15.94% to Rs 26,962.31 Lacs in Fiscal 2024 from Rs 32,074.83 lakhs in Fiscal 2023. This is decrease of Rs 5,112.52 lakhs. The increase is primarily due to reduction in sales prices across paper industry.

The revenue from sale of electricity from wind mill increased by 3.87%, to Rs 27.69 lakhs in Fiscal 2024 from Rs 23.82 lakhs in Fiscal 2023. This is increase of Rs 3.87 lakhs.

The revenue from other operating activities which consists of Export Incentives decreased by 62.47% to Rs 233.48 lakhs in Fiscal 2024 to Rs 626.56 lakhs in Fiscal 2023 primarily due to reduction in export sales.

Other Income

In the Fiscal 2024 it was Rs 378.08 Lakhs as compared to Rs 249.71 Lakhs for the Fiscal 2023 which shows an increase of 41.35%.

The change is primarily due to higher interest income recorded. The interest income increased by 2,460.81% to Rs 157.66 lakhs in Fiscal 2024 from Rs 6.32 lakhs in Fiscal 2023. This is increase of Rs 151.34 lakhs.

The Foreign Exchange Fluctuation which decreased by 31.56% to Rs 109.74 lakhs in Fiscal 2024 from Rs 194.12 lakhs in Fiscal 2023. This is decrease of Rs 84.23 lakhs. The primary reason is the reduction in export sales.

Further, the Insurance claim received also increased to Rs 25.84 lakhs in Fiscal 2024 from Rs 5.84 Lakhs in Fiscal 2023. Also, miscellaneous income decreased to Rs 1.12 lakhs in Fiscal 2024 from Rs 5.96 lakhs in Fiscal 2023.

Further, the Sundry Balance Written Back increased to Rs 83.72 lakhs in Fiscal 2024 from Rs 37.74 Lakhs in Fiscal 2023. The reason is bad debts recovered in Sundry Balance Written Back Account.

Expenditure

Cost of Materials Consumed

The cost of material consumed in Fiscal 2024 was lower by 20.24% to Rs 14,575.92 Lacs in Fiscal 2024 compared to Rs 18,273.73 Lakhs in Fiscal 2023. This is due to reduction in corresponding reduction in the cost of raw materials prices.

Direct Expenses

The value of direct expenses in Fiscal 2024 reduced 2.22 % to Rs 2,218.53 Lakhs in Fiscal 2024 from Rs 2,268.92 Lakhs in Fiscal 2023. There is increase in Clearing and forwarding charges whereas reduction in customs duty resulting in overall increase of Direct Expenses.

Change in Inventories of Stock-in-Trade

The cost of changes in inventories of goods has been reduced 73.82% to Rs (-159.08) lakhs in Fiscal 2024 from Rs (607.61) lakhs in Fiscal 2023. This is due to increase in inventory levels of work- in-progress, finished goods, and stock-in-trade. Also, there is loss due to flood and cyclone which has resulted in Rs (48.54) Lacs.

Employee Benefits Expenses

The Employee benefits expenses for Fiscal 2024 reduced by 2.46 % to Rs 1,400.72 Lakhs as compared from Rs 1,436.11 Lakhs in Fiscal 2023. This is overall reduction of Rs. 35.39 Lacs. The employee benefits expenses have reduced as there is reduction in staff welfare expenses and Gratuity provision.

Finance Cost

The Finance Cost reduced by 22.58% in Fiscal 2024 to Rs 746.60 Lakhs from Rs 964.04 Lakhs in Fiscal 2023 due to significant reduction in the interest cost and bank charges.

Depreciation and Amortization Expenses

The Depreciation increased by 9.46% to Rs 661.91 Lakhs in the Fiscal 2024 from Rs 604.69 Lakhs in the Fiscal 2023 primarily on account of depreciation on account of increase in the Property, Plant & Equipment Account due the capex undertaken.

Other Expenses

The overall other expenses decreased by 27.33% to Rs 6,858.63 Lakhs in the Fiscal 2024 from Rs 9,437.47 Lakhs in the Fiscal 2023. This is overall reduction of Rs. 2,578.84 Lacs over previous year.

Power & Fuel: The power and fuel cost has reduced by 32.43% to Rs 3,618.72 Lakhs in the Fiscal 2024 from Rs 5,355.44 Lakhs in the Fiscal 2023. The power cost has reduced as the company has started using low calorific value coal which is cheaper to the coal used earlier. The fact has to be noted that there is increase in volume of production compared to previous year. This has resulted in cost reduction of Rs 1,736.72 Lacs.

Selling and distribution: The Company efficiently utilized its marketing team, resulting in a considerable reduction in selling and distribution costs. The selling and distribution cost has reduced by 28.27% to Rs 1,561.78 Lacs in Fiscal 2024 from Rs 2,177.41 Lacs in Fiscal 2023. This has resulted in cost reduction of Rs 615.63 Lacs.

Consumption of stores, spares and tools: The Consumption of stores, spares and tools costs by has reduced 22.44% to Rs 345.90 Lakhs Lacs in Fiscal 2024 from Rs 445.96 Lakhs in the Fiscal 2023. This has resulted in cost reduction of Rs 100.06 Lacs.

Insurance Premium: The insurance premium cost has reduced by 36.50% to Rs 3,618.72 Lakhs in the Fiscal 2024 from Rs 5,355.44 Lakhs in the Fiscal 2023. This has resulted in cost reduction of Rs 38.32 Lacs.

Lease rentals of plant and machinery: The Lease rentals of plant and machinery cost has reduced by 69.25% to Rs 31.84 Lakhs in the Fiscal 2024 from Rs 103.54 Lakhs in the Fiscal 2023. This has resulted in cost reduction of Rs 71.70 Lacs.

Legal and professional: The Legal and professional cost has reduced by 16.84% to Rs 87.33 Lakhs in the Fiscal 2024 from Rs 105.01 Lakhs in the Fiscal 2023. This has resulted in cost reduction of Rs x17.68 Lacs.

Repairs and maintenance: The Repairs and maintenance costs by has increased by 45.12% to Rs 146.21Lakhs Lacs in Fiscal 2024 from Rs 100.75 Lakhs in the Fiscal 2023. This has resulted in cost increase of Rs 45.46 Lacs.

Profit before tax

For the reasons discussed above, profit before tax has increased by 117.30% to Rs 1,298.53 lakhs in Fiscal 2024 compared to Rs 597.57 lakhs in Fiscal 2023.

Tax Expenses

The total tax expenses has increased by 356.10% in Fiscal 2024 to Rs 163.81 Lakhs from Rs (63.96) Lakhs in Fiscal 2023. This is overall increase of Rs. 227.78 Lacs compared to the previous year. This is due to increase in the current tax expenses to Rs 329.20 Lakhs in the Fiscal 2024 compared to Rs 99.75 Lakhs in the Fiscal 2023. Also, there is no MAT Credit Entitlements in the current year. The MAT credit entitlements in the Fiscal Year 2024 is Rs 0.00 compared to Rs (99.74) Lacs in Fiscal 2023.

Profit after Tax (PAT)

For the various reasons discussed above, we recorded a profit after tax for the year of Rs 1,134.72 lakhs in Fiscal 2024 compared to Rs 661.53 Lakhs in Fiscal 2023.

COMPARISON OF FINANCIAL YEAR ENDED MARCH 31, 2023 TO FINANCIAL YEAR ENDED MARCH 31, 2022

Total Revenue

Our total revenue increased by 4.35% to Rs 32,974.92 lakhs for the Fiscal 2023 from Rs 31,600.49 Lakhs for the Fiscal 2022 primarily due to higher growth in sale of paper and paper boards.

Revenue from Operations

Revenue from operations increased by 4.59% to Rs 32,725.21 lakhs in the Fiscal 2023 from Rs 31,290.04 lakhs during the Fiscal 2022. The revenue from operations consists of Sale of Finished products, Income from sale of electricity from wind mill and Export Incentive.

The revenue from sale of goods increased by 3.92%, i.e. from Rs 30,865.29 lakhs in Fiscal 2022 to Rs 32,074.83 lakhs in Fiscal 2023. This is increase of Rs 1,209.54 lakhs. The increase is primarily due to increase in sales prices and change in sale of product mix resulting in higher revenue.

The revenue from sale of electricity from wind mill decreased by 1.81%, i.e. from Rs 24.26 lakhs in Fiscal 2022 to Rs 23.82 lakhs in Fiscal 2023. This is decrease of Rs 0.44 lakhs.

The revenue from other operating activities which consists of Export Incentives increased by 56.45% i.e. from Rs 400.49 lakhs in Fiscal 2022 to Rs 626.56 lakhs in Fiscal 2023 primarily due to higher export sales (compared to last Financial Year) in Fiscal 2023.

Other Income

In the Fiscal 2023 it was Rs 249.71 Lakhs as compared to Rs 310.45 Lakhs for the Fiscal 2022 which shows a decrease by 19.57%.

The change is primarily on account of foreign Exchange Fluctuation which is decreased to Rs 194.12 lakhs in Fiscal 2023 from Rs 267.37 lakhs in Fiscal 2022. This is decrease of Rs 73.25 lakhs. The primary reason is the fluctuation in the foreign exchange rates at the time of booking of entries and the time of payment/realisation.

Further, the Insurance claim received also decreased to Rs 5.84 lakhs in Fiscal 2023 from Rs 6.74 Lakhs in Fiscal 2022. Also, miscellaneous income decreases to Rs 5.69 lakhs in Fiscal 2023 from Rs 5.98 lakhs in Fiscal 2022.

Further, the Sundry Balance Written Back increased to Rs 37.74 lakhs in Fiscal 2023 from Rs 24.21 Lakhs in Fiscal 2022. Also, miscellaneous income decreases to Rs 5.69 lakhs in Fiscal 2023 from Rs 5.98 lakhs in Fiscal 2022. The primary reason is bad debts recovered in Sundry Balance Written Back Account.

Expenditure

Cost of Materials Consumed

The cost of material consumed in Fiscal 2023 was higher by 4.56% to Rs 18,273.73 Lakhs in Fiscal 2023 compared from Rs 17,476.14 lakhs in Fiscal 2022. This is due to increase cost of raw materials prices and changes in composition of purchase of raw materials.

Direct Expenses

The value of direct expenses in Fiscal 2023 increases by 21.08% to Rs 2,268.92 Lakhs in Fiscal 2023 compared from Rs 1,873.96 in Fiscal 2022. As the import of goods has increased in current fiscal year, this has resulted increased in associated cost of imports, i.e. Carriage Inwards on import, Clearing and forwarding charges and customs duty on import resulting in overall increase of Direct Expenses.

Change in Inventories of Stock-in-Trade

The cost of changes in inventories of finished goods has been increased 43.45% from Rs (-1,074.51) lakhs in Fiscal 2022 to Rs (607.61) lakhs in Fiscal 2023. There was flooding, which is one time event in Fiscal 2022 leading to loss of Rs 1,318.49 lakhs. This is overall increase of Rs. 466.90 Lacs or 43.45% over previous FY.

This increase was driven by heightened closing stock levels of semi-finished and finished goods, coupled with the absence of losses incurred in FY 23 due to floods and cyclones, the loss of which was incurred in FY22. The changes in inventories is the balancing figure and is due to the effect of difference between the opening stock and closing stock..

Employee Benefits Expenses

The Employee benefits expenses for Fiscal 2023 decreased by 10% to Rs 1,436.11 Lakhs as compared from Rs 1,602.05 Lakhs in Fiscal 2022. This is overall reduction of Rs. 165.94 Lacs or 10.36% over previous year. For the Fiscal year 2022, the company has paid remuneration to Directors of Rs. 300.00 Lacs whereas compared to Rs. NIL in the Fiscal 2023. Thus, the employee benefits expenses have reduced as the directors have forgone their remunerations in Fiscal 2023.

Finance Cost

The Finance Cost increased by 31.56% in Fiscal 2023 to Rs 964.04 Lakhs from Rs 732.79 Lakhs in Fiscal 2022 due to increase in the interest cost.

Depreciation and Amortization Expenses

The Depreciation increased by 7.48% to Rs 604.69 Lakhs in the Fiscal 2023 from Rs 562.59 Lakhs in the Fiscal 2022 primarily on account of depreciation on account of increase in the Property, Plant & Equipment Account due the capex undertaken.

Other Expenses

The overall other expenses decreased by 5.32% to Rs 9,437.47 Lakhs in the Fiscal 2023 as compared to Rs 9,968.09 Lakhs in the Fiscal 2022. This is overall reduction of Rs. 530.62 Lacs or 5.32% over previous year.

Repairs and Maintenance: In FY 22, the company had undertaken major repairs and had incurred significant expenses for repairs and maintenance due to the floods that occurred in the Chiplun factory that year. Consequently, there was a substantial decrease in the cost of repairs and maintenance in FY 23. This reduction led to a decrease in repair and maintenance costs from Rs. 312.17 Lacs in FY 22 to Rs. 100.75 Lacs in FY 23, resulting in a cost reduction of Rs. 211.42 Lacs.

Selling and distribution: The Company efficiently utilized its marketing team, resulting in a considerable reduction in selling and distribution costs. The selling and distribution cost has reduced from Rs. 3,025.44 Lacs in FY 22 to Rs. 2,177.41 Lacs in FY 23. This has resulted in cost reduction of Rs. 848.03 Lacs.

Sales Commission: The sales commission expenses experienced a significant reduction from Rs. 281.01 Lacs in FY 2021- 22 to Rs. 74.64 Lacs in FY 2022-23, leading to a cost decrease of Rs. 206.37 Lacs. This reduction can be attributed to two primary reasons. Firstly, the proportion of export sales decreased to 17.96% of total sales in FY 2022-23, down from 40.44% in FY 2021-22, resulting in a sharp decline in commission payable for exports from Rs. 145.11 Lacs to Rs. 66.31

Lacs. Secondly, in FY 2021-22, the companys plant experienced flooding due to heavy rains, causing inventory damage. Consequently, the company had to liquidate certain damaged stock, by paying higher sales commissions of Rs. 135.90 Lacs, which decreased significantly to Rs. 8.34 Lacs in FY 2022-23. As a result, related costs such as commission, export freight, and clearing and forwarding charges incurred on export sales were reduced. These expenses are not incurred on domestic sales.

There was increase in the power and fuel cost, insurance premiums, cost of tools, spares, etc., And Whereas there was reduction in the consumption of packaging materials, other factory overheads, repairs and maintenance, selling and distribution, sales commission, repairs and maintenance..

Profit before tax

For the reasons discussed above, profit before tax was Rs 597.57 lakhs in Fiscal 2023 compared to Rs 459.38 lakhs in Fiscal 2022.

Tax Expenses

The total tax expenses has reduced by 148.52% in Fiscal 2023 to Rs (63.96) Lakhs from Rs 131.82 Lakhs in Fiscal 2022. This is overall reduction of Rs. 195.78 Lacs or 148.52% compared to the previous year, resulting in tax savings of Rs. 195.78 Lacs. This is due to tax reversal of Deferred Credit Tax and MAT Credit Entitlements. The Deferred Tax was Rs. 131.82 Lacs for the FY 22 and Rs. (-) 63.97 Lacs for the FY 23. This has resulted in decrease of tax expense of Rs. 195.79 Lacs. The MAT Credit Entitlement was Rs. (-) 76.68 Lacs for the FY 22 and Rs. (-) 99.74 Lacs for the FY 23. This has resulted in decrease of tax expense of Rs. 23.07 Lacs. However, there is increase in current tax to Rs 99.75 Lakhs in the Fiscal 2023 compared to Rs 76.68 Lakhs in the Fiscal 2022. Thus, the tax cost has decreased significantly as the company has received tax reversals because of excess MAT taxes paid in previous years..

Profit after Tax (PAT)

For the various reasons discussed above, we recorded a profit after tax for the year of Rs 661.53 lakhs in Fiscal 2023 compared to Rs 327.56 Lakhs in Fiscal 2022.

COMPARISON OF FINANCIAL YEAR ENDED MARCH 31, 2022 TO FINANCIAL YEAR ENDED MARCH 31, 2021

Total Revenue

Our total revenue increased by 90.91% to Rs 31,600.49 lakhs for the Fiscal 2022 from Rs 16,552.14 Lakhs for the Fiscal 2021 primarily due significant increase in the price of duplex paper post covid-19.

Revenue from Operations

The companys financial performance was significantly impacted by COVID-19 disruptions, especially during the first half of the fiscal year. Operations were scaled down due to reduced demand for duplex board. The second half of the year saw a gradual recovery, but the overall income was still affected by the pandemic.

Revenue from operations increased by 89.54% to Rs 31,290.04 lakhs for the Fiscal 2022 from Rs 16,508.82 Lakhs for the Fiscal 2021. The revenue from operations consists of Sale of Finished products, Income from sale of electricity from wind mill and Export Incentive.

The revenue from sale of goods increased by 89.29%, i.e. from Rs 16,306.05 lakhs in Fiscal 2021 to Rs 30,865.29 lakhs in Fiscal 2022. This is increase of Rs 14,559.52 lakhs. The increase is primarily due to increase in in the price of duplex paper post covid-19 resulting in higher revenue.

The revenue from sale of electricity from wind mill increased by 7.11%, i.e. from Rs 22.65 lakhs in Fiscal 2021 to Rs 24.26 lakhs in Fiscal 2022. This is increase of Rs 1.61 lakhs.

The revenue from other operating activities which consists of Export Incentives increased by 122.35% i.e. from Rs 180.12 lakhs in Fiscal 2021 to Rs 400.49 lakhs in Fiscal 2022 primarily due to higher export sales (compared to last Financial Year) in Fiscal 2022.

Other Income

In the Fiscal 2022 it was Rs 43.32 Lacs as compared Rs 310.45 Lakhs for the Fiscal 2022 which shows increase of 616.64%.

The change is primarily on account of foreign Exchange Fluctuation which is increase to Rs 267.37 lakhs in Fiscal 2022 from Rs 21.05 lakhs in Fiscal 2021. This is increase of Rs 246.32 lakhs. The primary reason is the fluctuation in the foreign exchange rates at the time of booking of entries and the time of payment/realisation.

Further, the Insurance claim received also decreased to Rs 6.74 lakhs in Fiscal 2022 from Rs 7.40 Lakhs in Fiscal 2021.

Further, the Sundry Balance Written Back increased to Rs 24.21 lakhs in Fiscal 2022 from Rs 7.87 Lakhs in Fiscal 2021. The primary reason is bad debts recovered in Sundry Balance Written Back Account. Also, miscellaneous income increased to Rs 5.98 in Fiscal 2022 from Rs 0.52 lakhs in Fiscal 2022.

Expenditure

Cost of Materials Consumed

The cost of material consumed in Fiscal 2022 was higher by 126.85% to Rs 17,476.14 Lakhs in Fiscal 2022 compared from Rs 7.703.76 lakhs in Fiscal 2021. This is due to increase cost of raw materials prices and changes in composition of purchase of raw materials post covid-19.

Direct Expenses

The value of direct expenses in Fiscal 2022 increases by 41.85% to Rs 1,873.96 Lakhs in Fiscal 2022 compared from Rs 1,321.12 in Fiscal 2021. As the import of goods has increased in fiscal year 2022, this has resulted increased in associated cost of imports, i.e. Carriage Inward, Carriage Inwards on import, Clearing and forwarding charges and customs duty on import resulting in overall increase of Direct Expenses. However, there was reduction in other charges in the Fiscal 2022 compared to Fiscal 2021.

Change in Inventories of Stock-in-Trade

The cost of changes in inventories of finished goods has been decreased 3,782.35% from Rs 29.18 lakhs in Fiscal 2021 to Rs (-1,074.51) lakhs in Fiscal 2022. There was flooding, which is one time event in Fiscal 2022 leading to loss of Rs 1,318.49 lakhs. The changes in inventories is the balancing figure and is due to the effect of difference between the opening stock and closing stock.

Employee Benefits Expenses

The Employee benefits expenses for Fiscal 2022 increased by 76.16% to Rs 1,602.05 Lakhs as compared from Rs 909.43 Lakhs in Fiscal 2021 due to increase in wages and salaries.

Finance Cost

The Finance Cost increased by 10.07% in Fiscal 2022 to Rs 732.79 Lakhs from Rs 665.74 Lakhs in Fiscal 2021. The same is primarily on account of increase in bank charges and interest costs.

Depreciation and Amortization Expenses

The Depreciation increased by 1.20% to Rs 562.59 Lakhs in the Fiscal 2022 from Rs 555.90 Lakhs in the Fiscal 2021 primarily on account of depreciation on account of increase in the Property, Plant & Equipment Account due the capex undertaken.

Other Expenses

The overall other expenses increased by 94.19% to Rs 9,968.09 Lakhs in the Fiscal 2022 as compared to Rs 5,133.29 Lakhs in the Fiscal 2021.

In FY 22, the company incurred significant expenses for repairs and maintenance due to the floods that occurred in the Chiplun factory that year.

In FY 22, the companys plant experienced flooding due to heavy rains, causing inventory damage. Consequently, the company had to liquidate certain damaged stock by paying higher sales commissions in FY 22, leading to higher costs in that fiscal year.

There was increase in the Consumption of stores, spares and tools, Consumption of Packing Material, Power and fuel, Other Factory Overheads, Legal and professional, Repairs and maintenance, Selling and distribution expenses, Sales commission. And whereas there was reduction in the Bad Debts.

Profit before tax

For the reasons discussed above, profit before tax was Rs 459.38 lakhs in Fiscal 2022 compared to Rs 233.72 lakhs in Fiscal 2021.

Tax Expenses

The total tax expenses has increased by 115.77% in Fiscal 2022 to Rs 131.82 Lakhs from Rs 61.09 Lakhs in Fiscal 2021 due to current tax and Deferred Credit. However, there is further decrease in MAT Credit Entitlement to Rs (76.68) Lakhs in the Fiscal 2022 compared to Rs (39.01) Lakhs in the Fiscal 2021. Thus, the company has received tax reversals because of excess MAT taxes paid in previous years.

Profit after Tax (PAT)

For the various reasons discussed above, we recorded a profit after tax for the year of Rs 327.56 lakhs in Fiscal 2022 compared to Rs 172.63 Lakhs in Fiscal 2021.

LIQUIDITY AND CAPITAL RESOURCES

We have historically financed the expansion of our business and operations primarily through debt financing, equity funding and funds generated from our operations. From time to time, we may obtain loan facilities to finance our short term working capital requirements.

CASH FLOWS

The following table sets forth certain information relating to our cash flows in the periods indicated:

(Rs in lakhs)

Particulars	For the financial year ended
	March 31, 2024	March 31, 2023	March 31, 2022	March 31, 2021
Net cash flows from / (used in) operating activities	1,393.85	2,353.22	(1,032.00)	1,193.02
Net cash flows from / (used in) investing activities	20.73	(1,826.04)	(565.69)	(382.37)
Net cash flows from / (used in) financing activities	1,414.72	(544.85)	1,616.08	(814.44)
Net Increase/(Decrease) In Cash & Cash Equivalents	(0.14)	(17.67)	18.39	(3.79)
Cash equivalents at the beginning of the year	9.16	26.82	8.43	12.23
Cash equivalents at the end of the year	9.02	9.16	26.82	8.43

CONTINGENT LIABILITIES AND OFF-BALANCE SHEET ARRANGEMENTS

As on March 31, 2024, the details of our contingent liabilities are set forth in the table below:

(Rs in lakhs)

Particulars	As at March 31, 2024	As at March 31, 2023	As at March 31, 2022	As at March 31, 2021
I. Contingent Liabilities
(i) Disputed income tax and penalty demands in respect of which the Company has filed an appeal before the Bombay High Court and the same is pending disposal.	16.11	16.11	16.11	16.11
(ii) Disputed income tax and penalty demands in respect of which the Company has preferred an appeal before CIT (A) andthe same is pending disposal.	257.24	257.24	257.24	257.24
(iii) Disputed Custom Duty demands in respect of which the Company has filed an Appeal before Commissionerate, Pune.	8.21	8.21	-	-
(iv) Disputed income tax and penalty demands in respect of which the Company has filed an application for rectification and the same is pending disposal.	-	-	6.72	6.72
(v) On account of guarantees given to bankers	20.00	48.00	48.00	38.00
II. Commitments
(a) Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances)	254.97	48.00	7.56	-
(b) uncalled liability on shares and other investments partly paid	-	-	-	-
(c) other commitments	29.46	29.46	-	-
Total	585.99	359.02	335.63	318.07

CAPITAL EXPENDITURES

In Fiscal 2024, 2023, 2022 and 2021, gross addition to our fixed assets (property, plant and equipments and intangible assets) were Rs 529.55 lakhs, Rs 1,492.20 lakhs, Rs 361.68 lakhs, and Rs 249.78 lakhs, respectively. The following table sets forth our fixed assets for the periods indicated:

(Rs in lakhs)

Particulars	For the financial year ended
	March 31, 2024	March 31, 2023	March 31, 2022	March 31, 2021
Property Plant and Equipment	7,621.62	7,794.30	6,905.80	7,075.69
Intangible Assets	1.01	1.47	2.47	2.45
Capital Work in Progress	183.16	-	99.70	-
Total	7,805.79	7,795.77	7,007.97	7,078.14

DETAILS ON WORKING CAPITAL REQUIRED FOR OUR BUSINESS OPERATIONS

The details of holding period for the working capital deployed by our Company, Three M Paper Boards Limited as at March 31, 2024, 2023, 2022 and 2021 is as under:

(Rs in lakhs)

Particulars	As at
	March 31, 2024	March 31, 2023	March 31, 2022	March 31, 2021
Inventories	2,939.31	3,417.37	2,047.59	2,670.29
Trade receivables	5,420.21	4,255.80	4,610.90	2,890.04
Short term loans and advances	1,737.31	1,922.31	2,008.98	1,168.04
Other current assets	1,390.63	593.03	1,970.23	16.08
Trade payables	4,682.02	4,497.82	4,514.44	3,940.96
Other current liabilities & short- term provisions	597.96	502.13	674.80	231.63

RELATED PARTY TRANSACTIONS

We enter into various transactions with related parties in the ordinary course of business. These transactions principally include sale of goods and services to entities where any of our KMPs or their relatives have control or significant influence, sale of goods to subsidiary and purchase of goods and services from related parties, loan taken from related parties and loan repaid related parties, employee advance to related parties, employee advance received back from related parties, remuneration paid to KMPs, expenses incurred on behalf of related party and guarantees given to lenders against borrowings.

For further information relating to our related party transactions, see "Financial Information - Related Party Transactions" on page 22.

AUDITORS OBSERVATIONS

There are no observations in the audit reports of our Company.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Companys activities expose it to market risk, liquidity risk and credit risk. The Companys board of directors has overall responsibility for the establishment and oversight of the Companys risk management framework.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. Financial instruments affected by market risk include loans, borrowings, term deposits, and investments.

(i) Foreign currency risk

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Credit Risk

Credit risk is the risk that a counterparty fails to discharge its obligation to our Group. Our exposure to credit risk is influenced mainly by cash and cash equivalents and trade receivables. We continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

Liquidity Risk

Liquidity risk is the risk that our Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. Our approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due. Our management monitors rolling forecasts of our liquidity position and cash and cash equivalents on the basis of expected cash flows. We take into account the liquidity of the market in which the entity operates.

CHANGES IN ACCOUNTING POLICIES

There have been no changes in our accounting policies during Fiscals 2024, 2023, 2022 and 2021. For further information, see "Restated Financial Statements" on page 181.

Information required as per Item 11 (II) (C) (iv) of Part A of Schedule VI to the SEBI Regulations:

1. Unusual or infrequent events or transactions.

Except as described in this Red Herring Prospectus, as on date, there have been no unusual or infrequent events or transactions including unusual trends on account of business activity, unusual items of income, change of accounting policies and discretionary reduction of expenses.

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

Apart from the risks as disclosed under Section "Risk Factors" beginning on page 26, 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 titled "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

Our Companys future costs and revenues will be determined by demand/supply situation, both of the end products as well as the government policies and budget constraints of our customer(s).

5. Increases in net sales or revenue and Introduction of new products or services or increased sales prices.

Increases in revenues are by and large linked to increases in volume of business.

6. Total turnover of each major industry segment in which the Issuer Company operates.

We operate only in the paper manufacturing industry engaged in manufacturing recycled paper-based Duplex Board products where we and our entire revenue from operations is generated from this industry. Details of the industry turnover and other relevant information is disclosed in the section "Industry Overview" beginning on page 101 of this Red Herring Prospectus.

7. Status of any publicly announced new products or business segment.

Our Company has not announced any new services or business segment.

8. The extent to which business is seasonal.

For further information, see "Risk Factors" on page 26 of this Red Herring Prospectus.

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

Significant proportion of our revenues have historically been derived from a limited number of customers. The % of Contribution of our Companys customers and suppliers vis-a-vis the total revenue from operations and raw materials purchase respectively for the financial year 2024, 2023, 2022 and 2021 based on Restated Financial Statements are as follows:

	Fiscal
Category	2024		2023		2022		2021
	Amount (Rs lakhs)	% of total Revenue	Amount (Rs lakhs)	% of total Revenue	Amount (Rs lakhs)	% of total Revenue	Amount (Rs lakhs)	% of total Revenue
Top 1 customer	2,542.26	9.34%	3,016.04	9.22%	3,887.83	12.43%	1,508.31	9.14%
Top 5 customers	8,155.33	29.96%	9,459.41	28.91%	13,497.60	43.14%	5,883.97	35.64%
Top 10 customers	12,316.15	45.24%	15,738.15	48.09%	19,980.02	63.85%	9,411.94	57.01%

10. Competitive conditions

Competitive conditions are as described under the Sections titled "Industry Overview" and "Our Business" beginning on pages 101 and 132 respectively of this Red Herring Prospectus.

Except as disclosed in this Red Herring Prospectus, there are no significant developments or circumstances that have arisen since March 31, 2024 the date of the last financial statements included in this Red Herring Prospectus:

Our company has not incorporated any subsidiary or made any investment in any other company after March 31, 2024.

Further, except as disclosed in this Red Herring Prospectus, there are no circumstances that have arisen since March 31, 2024, the date of the last financial statements included in this Red Herring Prospectus, which materially and adversely affect or is likely to affect our operations or profitability, or the value of our assets or our ability to pay our material liabilities within the next twelve months.