Twinkle Papers Ltd Management Discussions

OF O MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION PERATION

The following discussion is intended to convey management s perspective on our financial condition and results of operations for the financial year ended March 31, 2025, March 31, 2024 and March 31, 2023 and for the period ended December 31, 2025. One should read the following discussion and analysis of our financial condition and results of operations in conjunction with our section titled Financial Statements and the chapter titled Financial Information on page 254 of the Red Herring 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 28 of this Red Herring Prospectus. Actual results could differ materially from those contained in any forward-looking statements and for further details regarding forward-looking statements, kindly refer the chapter titled Forward-Looking Statements on page 26 of this Red Herring 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

Twinkle Papers Ltd, our Company. Unless otherwise indicated, financial information included herein is based on our Restated Financial Statements for stub period December 2025 and Financial Years 2025, 2024 & 2023 included in this Red Herring Prospectus beginning on page 254 of this Red Herring Prospectus.

BUSINESS OVERVIEW

Our company was originally incorporated as a Private Limited Company namely Twinkle Papers Private Limited under the Companies Act, 1956 vide Certificate of Incorporation dated September 27, 1995 issued by Registrar of Companies, ROC Chandigarh. Thereafter, our Company was converted into a Public Limited Company in pursuance of a special resolution passed by the members of our Company at the Extra Ordinary General Meeting held on May 04, 2023. A fresh Certificate of Incorporation consequent to conversion was issued on May 19, 2023 by the Registrar of Companies, ROC Chandigarh and consequently the name of our

Company was changed from Twinkle Papers Private Limited to Twinkle Papers Limited . The Company s Corporate Identification Number is U22012PB1995PLC017091. Twinkle Papers Limited is manufacturer of Corrugated Boxes and polymer-based molded packaging products. We are engaged in this industry from the last 28 years. Our company is located in Malerkotla (30 kms from Ludhiana) on Ludhiana-Patiala highway.

Our journey began in 1999 with the installation of our first blow molding machine, which allowed us to start manufacturing poly jars and HDPE cans. Over time, we expanded our capabilities by introducing new technologies:

In 2021 , we installed an injection molding machine to manufacture plastic crates.

In 2022 , we installed a rotational molding machine for making roto-molded pallets.

In 2023 , we further strengthened our plastic product line by installing another injection molding machine to produce plastic pallets.

Today, we manufacture a wide range of packaging and material handling products, including:

1. Corrugated Boxes

2. Plastic Pallets

3. Crates

4. HDPE Cans, Poly Jars, Jerry Cans, and Drums

5. Polythene Sheets and Poly Bags

6. Plastic Chairs

Our plastic products are made using advanced technologies like blow molding, injection molding, and rotational molding. These are mainly used in industries such as food, dairy, construction chemicals, pharmaceuticals, textiles, and more.

We sell all our products under the brand name Twinkle , and currently serve approximately 145 customers across multiple industries. Our in-house R&D team works closely with clients to design custom polymer solutions that address their specific packaging challenges. Our Manufacturing facilities also complies with ISO 9000: 2015 systems.

One of our promoters, Mr. Amit Jain, has an experience of over 30 years in the packaging industry and he has played a pivotal role in shaping the companys direction and growth.

KEY PERFORMANCE INDICATORS OF OUR COMPANY

Key Financial Performance	December 31, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Revenue from operations (1)	7,206.56	8,164.66	5,789.43	5,444.60
EBITDA (2)	1075.15	962.51	847.05	546.62
EBITDA Margin (3)	14.92%	11.79%	14.63%	10.04%
PAT (4)	540.11	346.79	159.50	89.93
PAT Margin (5)	7.49%	4.25%	2.76%	1.65%
Net Worth (6)	2,493.70	1,953.60	1,106.81	946.12
Return on Net Worth (7)	21.66%	17.75%	14.41%	9.51%
ROCE (8)	18.82%	22.83%	29.96%	20.48%

Notes:

(1) Revenue from operations is the revenue generated from operations by our Company.

(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 is mentioned as profit after tax for the period. (5) PAT Margin is calculated as PAT for the period/year divided by revenue from operations.

(6) Net Worth means the aggregate value of the paid-up share capital and reserves and surplus of the company.

(7) ROE/RONW: Return on Equity is calculated as PAT divided by closing shareholders equity

(8) ROCE: Return on Capital Employed is calculated as EBIT divided by capital employed, which is defined as shareholders equity plus long-term debt.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL YEAR AND STUB PERIOD

As per mutual discussion between the Board of the Company and Lead Manager, in the opinion of the Board of the Company there have not arisen any circumstances since the date of the last financial statements as disclosed in the Red Herring Prospectus and which materially and adversely affect or is likely to affect within the next twelve months.

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS SIGNIFICANT 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 26 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

Changes, if any, in the regulations / regulatory framework / economic policies in India and / or in foreign countries, which affect national & international finance.

Substantial portion of our revenues has been dependent upon few customers. The loss of any one or more of our major customers would have a material adverse effect on our business, cash flows, results of operations and financial condition.

We generally do business with our customers on purchase order basis and do not enter into long term contracts with them. Our inability to maintain relationships with our customers could have an adverse effect on our business, prospects, results of operations and financial condition.

Higher capacity utilization results in greater production volumes and higher sales and allows us to spread our fixed costs over a higher quantity of products sold, thereby increasing our profit margins. Our capacity utilization is affected by the product requirements of, and procurement practice followed by, our customers.

Plastics products being a global industry, we face competition from various domestic and international manufacturers and traders. Competition emerges from organised as well as unorganised players in the plastic product industry. Failure to adapt to the changing needs of industry may adversely affect our business and financial condition;

Catering to diverse industry such as textile mills, paper mills and shoes industries for corrugated boxed and Food and Beverage, healthcare, paint industry, packaging industry, chemical industry etc. for HDPE plastic enhances the demand for the product in the market.

Inflation, deflation, unanticipated turbulence in interest rates,

Our dependence on our key personnel, including our directors and senior management;

Our ability to successfully implement our business strategy and plans;

The occurrence of natural disasters or calamities;

Other factors beyond our control

DISCUSSION ON RESULT OF OPERATION

(Amount in Lakhs)

Particulars For the %age of For the %age of For the For the period Total year Total year %age of year %age of ended 31 Income ended 31 Income ended 31 Total ended 31 Total December, March, March, Income March, Income 2025* 2025 2024 2023 Income

Revenue from

DISCUSSION ON RESULT OF OPERATION

(Amount in Lakhs)

Particulars	For the period ended 31 December, 2025*	%age of Total Income	For the year ended 31 March, 2025	%age of Total Income	For the year ended 31 March, 2024	%age of Total Income	For the year ended 31 March, 2023	%age of Total Income
Income
Revenue from
	7206.56	98.55	8164.66	97.26	5789.43	98.55	5444.60	99.07
Operations
Other Income	106.25	1.45	233.33	2.78	85.18	1.45	51.27	0.93
Total Income (I +
	7312.81	100	8397.99	100	5874.61	100	5495.86	100
II)
Expenditure
Cost of Material
	6000.53	82.06	7252.99	86.40	4773.53	81.26	4370.14	79.52
Consumed
Changes in inventories of finished goods, work-in-progress and traded goods	(409.80)	(5.60)	(826.65)	(9.85)	(759.91)	(12.94)	(237.46)	(4.32)
Employee benefits expenses	174.04	2.38	215.85	2.57	290.94	4.95	260.45	4.74
Finance cost	382.53	5.23	440.79	5.25	390.08	6.64	289.85	5.27
Other expenses	366.66	5.01	559.96	6.67	637.81	10.86	504.84	9.19
Depreciation &
Amortization	294.16	4.02	308.87	3.68	262.67	4.47	183.77	3.34
Expenses
Total expenses	6808.11	93.10	7951.81	94.73	5595.12	95.24	5371.60	97.74
Profit Before
	504.70	6.90	446.19	5.32	279.49	4.76	124.27	2.26
Taxation
Current Tax	141.79	1.94	130.78	1.56	71.54	1.22	25.82	0.47
Deferred Tax	(177.20)	(2.42)	(17.15)	(0.20)	47.35	0.81	8.52	0.16
Earlier Years Tax
	0.00	0.00	(14.24)	(0.17)	1.09	0.02	0.00	0.00
Expense
Total tax expense	(35.41)	(0.48)	99.40	1.18	119.99	2.04	34.34	0.62
Profit After Tax but Before Extra- ordinary Items	540.11	7.39	346.79	4.13	159.50	2.72	89.93	1.64
Extraordinary
	-	-	-	-	-	-	-	-
Items
Profit Attributable to Minority	-	-	-	-	-	-	-	-
Shareholders
Net Profit after adjustments	540.11	7.39	346.79	4.13	159.50	2.72	89.93	1.64

Net Profit
Transferred to	540.11	7.39	346.79	4.13	159.50	2.72	89.93	1.64
Balance Sheet

* December figures are not Annualized.

Our Significant Accounting Policies

For Significant accounting policies please refer Significant Accounting Policies, under Chapter titled Financial Statements beginning on 261 of the Red Herring Prospectus.

Reservations, Qualifications and Adverse Remarks

The Examination Report issued by our Statutory Auditors has no reservations, qualifications and adverse remarks.

Revenue Recognition Method adopted by the company

Sales/Revenue Recognition: Sales are recognized, net of returns, on dispatch of goods to customers or as per the terms of contract and are reflected in the accounts at gross realizable value but Sales tax recovered is excluded.

Income from investments/interest is recognized when declared/accrued.

In the opinion of the Management and to the best of their knowledge and belief the value of the realization of Sundry Debtors and Other Current Assets in the ordinary course of business, will not be less than the amount at which they are stated in the Balance Sheet and provisions for all known liabilities have been made.

Overview of Revenue & Expenditure

The following discussion on results of operations should be read in conjunction with the Restated Financial statements for the period ended on December 31, 2025 and Financial Year 2025, 2024 & 2023. Our revenue and expenses are reported in the following manner:

Revenue Bifurcation

Product wise bifurcation

Product wise bifurcation is mentioned under chapter titled Our Business on page 174 of this Red Herring Prospectus under the head Product wise Revenue Breakup .

Geographical bifurcation

Geographical bifurcation is mentioned under chapter titled Our Business on page 176 of this Red Herring Prospectus under the head Geographical Breakup of Revenue .

Revenues

Revenue of operations

Our Company s revenue is primarily generated from the sale of products categorized into molded industrial packaging such as blow molded products, injection molded products and Roto molding machine.

Other Income

Other Income includes rebates and discount received, interest received and other such miscellaneous income.

Expenditure

Our total expenditure primarily consists of purchase of stock in trade, cost of material consumed, Change in inventories, Employee benefit expenses, and Other Expenses. We also have incurred financial charges and depreciation as expenditure.

Cost of Material Consumed

It includes purchase of raw material such as kraft paper, starch powder, Stitching wire, chemicals, granules, rings, rubber, steel strips etc, along with opening stock of raw materials.

Change in Inventory

It means the difference between total of opening and closing inventories. This includes finished goods, work in progress and scrap (process scrap) of inventory.

Employment Benefit Expenses

Our employee benefits expense primarily comprises of Salaries and Wages, Staff welfare expenses, director s remuneration and contribution to provident and other funds etc.

Finance Cost

It includes Interest Expense on Borrowings and other Financial Expenses.

Depreciation and Amortization Expenses

Depreciation includes depreciation on Buildings, Plant & Equipment, Furniture & Fixtures, Computers, office equipment etc.

Other Expenses

Other Expenses includes direct expenses such as manufacturing expenses such as power expenses, fuel consumed etc. It also includes administrative and other expenses such as travelling expenses, repair and maintenance expenses, freights and octroi etc.

PERIOD ENDED DECEMBER 31, 2025, COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2025 (BASED ON RESTATED FINANCIAL STATEMENTS)

Revenues

Total Income

Total Income for the period ended December 31, 2025, stood at Rs.7,312.81 Lakhs whereas in Financial Year 2024-25 it stood at Rs. 8,397.99 Lakhs, which is almost equivalent to 87.08% of the Total Income registered in full Financial Year 2024-25. This is due to increase in Revenue from Operations & Other Income.

Revenue from operations

Total Revenue from Operations for the period ended December 31, 2025, stood at Rs.7206.56 Lakhs whereas in the Financial Year 2024-25 it stood at Rs. 8,164.66 Lakhs, which is almost equivalent to 88.27% of the Total Revenue from Operations registered in full Financial Year 2024-25. This proportion indicates that the

Company s revenue performance for the current period is largely consistent with the previous year, reflecting a stable trend with nominal growth.

Other Income

Other Income for the Period ended December 31, 2025, stood at Rs. 106.25 Lakhs whereas in Financial Year 2024-25 it stood at Rs. 233.33 Lakhs, which represents 1.45% and 2.78% of the Total Income of corresponding periods respectively. It comprises of interest and discount received from suppliers. Other Income decreased during the period primarily on account of a decline in purchase discounts received from suppliers. The reduction in discounts is attributable to the Company s procurement strategy involving advance payments for pallet purchases to secure timely supply and mitigate operational risks. As suppliers generally do not extend purchase discounts where advance payments are made, the level of discounts availed during the period was lower, resulting in a corresponding decrease in Other Income.

Expenditure

Total Expenses

Total Expenses for the Period ended December 31, 2025, stood at Rs. 6,808.11 Lakh whereas in Financial Year 2024-25 it stood at Rs. 7,951.81 Lakh, which represents 93.10% and 94.69% of the Total Income of corresponding period, which is mainly due to overall increase & decrease in the Components of Total Expenses has affected the Amount.

Cost of Material Consumed

Total cost of material consumed for the period ended December 31, 2025 stood at 6,000.53 lakh, as compared to 7,252.99 lakh for the financial year 2024 25, representing 82.06% and 86.40% of the total income of the respective periods. The material cost incurred during the period is approximately 82.73% of the total cost of material consumed in FY 2024 25, which is broadly in line with the proportionate revenue generated during the period and reflects improved operational efficiency. Further, the comparatively lower increase in material consumption vis-à-vis revenue growth is attributable to a higher contribution from Plastic Crates and pallets, which are high-margin products generating higher sales value with relatively lower material input costs. Additionally, the use of low-cost steel rods in the manufacturing process increases the weight and value of finished products without a proportionate increase in material consumption, resulting in revenue growth outpacing material cost growth.

Change in Inventory

Total change in inventory for the Period ended December 31, 2025, stood at Rs. (409.8) lakhs whereas in financial year 2024-25 it stood at Rs. (826.65) lakhs, which represents (5.60) % and (9.85) % of the total income of corresponding periods respectively. The lower change in inventory during the stub period is primarily due to a similar level of closing inventory of finished goods, amounting to Rs. 2,646.89 lakhs, which resulted in a comparatively smaller impact on the change in inventory for the period.

Employment Benefit Expenses

Employee benefit expenses for the Period ended December 31, 2025, stood at Rs. 174.04 Lakhs whereas in Financial Year 2024-25 it stood at Rs 215.85 Lakhs which represents 2.38% and 2.57% of the Total revenue of corresponding periods respectively. This Decrease is primarily due to the combination of an almost stagnant employment base and nominal growth in Revenue from Operations. This dynamic reflects improved operational efficiency, as the labor-to-revenue ratio has declined, indicating that the company is generating higher revenues without a proportional increase in work force-related costs.

Other Expenses

The Other Expenses for the Period ended December 31, 2025, stood at Rs. 366.66 Lakhs whereas in Financial Year 2024-25 it stood at Rs. 559.96 Lakhs, which represents 5.01% and 6.67% of the Total Income of corresponding periods respectively. This is due to lower fuel and power expenses consumption. In particular, fuel and power expenses were reduced owing to operational efficiencies. Additionally, certain suppliers and customers undertook transportation using their own vehicles, which led to lower freight and fuel-related costs for the Company, contributing to the overall reduction in Other Expenses.

Depreciation and Amortization Expenses

The Depreciation and Amortization Expenses for the Period ended December 31, 2025, stood at Rs. 294.16 Lakhs whereas in Financial Year 2024-25 it stood at Rs. 308.87 Lakhs, which represents 4.02% and 3.68% of the total income of corresponding period respectively. The company uses the Written Down Value (WDV) method for calculating depreciation as prescribed under Schedule II of the Companies Act, which accelerates depreciation in earlier years compared to a straight-line method.

Finance Cost

Finance Cost for the Period ended December 31, 2025, stood at Rs. 382.53 Lakhs whereas in Financial Year 2024-25 it stood at Rs. 440.79 Lakhs, which represents 5.23% and 5.25% of the Total Income of corresponding periods respectively and is equivalent to 86.78% of the finance cost incurred in full Financial Year 2024-25.

Restated Profit before Tax

The restated profit before tax for the Period ended December 31, 2025, stood at Rs. 504.7 Lakhs whereas in Financial Year 2024-25 it stood at Rs. 446.19 Lakhs, which represents 6.90% and 5.32% of the Total Income of corresponding periods respectively. The improvement in profitability is primarily attributable to an increase in operational efficiency, which resulted in enhanced margins during the period.

Restated Profit after Tax

The restated profit after tax for the Period ended December 31, 2025, stood at Rs. 540.11 Lakhs whereas in Financial Year 2024-25 it stood at Rs. 332.55 Lakhs which represents 7.39% and 3.96% of the Total Income of corresponding periods respectively, in line with Profit before Tax.

Reasons for increase in PAT margins:

The improvement in profit after tax margins during the year is attributable to the Company s effective leverage of economies of scale, which led to enhanced cost efficiencies across operations. Manufacturing efficiencies improved, energy consumption was optimised, and fixed overheads were absorbed over a higher production base, resulting in lower per-unit costs. In addition, an increased contribution from high-margin pallet products favourably impacted the overall product mix, leading to improved revenue realisation. Collectively, these factors strengthened operational performance and resulted in an expansion of PAT margins during the period.

The PAT margin for the stub period stands at 7.49%, compared to 4.25% in FY 2025. The improvement is primarily attributable to the recognition of a deferred tax asset arising from timing differences between depreciation rates prescribed under the Income Tax Act and the Companies Act. This resulted in a reversal of the previously recognized deferred tax liability, thereby positively impacting profit after tax and enhancing the PAT margin during the period.

Higher capacity utilization : Due to high-capacity utilization in stub period of 85.21% from 76.46% for HDPE plastic divisions, it operated more efficiently and in turn incurring lower cost from operations, leading to better profit margins.

During the year led to increased production volumes and sales, enabling the company to spread fixed costs over a larger quantity of products sold, thereby improving profit margins. This improvement was influenced by customer product requirements and procurement practices, contributing to the change in Profit After Tax (PAT).

Profit doubled whereas Revenue from operations has not increased to that extent is due to the following reasons:

1. Product Mix: We have diversified our Product mix due to introduction of high Profit Margin Product which is better priced than other products without requiring a substantial increase in Total revenue.

2. Economies of Scale: This year, we have successfully leveraged economies of scale, resulting in cost efficiencies across multiple areas. Our manufacturing processes have become more efficient, energy consumption has been optimized, and overhead costs per unit have decreased significantly. These improvements have strengthened our operational effectiveness and enhanced overall profitability.

DETAILS OF FINANCIAL YEAR 2025 COMPARED TO FINANCIAL YEAR 2024 (BASED ON RESTATED FINANCIAL STATEMENTS)

Revenues

Total Income

Total Income for the Financial Year 2024-25, it stood at Rs. 8,397.99 Lakhs whereas in Financial Year 2023-24 it stood at Rs. 5874.61 Lakhs representing an increase of 42.95%. This is due to increase in Revenue from Operations & Other Income.

Revenue of operations

Net revenue from operations For the Financial Year 2024-25 stood at Rs. 8164.66 Lakhs. Whereas for the Financial Year 2023-24, it stood at Rs. 5,789.43 Lakhs representing an increase of 41.03%. Injection Pallets were added to the product mix during the fiscal year 2023 24. This addition expanded the product range and aligned with market requirements, resulting in increased revenue. This is due to increase in sale of pallets and cans and jerry cans due to synergy benefits.

Reasons for Growth of pallets in FY 2024-25:

1. Market Demand Growth : Industries such as pharmaceuticals and food and beverage have experienced increase in demand due to hygiene issues as pallets are essential for maintaining hygiene and preventing contamination in storage and logistics. Companies prefer to place raw materials and finished products on pallets rather than directly on the floor, ensuring cleanliness and compliance with safety standards Overall, Indian HDPE market reached approximately 3,450 thousand tonnes in FY 2023 and is projected to grow at a CAGR of 6.79% by FY 2030*. This growth is driven by increasing demand for HDPE-based products across various industries. This global factor has also increased our Pallet Sale on individual level as well.

*Source: India HDPE Market Size, Share, Growth & Industry Report, 2030

2. Marketing & Exhibitions : As company focused on driving pallet sales growth, their capital expenditure was specifically allocated to integrating pallets into product portfolio. Consequently, they intensified marketing efforts, expanding customer reach and securing a broader market presence, which ultimately led to an increase in sales.

3. Synergy Benefits: During the FY 2024-25, the strengthened market position of pallets significantly enhanced brand awareness for Twinkle Papers. As a result, some customers who initially purchased pallets due to the strong brand image began buying other products such as jerry cans, crates, and more. This cross-selling effect, driven by the success of pallets, contributed to increased sales across the broader product range.

Other Income

Other Income for the Financial Year 2024-25 stood at Rs. 233.33 Lakhs. Whereas for the Financial Year 2023-24, it stood at Rs. 85.18 Lakhs representing an increase of 148.15 lakhs. This increase is due to higher rebates and discounts received of Rs. 210.16 lakhs. Primarily on account of rebates and discounts received from suppliers for timely payments and early settlement of dues within the stipulated credit period. Improved liquidity management and disciplined payment practices enabled the Company to avail such incentives, resulting in a corresponding increase in Other Income.

Expenditure

Total Expenses

Total Expenses for the Financial Year 2024-25 stood at Rs. 7951.81 Lakhs. Whereas for the Financial Year 2023-24, it stood at Rs. 5,595.12 Lakhs representing an increase of 42.12%. The overall increase & decrease in the Components of Total Expenses has affected the Amount which is in line with increase in revenue from operations.

Cost of Material Consumed

Total cost of material consumed for the Financial Year 2024-25, stood at Rs. 7,252.99 Lakh. Whereas for the financial year 2023-24, it stood at Rs. 4,773.53 lakhs representing an increase of 51.94%. It also reflects 86.40% and 81.26% of total income of the respective years. This growth in material co1qq2nsumption is driven by higher raw material purchases for product in FY 2024-25 i.e. pallets thus leading to increase in cost of material consumed. The companys diverse product portfolio (corrugated boxes, HDPE drums, jerry cans) requires different types of raw materials. Variations in demand across these product lines shift the material consumption costs. Also, in FY 2023-24 there was an import of granules used in HDPE products, which in FY 2024-25 was procured from domestic market at cheaper prices along with higher capacity utilization of HDPE plastic division from 75% in FY 2023-24 to 76.46% in FY 2024-25, leading to lower cost of material consumed in respect to total income.

Change in Inventory of finished stock and work in Progress

Total change in inventory for the Financial Year 2024-25, stood at Rs. (826.65) lakhs whereas in financial year 2023-24 it stood at Rs. (759.91) lakhs, representing a decrease of 66.74 lakhs. This decline is primarily attributable to higher closing stock of finished goods and work-in-progress. There was a consistent flow of production orders. Raw materials were procured in alignment with these orders to ensure continuous production and timely fulfillment. Adequate inventory levels were maintained to avoid production delays and meet delivery timelines.

Employment Benefit Expenses

Employee benefit expenses for the Financial Year 2024-25 stood at Rs. 215.85 Lakhs. Whereas for the Financial Year 2023-24, it stood at Rs. 290.94 Lakhs representing a decrease of 25.81%. This Decrease is primarily due to the combination of an almost stagnant employment base and significant growth in Revenue from Operations. This dynamic reflects improved operational efficiency, as the labor-to-revenue ratio has declined, indicating that the company is generating higher revenues without a proportional increase in workforce-related costs. Also, During the FY 2024-25, a few high-salaried employees resigned. These positions were subsequently filled by new hires at lower compensation levels, resulting in an overall reduction in employee benefit expenses, despite an increase in the total number of employees.

Other Expenses

The Other Expenses for the Financial Year 2024-25 stood at Rs. 559.96 Lakhs. Whereas for the Financial Year 2023-24, it stood at Rs. 637.81 Lakhs representing a decrease of 12.21%. The reduction was primarily attributable to improved cost control measures, including lower vehicle maintenance and repair expenses supported by reduced fuel consumption. The reduction was primarily attributable to improved cost control measures, including lower vehicle maintenance and repair expenses supported by reduced fuel consumption.

Depreciation and Amortization Expenses

The Depreciation and Amortization Expenses for the Financial Year 2024-25, stood at Rs. 308.87 Lakhs whereas in Financial Year 2023-24 it stood at Rs. 262.67 Lakhs, representing an increase of 17.59% mainly due to capitalization of new assets such as plant machinery and buildings during FY2024, for which depreciation was provided for full year in FY 2024-25.

Finance Cost

Finance Cost for the Financial Year 2024-25 stood at Rs. 440.79 Lakhs whereas in Financial Year 2023-24, it stood at Rs. 390.08 Lakhs representing an increase of 13%. The increase in NBFC and business loans has increased Bank Interest during the year

Restated Profit before Tax

The restated profit before tax For the Financial Year 2024-25 stood at Rs. 446.19 Lakhs. Whereas for the Financial Year 2023-24, it stood at Rs. 279.49 Lakhs, which is equivalent to 5.32% and 4.76% of the total income incurred in the respective Financial Years. This growth is primarily attributable to the robust growth in revenue, which outpaced the rise in operating costs.

Restated Profit after Tax

The restated profit after tax For the Financial Year 2024-25 stood at Rs. 346.79 Lakhs. Whereas for the Financial Year 2023-24, it stood at Rs. 159.50 Lakhs which is equivalent to 4.13% and 2.27% of the total income incurred in the respective Financial Years. This is attributed to the efficient tax management as we can see the decrease in deferred tax liability, reflecting the increase in Profit after Tax.

Reasons for increase in PAT margins:

Profit doubled whereas Revenue from operations has not increased to that extent is due to the following reasons:

1. Product Mix: We have diversified our Product mix due to introduction of high Profit Margin Product which is better priced than other products without requiring a substantial increase in Total revenue.

2. Economies of Scale: This year, we have successfully leveraged economies of scale, resulting in cost efficiencies across multiple areas. Our manufacturing processes have become more efficient, energy consumption has been optimized, and overhead costs per unit have decreased significantly. These improvements have strengthened our operational effectiveness and enhanced overall profitability.

DETAILS OF FINANCIAL YEAR 2024 COMPARED TO FINANCIAL YEAR 2023 (BASED ON RESTATED FINANCIAL STATEMENTS)

Revenues

Total Income

Total Income for the Financial Year 2023-24, it stood at Rs. 5874.61 Lakhs whereas in Financial Year 2022-23 it stood at Rs. 5495.86 Lakhs representing an increase of 6.89%. This is due to increase in Revenue from Operations & Other Income.

Revenue of operations

Net revenue from operations For the Financial Year 2023-24 stood at Rs. 5,789.43 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 5,444.60 Lakhs representing an increase of 6.33%. Injection Pallets were added to the product mix during the fiscal year 2023 24. This addition expanded the product range and aligned with market requirements, resulting in increased revenue.

Other Income

Other Income for the Financial Year 2023-24 stood at Rs. 85.18 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 51.27 Lakhs representing an increase of 33.91 lakhs. This increase is due to higher rebates and discounts received and interest income ( 14.55 lakhs).

Expenditure

Total Expenses

Total Expenses for the Financial Year 2023-24 stood at Rs. 5,595.12 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 5,371.60 Lakhs representing an increase of 4.16%. The overall increase & decrease in the Components of Total Expenses has affected the Amount.

Cost of Material Consumed

Total cost of material consumed for the Financial Year 2023-24, stood at Rs. 4,773.53 Lakh. Whereas for the financial year 2022-23, it stood at Rs. 4,370.14 lakhs representing an increase of 9.23%. This growth in material consumption is driven by higher raw material purchases for new product introduced in FY 2023-24 i.e. pallets thus leading to increase in cost of material consumed.

Change in Inventory of finished stock and work in Progress

Total change in inventory for the Financial Year 2023-24, stood at Rs. (759.91) lakhs whereas in financial year 2022-23 it stood at Rs. (237.46) lakhs, representing a decrease of 522.45 lakhs. This decline is primarily attributable to higher closing stock of finished goods and work-in-progress. There was a consistent flow of production orders. Raw materials were procured in alignment with these orders to ensure continuous production and timely fulfillment. Adequate inventory levels were maintained to avoid production delays and meet delivery timelines.

Employment Benefit Expenses

Employee benefit expenses for the Financial Year 2023-24 stood at Rs. 290.94 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 260.45 Lakhs representing an increase of 11.71%. This increase is due to salary increments and additional hiring, as no. of employees was 253 in FY 2022-23 which increased to 278 in FY 2023-24, leading to increase in employee benefit expense.

Other Expenses

The Other Expenses for the Financial Year 2023-24 stood at Rs. 637.81 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 504.84 Lakhs representing an increase of 26.34%. This Increase is primarily driven by higher manufacturing expenses (e.g., power and fuel costs), administrative costs, and freight charges.

Depreciation and Amortization Expenses

The Depreciation and Amortization Expenses for the Financial Year 2023-24, stood at Rs. 262.67 Lakhs whereas in Financial Year 2022-23 it stood at Rs. 183.77 Lakhs, representing an increase of 42.93% mainly due to capitalization of new assets such as plant machinery and buildings during FY2024.

Finance Cost

Finance Cost for the Financial Year 2023-24 stood at Rs. 390.08 Lakhs whereas in Financial Year 2022-23. it stood at Rs. 289.85 Lakhs representing an increase of 34.58%. Increase in the borrowings for capital expansion increased both Interest expenses and bank charges, driving the growth in finance cost.

Restated Profit before Tax

The restated profit before tax For the Financial Year 2023-24 stood at Rs. 279.49 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 124.27 Lakhs, which is equivalent to 4.76% and 2.26% of the total income incurred in the respective Financial Years. This growth is primarily attributable to the robust growth in revenue, which outpaced the rise in operating costs.

Restated Profit after Tax

The restated profit after tax For the Financial Year 2023-24 stood at Rs. 159.50 Lakhs. Whereas for the Financial Year 2022-23, it stood at 89.93 Lakhs which is equivalent to 2.27% and 1.64% of the total income incurred in the respective Financial Years. This is attributed to the efficient tax management as we can see the decrease in deferred tax liability, reflecting the increase in Profit after Tax.

Increase in Profit Margin: Contributing Factors

1. Introduction of Injection Pallets : Injection Pallets were added to the product mix during the fiscal year 2023 24. This addition expanded the product range and aligned with market requirements, resulting in increased revenue.

2. Order Procurement : The Marketing Team procured orders from new customers for pallets which were around 30 in FY 2022-23 and increased to around 80 in FY 2023-24, hence developing market leading to overall sales volume.

3. Capex and Team Performance : Capital expenditure was incurred for new machines. To cover the cost of capital and financial expenses, the team focused on delivering higher output and increased profitability.

Property Plant and Equipment

( in lakhs)

	31 st Dec,	FY 2024-	FY 2023-	FY 2022-
Particulars
	2025	25	24	23
Gross Block- Opening Balance	3,888.41	3,063.21	2,148.26	1,777.41
Addition/(sale) during the year	1,361.07	825.20	914.95	370.84
Gross Block- Closing Balance	5,249.48	3,888.41	3,063.21	2,148.26
Accumulated Depreciation- opening balance	1,705.60	1,396.73	1,134.07	950.29
Depreciation during the year	294.16	308.87	262.67	183.76
Deletion during the year	-	-	-	-
Accumulated Depreciation- Closing balance	1,999.76	1,705.60	1,396.73	1,134.06
Total Net block of Tangible assets	3,249.72	2,182.81	1,666.47	1,014.20

Cash Flows

The table below summarize our cash flows from our Restated Financial Information for the period ending 31 st December, 2025 and financial year ended on March 2025, 2024 and 2023.

( in Lakhs)

	31 st Dec,
		FY 2024-	FY 2023-	FY 2022-
Particulars	2025
		25	24	23
Net cash (used in)/ generated from operating activities	196.31	666.85	931.85	(3.58)
Net cash (used in)/ generated from investing activities	(1078.14)	(1452.02)	(928.17)	(376.51)
Net cash (used in)/ generated from financing activities	907.75	749.58	36.33	403.98
Net increase/(decrease) in cash and cash equivalents	25.93	(35.58)	40.01	23.90
Cash and Cash Equivalents at the beginning of the period	45.72	81.30	41.29	17.40
Cash and Cash Equivalents at the end of the period	71.65	45.72	81.30	41.29

Net cash from/ (used in) Operating Activities

For Period ending December 2025, net cash flow generated from operating activities was 196.31 lakhs as compared to Profit Before Tax of 504.70 lakhs. We had operating profit before working capital changes of

1,146.33 lakhs primarily as a result of depreciation and finance cost of 294.16 lakhs and 382.53 lakhs respectively.

For the fiscal year ending March, 2025, net cash flow generated from operating activities was 666.85 lakhs as compared to Profit Before Tax of 446.19 lakhs. We had operating profit before working capital changes of 1162.41 lakhs primarily as a result of depreciation and finance cost of 308.87 lakhs and 440.79 lakhs respectively.

For the fiscal year ending March, 2024, net cash flow from operating activities was 931.85 lakhs as compared to Profit Before Tax of 279.49 lakhs. We had operating profit before working capital changes of 870.74 lakhs primarily as a result of depreciation and finance cost of 262.67 lakhs 390.08 lakhs respectively.

For fiscal year ending March 2023, net cash flow from operating activities was at (3.58) lakhs as compared to Profit Before Tax of 124.27 lakhs. We had operating profit before working capital changes of 589.68 lakhs primarily as a result of depreciation and finance cost of 183.77 lakhs and 289.85 lakhs respectively.

Net cash from/ (used in) Investing Activities

For Period ending December 2025, the net cash flow from investing activities was (1078.14) Lakhs due to net capital expenditure of Rs. (798.75) lakhs and interest on investment received of Rs. 6.52 lakhs, it also had sale of investments of Rs. 36.50 lakhs.

For the fiscal year ending March 2025, the net cash flow from investing activities was (1452.02) Lakhs due to net capital expenditure of Rs. (1395.50) lakhs and interest on investment received of Rs. 17.25 lakhs.

For the fiscal year ending March 2024, net cashflow from investing activities was (928.17) lakhs due to investments made in fixed assets of Rs. (914.95) Lakhs and interest in investment received of Rs. 14.55 lakhs.

For the fiscal year ending March, 2023, the net cashflow from investing activities was (376.51) Lakhs due to investments made in fixed assets of Rs. (370.84) lakhs and interest in investment received of Rs. 10.86 lakhs

Net cash Flow from/ (used in) Financing Activities

For the period ending December 2025, net cash flow from financing activities was 907.75 lakhs due to finance cost of 382.53 Lakhs, repayment of Long-term borrowings of Rs. 290.30 lakhs and proceeds from short-term borrowings of Rs. 999.98 lakhs.

For the fiscal year ending March 2025, net cash flow from financing activities was 749.58 lakhs due to finance cost of 440.79 Lakhs and proceeds from long and short-term borrowings of Rs. 831.54 lakhs and Rs. 358.83 lakhs respectively.

For the fiscal year ending March 2024, net cash flow from financing activities was 36.33 lakhs due to finance cost of 390.08 Lakhs and proceeds from long and short-term borrowings of Rs. 52.31 lakhs and Rs. 374.10 lakhs respectively.

For the fiscal year ending March 2023, net cash flow from financing activities was 403.98 lakhs due to finance cost of 289.85 Lakhs and proceeds from long and short-term borrowings of Rs. 394.92 lakhs and Rs. 298.91 lakhs respectively.

Financial Indebtedness

Please see Financial Indebtedness for a description of broad terms of our indebtedness on page 308 of this Red Herring Prospectus. The company has an impeccable record of servicing its debts and has consistently reduced its dependence on institutional finance, there are negligible chances of any default. In the event our lenders declare an event of default, such current and any future defaults could lead to acceleration of our obligations, termination of one or more of our financing agreements or force us to sell our assets, which may adversely affect our business, results of operations and financial condition.

Off-balance Sheet Commitments and Arrangements

We do not have any off-balance sheet arrangements, derivative instruments, swap transactions or relationships with affiliates or other unconsolidated entities or financial partnerships that would have been established for the purpose of facilitating off-balance sheet arrangements other than contingent liabilities as of December 31, 2025.

	Particulars	in lakhs
a)	TDS defaults	0.77
b)	GST related matters	8.07
c)	Income Tax related matters	22.04
	TOTAL	30.88

Outstanding Dues to Trade Payables

For purposes of the disclosure in Issue Document pursuant to the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 as amended, the Board of Directors of the Company has identified a materiality threshold of in excess 10% of total trade payables of the Company pursuant to a resolution dated February 03, 2026 and the amounts owed as of December 31, 2025 by the Company to any small scale undertaking and any other creditor equal to or exceeding such materiality threshold is identified in summary form as brought out in the tables below.

Name of Material Creditor	Amount ( Lakhs)
Creditor 1	246.87
Total	246.87

INFORMATION REQUIRED AS PER ITEM (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, 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 Risk Factors beginning on page 28 of this Red Herring Prospectus, to our knowledge there are no known significant economic changes that have or had or are expected to have a material adverse impact on revenues or income of our Company 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

Other than as described in this Red Herring Prospectus, particularly in the sections Risk Factors and Management s Discussion and Analysis of Financial Condition and Results of Operations on pages 28 and 291, respectively, to our knowledge, there are no known trends or uncertainties that are expected to have a material adverse impact on our revenues or income from continuing operations

4. Future changes in relationship between costs and revenues, in case of events such as future increase in labor or material costs or prices that will cause a material change are known.

Our Company s future costs and revenues can be impacted by an increase in labor costs as the company looks to hire talent with new skills and capabilities for the digital economy who may be in short supply.

5. Future relationship between Costs and Income

Our Company s future costs and revenues will be determined by competition, demand/supply situation,Indian Government Policies, and interest rates quoted by banks & others.

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

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

7. Total turnover of each major industry segment in which the issuer company operates.

The Company is operating in Plastic and packaging Sector. Relevant industry data, as available, has been included in the chapter titled Our Industry beginning on page 135 of this Red Herring Prospectus.

8. Status of any publicly announced new products or business segments

Our Company has not announced any new services and product and segment / scheme, other than disclosure in this Red Herring Prospectus.

9. The extent to which the business is seasonal.

Our business is not seasonal in nature.

10. Competitive Conditions

We face competition from existing and potential competitors which is common for any business. We have, over a period of time, developed certain competitive strengths which have been discussed in section titled Our Business on page 158 of this Red Herring Prospectus.

FINANCIAL INDEBTEDNESS

Based on the independent examination of Books of Accounts, Audited Financial Statements and other documents of the issuer Company, TWINKLE PAPERS LIMITED and further explanations and information provided by the management of the Companies, which we believe to be true and correct to the best of our information and belief, the financial indebtedness of the company as at 31 st December are as mentioned below: (All amounts in lacs, unless otherwise stated)

Nature of Borrowing	Outstanding as on 31st December 2025
Secured Loan	4503.05
Unsecured Loan (From Banks & NBFC \u2019 s)	234.28
Unsecured Loan (From Directors)	631.55
Total	5368.88

Secured Loans
		(All amounts in lacs, unless otherwise stated)
Sr No Name of Lender	Purpose	Sanctioned	Outstanding As on
		Amount	31st December
		(Rs.)	2025
1 Punjab National Bank - 1	Loan Against
		48.00	0.00
	Property
2 Punjab National Bank 2	Machine Loan	600.00	304.80
3 Punjab National Bank 3	Machine Loan	89.00	0.00
4 Punjab National Bank 4	GECL Loan	117.00	63.55
5 Punjab National Bank 5	Loan Against	231.00	111.80
	Property
6 Punjab National Bank 6	Machine Loan	180.00	109.29
7 Punjab National Bank 7	Car Loan	30.00	24.79
8 Punjab National Bank 8	Car Loan	17.80	11.43
9 Punjab National Bank 9	Car Loan	20.00	16.56
10 Punjab National Bank 10	Term Loan	200.00	177.54
11 Punjab National Bank 11	Term Loan	200.00	191.65
12 Punjab National Bank (Cash	Working Capital	2000.00	1997.38
Credit)	Loan (With adhoc
	facility of 300.00
	Lacs)
13 Punjab National Bank (LC Limit)	Letter of Credit	825.00	0.00
14 SBI Global Factors Ltd	Factoring Facility	450.00	39.70
15 Tata Capital limited	Building Loan	100.00	0.00
16 Tata Capital limited	Loan Against	450.00	0.00
	Property
17 HDFC Bank Limited	Car Loan	68.00	37.90
18 ICICI Bank	Car Loan	9.75	0.00
19 Union Bank of India	CC limit	600.00	607.03
20 Union Bank of India	Solvent Extraction	400.00	340.00
	plant
21 Union Bank of India	Term Loan	397.00	371.30
22 Union Bank of India	Term Loan	81.00	78.69
23 Axis Bank	Term Loan	20.00	19.64
Total		7133.55	4503.05

*The Company has availed an Adhoc Credit Limit of Rs. 3.00 Crore

1. Punjab National bank 1
Facility	Loan Against Property (Sampatti Loan)
Overall Loan Limit	Rs. 48 Lacs
Date of Sanction	29-07-2022
Interest	RLLR 9.25%+1%(Spread)-0.50%(Concession) i.e 9.75%
Tenor	51 Months
Repayment	Repayable in 51 Monthly Installments
Primary Security	Exclusive Charge on all existing and future current and movable fixed
	assets of the borrower.
Collateral Security:	Immovable Property Guarantee (Please refer Annexure A)
Personal Guarantee	Amit Jain, Ruchi Jain, Ayush jain, Raksha Jain & M/s Ganesh Solvex Oil
	Mills
2. Punjab National Bank 2
Facility	Machine Loan
Overall Loan Limit	Rs. 600 Lacs
Date of Sanction	29-07-2022
Interest	RLLR 9.25%+.75% Spread i.e 10% p.a
Tenor	78 Months
Repayment	Repayable in 78 Equated Monthly Installments
Primary Security	Exclusive Charge on all existing and future current and movable fixed
	assets of the borrower.
Collateral Security:	Immovable Property Guarantee (Please refer Annexure A)
Personal Guarantee	Amit Jain, Ruchi Jain, Ayush jain, Raksha Jain & M/s Ganesh Solvex Oil
	Mills
3. Punjab National Bank 3
Facility	Machinery Loan/ Loan Against Property
Overall Loan Limit	Rs. 89 Lacs
Date of Sanction	29-07-2022
Interest	RLLR 9.25%+.75% Spread i.e 10% p.a
Tenor	74 Months (74 Installments)
Repayment	Repayable in 74 Equated Monthly Installments
Primary Security	Exclusive Charge on all existing and future current and movable fixed
	assets of the borrower.
Collateral Security:	Immovable Property Guarantee (Please refer Annexure A)
Personal Guarantee	Amit Jain, Ruchi Jain, Ayush jain, Raksha Jain & M/s Ganesh Solvex Oil
	Mills
4. Punjab National Bank 4
Facility	GECL
Overall Loan Limit	Rs. 117.00 lacs
Date of Sanction	29-07-2022
Interest	RLLR + .85%, subject to maximum of 9.25% in terms of Bank Guidelines
	i.e 9.25%
Tenor	48 Months
Repayment	Repayable in 48 Equated Monthly Installments

Primary Security	Exclusive Charge on all existing and future current and movable fixed
	assets of the borrower.
Collateral Security:			Immovable Property Guarantee (Please refer Annexure A)
Personal Guarantee			Amit Jain, Ruchi Jain, Ayush jain, Raksha Jain & M/s Ganesh Solvex Oil
			Mills
5. Punjab National Bank			5
Facility			Loan Against Property (Sampatti Loan)
Overall Loan Limit			Rs. 231.00 lacs
Date of Sanction			29-07-2022
Interest			RLLR 9.25%+1%(Spread)-0.50%(Concession) i.e 9.75%
Tenor			77 Months
Repayment			Repayable in 77 Equated Monthly Installments
Primary Security			Exclusive Charge on all existing and future current and movable fixed
			assets of the borrower.
Collateral Security:			Immovable Property Guarantee (Please refer Annexure A)
Personal Guarantee			Amit Jain, Ruchi Jain, Ayush jain, Raksha Jain & M/s Ganesh Solvex Oil
			Mills
6. Punjab National Bank			6
Facility			Loan Against Property (Machinery Loan)
Overall Loan Limit			Rs. 180.00 lacs
Date of Sanction			29-07-2022
Interest			(RLLR 9.25%+spread 0.75%) i.e 10%
Tenor			84 Months
Repayment			Repayable in 84 Equated Monthly Installments
Primary Security			Exclusive Charge on all existing and future current and movable fixed
			assets of the borrower.
Collateral Security:			Immovable Property Guarantee (Please refer Annexure A)
Personal Guarantee			Amit Jain, Ruchi Jain, Ayush jain, Raksha Jain & M/s Ganesh Solvex Oil
			Mills
7. Punjab National Bank			7
Facility			Car Loan
Overall Loan Limit			Rs. 30.00 lacs
Date of Sanction			05-07-2024
Interest			Repo Rate (6.50%) + Mark up (2.50%) + BSP(0.25%) - Spread (0.45%)
			(subject to change in applicable rates) i.e 8.80%
Tenor			84 Months (84 Installments)
Repayment			Repayable in 84 Equated Monthly Installments
Primary Security			Toyota Innova Hycross ZX (Hybrid+Petrol)
8. Punjab National Bank			8
Facility			Car Loan
Overall Loan Limit			Rs. 17.80 Lakh
Date of Sanction			03-07-2023
Interest			RLLR+BSP(9.25-0.50%) i.e 8.75% (subject to change in applicable rates)
Tenor			84 Months (84 Installments)
Repayment			Repayable in 84 Equated Monthly Installments
Primary Security			Mahindra XUV400
9. Punjab National Bank			9
Facility			Car Loan
Overall Loan Limit			Rs. 20.00 lacs
Date of Sanction			05-06-2024
Interest			Repo Rate (6.50%) + Markup (2.50%) + BSP(0.25%) - Spread (0.45%)
			(subject to change in applicable rates) i.e 8.80%
Tenor			84 Months
Repayment			Repayable in 84 Equated Monthly Installments
Primary Security			Toyota Hyryder V E-Drive (Hybrid)
10. Punjab National Bank - 10
Facility	Machinery Loan
Overall Loan Limit			Rs. 200.00 lacs
Date of Sanction			27.02.2025
Interest			Repo Rate + BSP + Spread (0.75%) i.e 9.75%
Tenor			81 Months
Repayment			Repayable in 72 Monthly Installments after moratorium of 9 Months
Primary Security			Assets created with the term loan
11. Punjab National Bank - 11
Facility	Machinery Loan
Overall Loan Limit			Rs. 200 lacs
Date of Sanction			27.02.2025
Interest			Repo Rate + BSP i.e 9.00%
Tenor			81 Months
Repayment			Repayable in 72 Monthly Installments after moratorium of 9 Months
Primary Security			Assets created with the term loan
12. Punjab National Bank			12
Facility			Cash credit
Overall Loan Limit			Rs. 2000.00 Lacs with 300 Lacs Adhoc Facility
Date of Sanction			Renewed Every Year (as per Latest Sanction Letter 12.09.25)
Interest			RLLR i.e 9.00% +Spread 0.75% i.e 9.75%
Tenor			Running
Repayment			On demand
Primary Security			Hypothecation charge on Stock and Book Debt
Collateral Security:			Immovable Property Guarantee (Please refer Annexure A)
Personal Guarantee			Amit Jain, Ruchi Jain, Ayush jain, Raksha Jain & M/s Ganesh Solvex Oil
			Mills
13. Punjab National Bank			13
Facility			LC Limit
Overall Loan Limit			Rs. 825 Lacs
Date of Sanction		Sanction letter dated 27-02-2025
Commission		25% concession on card rates as per MSME Prime Plus Scheme
Tenor		FLC: DP or DA with usance upto 90 Days
		ILC: DP or DA with usance upto 90 Days
Repayment		On demand
Primary Security		FLC : Shipping Documents (DA/DP) including Bill of Lading/ covering
		imported Raw Materials &
		ILC: DP/DA Bills accompanied by RR \u2019 s/MTR \u2019 s of approved transport
		companies covering purchase of Raw Material/ Stores/ Spares
Collateral Security:		Immovable Property Guarantee (Please refer Annexure A)
Personal Guarantee		Amit Jain, Ruchi Jain, Ayush jain, Raksha Jain & M/s Ganesh Solvex Oil
		Mills

14. SBI Global Factors Limited 14

Facility	Factoring Facility
Overall Loan Limit	Rs. 450.00 Lacs
Date of Sanction	07-02-2025
Interest	Interest to be charges as per Interest Matrix of risk.
Tenor	90 Days
Repayment	On demand
Primary Security	Hypothecation charge on Book Debt
Collateral Security:	Post Dated Cheques of Rs. 450.00 Lacs, and sub-servient charge on Fixed assets
Personal Guarantee	Personal Guarantee of Amit Jain, Ruchi Jain and Ayush Jain
15. Tata Capital limited
Facility	Term Loan (Plant Renovation Loan)
Overall Loan Limit	Rs. 100.00 lacs
Date of Sanction	15-10-2024
Interest	11.25% (ROI is equal to LTPLR plus 2.50% i.e. 11.25 % p.a. floating interest rate)
Tenor	84 Months
Repayment	Repayable in 84 Equated Monthly Installments
Primary Security	First and exclusive charge by way of hypothecation of machinery purchased
Collateral Security:	Extension of First and exclusive charge by way of Mortgage on property situated at Khasra No. 470/120 (2-19), 471/120 (3-0), 472/121 (3-11), 473/121
	(3-10), 474/125 (4-11), 475/125 (4-10), Khatta no. 74/129, Situated at Village Jitwal Khurd, H.B. No. 37, Tehsil Ahmedgarh Distt. Malerkotla Punjab ,together with all structures and appurtenances thereon, present and future standing in the name of Twinkle Papers Ltd having clear and marketable title having present market value of Rs 4.79 Cr
Personal Guarantee	Irrevocable and unconditional Personal guarantee of Amit Jain, Ruchi Jain
16. Tata Capital limited
Facility	Term Loan (Loan Against Property)
Overall Loan Limit	Rs. 450.00 lacs
Date of Sanction	17-06-2024
Interest	11.25% (ROI is equal to LTPLR plus 2.70% i.e. 11.25 % p.a. floating interest rate)

Tenor	84 Months
Repayment Collateral Security:	Repayable in 84 Equated Monthly Installments Collateral :
	First and exclusive charge by way of Mortgage on property situated at Behind
	Ralson Shine Carbon, Village Jitwal Khurd, Hadbast #37, Tehsil
	Ahmedgarh, District Malerkotla -148019 ,together with all structures and appurtenances thereon, present and future standing in the name of
	Borrower/Guarantor having clear and marketable title.
Personal Guarantee	Irrevocable and unconditional Personal guarantee of AMIT JAIN , RUCHI
	JAIN
17. HDFC Bank Limited
Facility	Car Loan
Overall Loan Limit	Rs. 68.00 lacs
Date of Sanction	27-04-2023 (As per Loan Agreement)
Interest	12.00%
Tenor	60 Months
Repayment	Repayable in 60 Equated Monthly Installments
Primary Security	Hypothecation of Vehicle
18. ICICI Bank Limted
Facility	Car Loan
Overall Loan Limit	Rs. 9.75 lacs
Date of Sanction	02-11-2022
Interest	8.30%
Tenor	39 Months
Repayment	Repayable in 39 Equated Monthly Installments
Primary Security	Hypothecation of Vehicle
19. Union Bank of India
Facility	Working capital limit
Overall Loan Limit	Rs.600 lacs
Date of Sanction	29-09-2025
Interest	8.30%
Tenor	12 Months
Repayment	12 months
Primary Security	Hypothecation of stock and book debts upto 90 days
20. Union Bank of India
Facility	Solvent Extraction plant
Overall Loan Limit	Rs.400 lacs
Date of Sanction	29-09-2025
Interest	EBLR 8.85%
Tenor	90 Months
Repayment	Repayable in 90 Equated Monthly Installments
Primary Security	Hypothecation of machinery and other movable fixed assets purchased out
	of term loan
21. Union Bank of India
Facility	Term loan
Overall Loan Limit	Rs.397 lacs
Date of Sanction	29-09-2025
Interest	EBLR 8.85%

Tenor	70 Months
Repayment	Repayable in 70 Equated Monthly Installments
Primary Security	EM of industrial property(khasra no 74/129,khasra no.
	470/120//219,471/120- 3-0,472/121/-3-11,473/121/3-10,474/125/4-
	11,475/125/4-10 village jitwal khurd The ahmedgarh distt malerkotla vide
	sale deed no. 2024-25/130/1/774 dated 25.07.2024 in the name of twinkle
	papers limited
22. Union Bank of India
Facility	Term loan
Overall Loan Limit	Rs.81 lacs
Date of Sanction	29-09-2025
Interest	EBLR 8.85%
Tenor	70 Months
Repayment	Repayable in 70 Equated Monthly Installments
Primary Security	Hypothecation of machinery and other movable fixed assets purchased out
	of term loan
23. Axis Bank
Facility	Term Loan
Overall Loan Limit	Rs 20 lacs
Date of Sanction	29-10-2025
Interest	8.60%
Tenor	49 months
Repayment	Repayable in 49 Equated Monthly Installments
Primary Security	Hypothecation of machinery and other movable fixed assets purchased out
	of term loan

Annexure-A

Charge on the following Immovable Properties for all the Credit Facilities

(1) Exclusive charge by way of EM on industrial property measuring 9135 sq. yds situated at land comprised in 58, khata no 270/4705 khasra no 21//11/2,19/2,20/, i.e. 15 kanal 2 marla Ludhiana-Malerkotla road, Tehsil-Malerkotla, Distt. Sangrur along with 31780 sq. ft. construction owned by M/s Ganesh Solvex oil Mills through its proprietor Mrs. Raksha Jain (In the name of Mr Amit Jain. vide Transfer Deed dated 2021-22/131/1/2148 dtd 18-10-2021) (2) Exclusive charge by way of EM on industrial property admeasuring 5565.69 sq. yrds situated at land comprised in 58 khata no 177/2915 khasra no 20//16/4, 8, 17/4, 16, 20//17 i.e. 9 kanal 4 marla Ludhiana-Maferkotla road, Tehsil-Malerkotla, Dist sangrur along with 41700 sqft construction owned by the company and Mrs. Raksha Rani Jain. (In the name of M/s Twinkle Papers Limited (Erstwhile Twinkle Papers Private Limited vide RTD No 1181 dt, 28.02.99 and RTD No. 3372 dt. 16.01.1966 Smt Raksha Rani Jain vide RTD no. 1180 dt. 28.07.1999) (3) Extension of charge by way of EM on residential property measuring 500 sq. yds situated at plot no 279, Wayka village Fatehpur awana hadbast no 152, Abadi sukhmani Enclave, tehsil and district Ludhiana along with construction owned by Mr Amit Jain (Property is mortgaged as primary security in the accounts against the term loans availed under PNB Sampatti Scheme)(In the name of Mr. Amit Jain vide Transfer Deed No. 2018-19/101/1/3603 dt, 25.10.2018)

Note: Charge of Residential IP at Sr. No. 3 above is to be extended on all facilities, as this IP is held as primary security in Term Loans under PNB Sampatti Scheme (a) Entire working capital facilities will be secured by way of 2 nd charge over entire fixed assets of the Company, both present and future. (b) Entire term loans will be secured by way of 2 nd charge over entire current assets of the Company, both present and future. Mr. Amit Jain has executed registered lease deed in favour of M/s Twinkle Papers Pvt. Ltd. Lease deed executed on 27.03.2023 and same has been mortgaged with the bank

Unsecured Loans (From Banks & NBFC s)

(In Lakhs)

Sr No Name of Lender	Purpose	Sanctioned Amount	Outstanding As on
		(Rs.)	30 September
			2025
1 Aditya Birla Finance Ltd	Unsecured Business Loan	50.00	0.20
2 Godrej Finance Limited	Unsecured Business Loan	40.00	27.62
3 IDFC FIRST BANK LIMTED	Unsecured Business Loan	51.00	24.14
145166348
4 Kisetsu Saisons Finance	Unsecured Business Loan	35.50	24.47
(India)Private Limited
5 Kotak Mahindra Bank Limited	Unsecured Business Loan	35.00	20.23
6 L&T Finance Limited	Unsecured Business Loan	35.15	26.23
7 Poonawalla Fincorp Limited	Unsecured Business Loan	40.27	27.88
8 Tata Capital limited	Unsecured Business Loan	21.00	10.03
9 Ugro Capital Limited	Unsecured Business Loan	35.20	18.99
10 Yes Bank Ltd	Unsecured Business Loan	50.00	35.73
11 Moneywise Financial Services	Unsecured Business Loan	25.09	18.76
Total			234.28

1. Aditya Birla Finance Ltd
Facility	Unsecured Business Loan
Overall Loan Limit	Rs. 50.00 lacs
Date of Sanction	27-03-2023
Interest	18%
Tenor	36 Months
Repayment	Repayable in 36 Equated Monthly Installments
Primary Security	Security Against Cheques
2. Godrej Finance Limited
Facility	Unsecured Business Loan
Overall Loan Limit	Rs. 40.00 lacs
Date of Sanction	18-11-2024
Interest	15.50%
Tenor	36 Months
Repayment	Repayable in 36 Equated Monthly Installments
Primary Security	Security Against Cheques
3. IDFC First Bank Limited
Facility	Unsecured Business Loan
Overall Loan Limit	Rs. 51.00 lacs
Date of Sanction	20-02-2024
Interest	15.50%
Tenor	36 Months (36 Installments)
Repayment	Repayable in 36 Equated Monthly Installments
Primary Security	Security Against Cheques
4. Kisetsu Saisons Finance (India)Private Limited
Facility	Unsecured Business Loan
Overall Loan Limit	Rs. 35.50 lacs
Date of Sanction	30-10-2024
Interest	15.50%
Tenor	36 Months
Repayment	Repayable in 36 Equated Monthly Installments
Primary Security	Security Against Cheques
5. Kotak Mahindra Bank Limited
Facility	Unsecured Business Loan
Overall Loan Limit	Rs. 35.00 lacs
Date of Sanction	21-10-2024
Interest	15.50%
Tenor	30 Months (30 Installments)
Repayment	Repayable in 30 Equated Monthly Installments
Primary Security	Security Against Cheques
6. L&T Finance Limited
Facility	Unsecured Business Loan
Overall Loan Limit	Rs. 35.15 lacs
Date of Sanction	23-12-2024
Interest	17%
Tenor	36 Months
Repayment	Repayable in 36 Equated Monthly Installments
Primary Security	Security Against Cheques
7. Poonawalla Fincorp Limited
Facility	Unsecured Business Loan
Overall Loan Limit	Rs. 40.27 lacs
Date of Sanction	29-10-2024
Interest	15.50%
Tenor	36 Months
Repayment	Repayable in 36 Equated Monthly Installments
Primary Security	Security Against Cheques
8. Tata Capital limited
Facility	Unsecured Business Loan
Overall Loan Limit	Rs. 21.00 lacs
Date of Sanction	28-02-2024
Interest	16.50%
Tenor	36 Months (36 Installments)
Repayment	Repayable in 36 Equated Monthly Installments
Primary Security	Security Against Cheques)
9. Ugro Capital Limited
Facility	Unsecured Business Loan
Overall Loan Limit	Rs. 35.20 lacs
Date of Sanction	06-11-2024
Interest	16%
Tenor	25 Months

Repayment	Repayable in 25 Equated Monthly Installments
Primary Security	Security Against Cheques
10. Yes Bank Ltd
Facility	Unsecured Business Loan
Overall Loan Limit	Rs. 50.00 lacs
Date of Sanction	22-11-2024
Interest	15%
Tenor	36 Months
Repayment	Repayable in 36 Equated Monthly Installments
Primary Security	Security Against Cheques
11. Moneywise Financial Services
Facility	Unsecured Business Loan
Overall Loan Limit	Rs. 50.00 lacs
Date of Sanction	26-11-2024
Interest	17.50%
Tenor	36 Months
Repayment	Repayable in 36 Equated Monthly Installments
Primary Security	Security Against Cheques

Unsecured Loans (From Relatives)

(In Lakhs)

Sr No	Name of Lender		Outstanding As on
		Purpose	30 September 2025
1	Amit Jain (Managing Director)	Unsecured Business Loan	543.46
2	Ruchi Jain (Director)	Unsecured Business Loan	70.16
3	Ayush jain (Director)	Unsecured Business Loan	9.50
4	Ansh Jain (Director)	Unsecured Business Loan	8.43
	Total		631.55

For K. K Kapoor & Associates , Chartered Accountants, Firm Registration No: 001013N

Sd/-

CA Vinay Kohli Partner

Membership No: 094249

UDIN: 26094249QPZEWO6048 Date: May 22, 2026 Place: Ludhiana