Unitec Fibres Ltd Management Discussions

The following discussion and analysis of our financial condition and results of operations for the period ended on December 31, 2025, and for the financial year ended March 31, 2025, March 31, 2024 and March 31, 2023 is based on, and should be read in conjunction with, our Restated Financial Information, including the schedules, notes and significant accounting policies thereto, included in the chapter titled Restated Financial Information beginning on page 226 of this Draft Red Herring Prospectus. Our Restated Financial Information have been derived from our audited financial statements and restated in accordance with the SEBI ICDR Regulations and the ICAI Guidance Note. Our financial statements are prepared in accordance with AS.

You should read the following discussion of our financial condition and results of operations together with our restated financial information included in this Draft Red Herring Prospectus. You should also read the section titled Risk Factors beginning on page 26 of this Draft Red Herring Prospectus, which discusses a number of factors, risks and contingencies that could affect our financial condition and results of operations. Our Financial year ends on March 31 of each year, so all references to a particular financial year are to the twelve-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to we, us or our refers to our Company. Unless otherwise indicated, financial information included herein are based on our Restated Financial Information for the period ended on December 31, 2025, and for the financial year ended March 31, 2025, March 31, 2024 and March 31, 2023, included on page 226 of this Draft Red Heiring Prospectus.

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

BUSINESS OVERVIEW

Our Company is engaged in the manufacturing of Recycled Polyester Staple Fibre (RPSF) , a product created from recycled polyester raw materials. The production process begins with the procurement of raw materials like PET Flakes, PET Chips and other polyester waste materials. These materials are then converted into raw inputs, spun into fibre and processed to meet the requirements of our customers related to fibre properties like colour and density. Our products find applications in industries like the automobiles (carpet, roof liners, trunks), home furnishing (sofa, curtains, carpets) and textile sectors (spinning mills). Our manufacturing process focuses on the regeneration of polyester fibre through the utilization of PET flakes, PET chips and other PET waste derived from discarded plastic bottles and post-consumer waste streams. By converting such recyclable materials into Recycled Polyester Staple Fibre (RPSF), we contribute to resource conservation, waste reduction and the production of environmentally sustainable products.

Our Company was originally incorporated on February 11, 2005 under the name Unitec Fibres Private Limited under the provisions of the Companies Act, 1956 with the Assistant Registrar of Companies, Mumbai, Maharashtra. Subsequently, the status of the Company was changed to public limited Company and the name of our Company was changed to Unitec Fibres Limited vide Special Resolution passed by the Shareholders at the Extra-Ordinary General Meeting of our Company held on February 14, 2024. The fresh certificate of incorporation consequent to conversion was issued on June 13, 2024, by Registrar of Companies, Central Processing Centre. The Corporate Identification Number of our Company is U17120MH2005PLC151224.

As on the date of this Draft Red Herring Prospectus, we have two operational manufacturing units, located at M.I.D.C., Tarapur Industrial Area, Tarapur, Palghar, Thane 401506.

Unit Number	Address
Unit 1	E-57, M.I.D.C., Tarapur Industrial Area, Tarapur, Palghar, Thane- 401506, India.
	E-56, M.I.D.C.,Tarapur Industrial Area, Tarapur, Palghar, Thane- 401506, India.
Unit 2	Plot No. N-29, M.I.D.C., Tarapur Industrial Area, Tarapur, Palghar, Thane- 401506, India.

These facilities have a combined installed capacity of up to 27,984 metric tonnes per annum (MTPA) for the production of Recycled Polyester Staple Fibre (RPSF). In addition to our existing operations, we have recently acquired land admeasuring approximately 47,494 square meters in Valsad, Gujarat, where we are in process of setting up an additional RPSF production line which will be designated as Unit 3.

Our Company is managed by our promoter directors namely Mr. Virander Behl (Managing Director) who have been involved in the business since Companys incorporation bringing over 21 years of experience in overseeing and managing the Companys operations particularly in sales operations and identifying areas for improvement and opportunities for the Company. Mr. Vijay Omjagdish Behl (Chairman & Whole Time Director) with over 10 years of managing and overseeing the production activities, cost management, raw materials procurement and overseeing the day-to-day operations of the Company. Their experience enables us to anticipate and address market trends, manage and grow our operations, maintain and leverage customer relationships. For further details on the complete profile of our promoter directors, please see the chapter titled Our Management on page 198 of this Draft Red Herring Prospectus.

Quality is a crucial factor in our products and we implement effective quality control mechanism at different stages of the manufacturing process to ensure that our finished product conforms to the customer requirements. Our accreditations include ISO 9001:2015 for Quality Management System and ISO 14001:2015 for Environmental Management System. We have received the Hohenstein Laboratories (Germany) authorisation to use the Oeko-Tex mark, validating ecological standards and have also received the scope certificate for global recycled standard (GRS) from the Taiwan IDFL Laboratory and Institute Limited. By actively participating in the recycling process of plastic waste, our Company contributes to the development of a sustainable economy, ensuring environmental benefits and responsible resource management.

The details of our revenue from operations from these major revenue-contributing products for the period ended on December 31, 2025, and for the financial year ended March 31, 2025, March 31, 2024 and March 31, 2023, respectively are as follows:

( in lakhs, unless otherwise specified)

Particulars	For the period ended on December 31, 2025		FY 2024-25		FY 2023-24		FY 2022-23
	Revenue from Operations	%	Revenue from Operations	%	Revenue from Operations	%	Revenue from Operations	%
RPSF	16,655.62	98.35	22,067.14	97.46	19,726.97	96.63	20,234.34	97.68
Others*	278.91	1.65	574.48	2.54	687.00	3.37	481.12	2.32
Total	16,934.54	100.00	22,641.61	100.00	20,413.97	100.00	20,715.47	100.00

Others Includes Revenue from EPR Credit, RODTEP, Scrap sales etc.

Key Performance Indicators of our Company:

As per Restated Financial Information

( in Lakhs, unless otherwise specified)

Particulars	For the period ended on December 31, 2025	FY 2024-25	FY 2023-24	FY 2022-23
Revenue from Operations (1)	16,934.54	22,641.61	20,413.97	20,715.47
EBITDA (2)	1,162.34	1,744.97	1,678.46	943.63
EBITDA Margin (%) (3)	6.86%	7.71%	8.22%	4.56%
PAT	567.67	821.84	741.95	272.70
PAT Margin (%) (4)	3.35%	3.63%	3.63%	1.32%
Return on equity (%) (5)	9.42%	15.42%	16.32%	6.75%
Return on capital employed (%) (6)	8.14%	15.04%	20.20%	9.45%
Debt-Equity Ratio (times) (7)	0.83	0.64	0.32	0.74
Net fixed asset turnover ratio (times) (8)	3.83	6.50	7.93	6.84
Current Ratio (times) (9)	1.22	1.56	1.58	1.48

As certified by Peer Auditor of our Company, by way of their certificate dated May 29, 2026

(1) Revenue from operation means revenue from sale of our products

(2) EBITDA is calculated as Profit before tax + Depreciation + Finance Costs Other Income (3) EBITDA Margin is calculated as EBITDA divided by Revenue from Operations (4) PAT Margin is calculated as PAT for the period/year divided by revenue from operations

(5) Return on Equity is calculated by comparing the proportion of net income against the amount of average shareholder equity (6) Return on Capital Employed is calculated as follows: Profit before tax + Finance Costs (EBIT) divided by (Tangible Net Worth + Total Debt + Deferred Tax Liabilities) (7) Debt to Equity ratio is calculated as Total Debt divided by equity (8) Net Fixed asset turnover ratio is calculated by dividing the Revenue from Operations by Average Fixed Assets of the Company (9) Current Ratio is calculated by dividing Current Assets to Current Liabilities

SIGNIFICANT DEVELOPMENTS AFTER DECEMBER 31, 2025

Except as discussed below and elsewhere in this Draft Red Herring Prospectus, in the opinion of the Board of Directors of our Company, since December 31, 2025 as disclosed in this Draft Red Herring Prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months.

Our Company has approved the Audited Financial Statements for the period ended on December 31, 2025, pursuant to a resolution passed by the Board of Directors at their meeting held on May 07, 2026

The Board of our Company has approved to raise funds through Initial Public Offering in the board meeting held on May 07, 2026.

The members of our Company approved proposal of Board of Directors to raise funds through initial public offering in the Extra Ordinary General Meeting held on May 12, 2026.

Our Company has approved the Restated Financial Information for the period ended on December 31, 2025, and the financial years ended on March 31, 2025, March 31, 2024 and March 31, 2023, respectively, by the Board of Directors pursuant to a resolution passed at their meeting held on May 29, 2026.

Our Company has approved the Draft Red Herring Prospectus vide resolution in their Board Meeting dated June 29, 2026.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of Statement of Significant Accounting Policies, please refer to the chapter titled Restated Financial Information beginning on page 226 of this Draft Red Heiring Prospectus.

KEY COMPONENTS OF THE COMPANYS BALANCE SHEET

The following table sets forth selected financial data derived from our restated statement of assets & liabilities as at December 31,2025 and March 31, 2025, 2024, and 2023:

( in Lakhs, unless otherwise specified)

	Financial Year / Period ended
Particulars	December 31, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Liabilities
Long-Term Borrowings	2,589.71	2,207.67	358.44	983.26
Short-Term Borrowings	2,646.72	1,456.16	1,213.68	2,112.68
Trade Payables	2,081.35	2,108.52	1,795.84	2,368.34
Short-Term provisions	272.73	397.11	281.61	98.51
Other Current Liabilities	359.01	292.95	359.54	331.68
Assets
Property, Plant & Equipment and Intangible Assets (including CWIP)	6,104.66	5,330.07	2,487.24	2,658.83
Long Term Loans & Advance	1,636.34	237.26	700.00	8.41
Trade receivables	1,601.54	1,705.16	1,439.21	1,744.89
Inventories	3,937.01	4,083.93	3,806.24	3,644.18
Short-term loans and advances	854.83	581.62	353.45	542.26

A) Long-Term Borrowings:

The companys long-term borrowings have changed from 983.26 Lakhs in Financial year 2022-23 to 358.44 Lakhs in Financial year 2023-24 to 2,207.67 Lakhs in Financial year 2024-25. Long-term Borrowings as on December 31,

2025 stood at 2,589.71 Lakhs.

( in Lakhs, unless otherwise specified)

		Financial Year / Period ended
Particulars	December 31, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Secured :
From Bank & Financial Institutions	2,589.71	2,207.67	358.44	983.26
Total	2,589.71	2,207.67	358.44	983.26

The companys long-term borrowings decreased from 983.26 Lakhs in financial year 2022-23 to 358.44 Lakhs in Financial year 2023-24. However, in financial year 2024-25, long-term borrowings increased to 2,207.67 Lakhs, driven by fresh loans availed from Banks to support the companys operational funding requirements. For the period ended December 31, 2025, Borrowings further increased to 2,589.71 Lakhs.

B) Short-Term Borrowings:

( in Lakhs, unless otherwise specified)

	Financial Year / Period ended
Particulars	December 31, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Secured
From Bank & Financial Institutions	967.37	1,090.96	1,020.55	1,790.84
Unsecured
From Directors and Related Party	243.30	47.30	106.00	30.12
Inter-Corporate Borrowings	808.00	-	-	-
Current Maturities of Long Term Debt	628.05	317.90	87.13	291.71
Total	2,646.72	1,456.16	1,213.68	2,112.68

The companys short-term borrowings had decreased from 2,112.68 Lakhs in Financial year 2022-23 to 1,213.68 Lakhs in Financial year 2023-24. Further, it increased to 1,456.16 Lakhs in Financial year 2024-25 and to 2,646.72

Lakhs as on December 31, 2025.

C) Trade Payables:

Trade payables include dues payable to creditors. The companys payables decreased from 2,368.34 Lakhs in Financial year 2022-23 to 1,795.84 Lakhs in Financial year 2023-24 and then increased to 2,108.52 Lakhs in Financial year 2024-25, which is in line with the growing expenses of the company. The companys payables then decreased to 2,081.35 Lakhs as on December 31, 2025. The following are details of the Trade Payables of the company:

( in Lakhs, unless otherwise specified)

		Financial Year / Period ended
Particulars	December 31, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Total outstanding dues of micro enterprises and small enterprises	1,608.13	1,463.98	822.40	574.24
Total outstanding dues of creditors other than micro enterprises and small enterprises	473.22	644.54	973.44	1,794.09
Total	2,081.35	2,108.52	1,795.84	2,368.34

D) Short-term Provisions:

The companys short-term provisions have increased from 98.51 Lakhs in Financial year 2022-23 to 281.61 Lakhs in Financial year 2023-24 to 397.11 Lakhs in Financial year 2024-25, primarily due to an increase in the provision of income tax, which is in line with the growing operations of the company. The companys short term provisions then decreased to 272.73 Lakhs as on December 31, 2025. The table below shows details of the short-term provisions of the company:

( in Lakhs, unless otherwise specified)

		Financial Year / Period ended
Particulars	December 31, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Provision for Gratuity	14.33	12.82	12.08	9.97
Provision for Audit Fees	5.50	6.00	5.40	3.75
Income tax Provisions net of Advance tax and TDS	252.91	378.29	264.13	84.79
Total	272.73	397.11	281.61	98.51

E) Other Current Liabilities

The companys other current liabilities increased from 331.68 Lakhs in Financial year 2022-23 to 359.54 Lakhs in Financial year 2023-24, then decreased to 292.95 Lakhs in Financial year 2024-25. The companys other current liabilities then increased to 359.01 Lakhs as on December 31, 2025. The table below shows details of the other current liabilities of the company:

( in Lakhs, unless otherwise specified)

		Financial Year / Period ended
Particulars	December 31, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Statutory Dues Payables	39.50	33.10	90.62	42.53
Advances Received from Customers	49.21	10.80	42.59	34.29
Salary & Wages Payable	73.48	88.71	62.16	101.33
Electricity Expenses Payable	124.66	108.94	114.80	102.70
Interest Payable to MSE	9.30	8.72	33.53	24.07
Payable for Expenses	62.87	42.68	15.84	26.76
Total	359.01	292.95	359.54	331.68

F) Property, Plant & Equipment and Intangible Assets:

The following are the details of Property, Plant & Equipment and Intangible Assets :

( in Lakhs, unless otherwise specified)

		Financial Year / Period ended
Particulars	December 31, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Property, Plant and Equipment	4,360.61	4,478.42	2,485.15	2,658.73
Intangible Assets	0.95	1.31	2.09	0.10
Capital WIP	1,743.11	850.34	-	-
Total	6,104.66	5,330.07	2,487.24	2,658.83

In Financial Year 2023-24, the Companys Property, Plant & Equipment and Intangible Assets decreased from 2,658.83 Lakhs in Financial Year 2022-23 to 2,487.24 Lakhs in Financial Year 2023-24. This decrease was due to depreciation and amortization expense on such assets of 443.30 Lakhs which was offset by Purchase of Plant & Machinery of 213.21 lakhs, Vehicles of 56.50 Lakhs, Office Equipment of 2.44 Lakhs, Furniture & Fixtures of 3.09 Lakhs, Computer Software of 2.70 Lakhs and Computers of 2.54 Lakhs. In Financial Year 2024-25, the Companys Property, Plant & Equipment and Intangible Assets increased from 2,487.24 Lakhs in Financial Year 2023-24 to 5,330.07 Lakhs in Financial Year 2024-25. This increase was due to Purchase of Plant & Machinery of 94.00 lakhs, Land of 2,294.28 Lakhs, Office Equipment of 1.47 Lakhs, Furniture & Fixtures of 0.67 Lakhs, Computers of 2.04 Lakhs, and Capital work-in-progress of 850.34 Lakhs, which was offset by depreciation and amortization expense on such assets of 398.11 Lakhs.

For the period ended December 31, 2025, the Companys Property, Plant & Equipment and Intangible Assets increased from 5,330.07 Lakhs in Financial Year 2024-25 to 6,104.66 Lakhs as on December 31, 2025. This increase was due to Purchase of Plant & Machinery of 69.84 lakhs, Land of 45.68 Lakhs, Vehicle of 25.50 Lakhs, Office Equipment of 1.77 Lakhs, Furniture & Fixtures of 0.10 Lakhs, Computers of 1.90 Lakhs, and Capital Work-in-Progress of 892.77 Lakhs which was offset by depreciation and amortization expense on such assets of 260.10 Lakhs.

G) Long Term Loans and Advances:

( in Lakhs, unless otherwise specified)

		As at
Particulars	December 31, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Unsecured, Considered Good unless otherwise stated
Loans and Advances to Related Parties	-	-	-	-
Capital Advances	1,636.34	237.26	700.00	8.41
Total	1,636.34	237.26	700.00	8.41

The companys long-term loans and advances increased from 8.41 Lakhs in Financial year 2022-23 to 700.00 Lakhs in Financial year 2023-24, then decreased to 237.26 Lakhs in Financial year 2024-25. The companys long-term loans and advances further increased to 1,636.34 Lakhs as on December 31, 2025. These Capital advances was provided for purchase of Plant and Machinery and Building.

H) Trade receivables:

Trade receivables refer to outstanding dues from customers that remain unpaid. The following are details of the Trade receivables of the company:

( in Lakhs, unless otherwise specified)

		Financial Year / Period ended
Particulars	December 31, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Trade Receivables	1,601.54	1,705.16	1,439.21	1,744.89
Total	1,601.54	1,705.16	1,439.21	1,744.89

The companys trade receivables decreased from 1,744.89 Lakhs in Financial year 2022-23 to 1,439.21 Lakhs in Financial year 2023-24, then increased to 1,705.16 Lakhs in Financial year 2024-25, which is in line with the growing operations of the company. The companys trade receivables further decreased to 1,601.54 Lakhs as on December

31, 2025.

I) Inventories:

The companys inventory increased from 3,644.18 Lakhs in Financial year 2022-23 to 3,806.24 Lakhs in Financial year 2023-24 to 4,083.93 Lakhs in Financial year 2024-25 due to increase in Purchases of Stock-in-trade, raw materials and tools & consumables, which is in line with the growing operations of the company. Further, the companys inventory decreased to 3,937.01 Lakhs as on December 31, 2025. The following are the details of the

Inventories of the company :

( in Lakhs, unless otherwise specified)

Particulars		Financial Year / Period ended
	December 31, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Raw Material	3,354.92	3,219.70	3,048.21	2,995.32
Finished Goods	276.43	586.98	489.80	418.97
Tools and Consumables	305.66	277.25	268.23	229.89
Total	3,937.01	4,083.93	3,806.24	3,644.18

J) Short-term Loans & Advances:

The companys Short-term loans & advances decreased from 542.26 Lakhs in Financial year 2022-23 to 353.45

Lakhs in Financial year 2023-24, primarily due to decrease in balance with revenue authorities and then increased to 581.62 Lakhs in Financial year 2024-25 due to increase in EPR & Subsidy Claim receivable and in balance with revenue authority. Further, the companys short-term loans & advances increased to 854.83 Lakhs as on December 31, 2025, due to increase in balance with Revenue authorities. The following are the details of the Short-term loans & advances of the company:

( in Lakhs, unless otherwise specified)

		Financial Year / Period ended
Particulars	December 31, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Loans and Advances to Related Parties	-	-	-	92.24
Advance to Vendors	151.20	156.87	115.13	80.69
Balance with Revenue Authorities	499.27	163.48	43.35	324.38
Loans and Advances to Other than Related Parties	23.86	10.12	23.51	33.61
EPR & Subsidy claim Receivable	140.47	221.70	148.35	-
Prepaid Expenses	23.12	14.39	23.11	11.35
IPO Expense	16.90	15.06	-	-
Total	854.83	581.62	353.45	542.26

RESULTS OF OUR OPERATION

The following discussion on results of operations should be read in conjunction with the Restated Financial Information of our Company for the period ended on December 31, 2025, and for the financial year 2025, financial year 2024 and financial year 2023:

( in Lakhs, unless otherwise specified)

			For the Period Ended on / Year Ended
Particulars	December 31, 2025	% of Total Revenu e	March 31, 2025	% of Total Revenu e	March 31, 2024	% of Total Revenue	March 31, 2023	% of Total Revenue
Revenue:
Revenue from Operations	16,934.54	99.78%	22,641.61	99.69%	20,413.97	99.59%	20,715.4 7	98.94%
Other income	37.96	0.22%	71.52	0.31%	84.61	0.41%	221.46	1.06%
Total income Expenses:	16,972.50	100.00 %	22,713.13	100.00 %	20,498.58	100.00%	20,936.9 3	100.00 %
Cost of Material Consumed	11,081.48	65.29%	15,065.23	66.33%	13,316.53	64.96%	14,180.0 9	67.73%
Changes in Inventories	310.54	1.83%	(97.18)	(0.43) %	(70.82)	(0.35) %	(71.59)	(0.34) %
Employee benefits expense	656.74	3.87%	836.28	3.68%	930.20	4.54%	932.56	4.45%
Finance costs	123.64	0.73%	250.70	1.10%	264.95	1.29%	303.57	1.45%
Depreciation and amortization expense	260.10	1.53%	398.11	1.75%	443.30	2.16%	472.03	2.25%

			For the Period Ended on / Year Ended
Particulars	December 31, 2025	% of Total Revenu e	March 31, 2025	% of Total Revenu e	March 31, 2024	% of Total Revenue	March 31, 2023	% of Total Revenue
Other expenses	3,723.43	21.94%	5,092.32	22.42%	4,559.61	22.24%	4,730.77	22.60%
Total expenses	16,155.93	95.19%	21,545.46	94.86%	19,443.76	94.85%	20,547.4 4	98.14%
Profit before tax	816.56	4.81%	1,167.67	5.14%	1,054.82	5.15%	389.49	1.86%
Tax expense
(i) Current tax	261.17	1.54%	365.10	1.61%	330.95	1.61%	106.49	0.51%
(iii) Deferred tax	(12.27)	(0.07) %	(19.27)	(0.08) %	(18.09)	(0.09) %	10.29	0.05%
Net Tax Expenses	248.90	1.47%	345.83	1.52%	312.87	1.53%	116.79	0.56%
Profit/loss for the period	567.67	3.34%	821.84	3.62%	741.95	3.62%	272.70	1.30%

KEY COMPONENTS OF THE COMPANYS PROFIT AND LOSS STATEMENT

Revenue from operations: Revenue from operations mainly consists of Income from Sale of Recycled Polyester Staple Fiber, and Other operating revenue such as SS Polyester Fiber, Wiry, Lumps, Popcorn, EPR & Subsidy Claim, RoDTEP & Drawback Refund, Scrap Sales, etc.

Other Income: Other Income includes Interest income, Foreign Exchange Gain, Profit on Sale of Property, Plant and Equipment.

Expenses: The Companys expenses consist of Cost of material consumed, Changes in Inventories of Finished

Goods, Employee Benefit Expenses, Finance Cost, Depreciation and Amortization Expense, Other Expenses, and Tax expenses.

Cost of material consumed: Cost of material consumed consist of purchases of raw material and difference in opening stock of raw material and closing stock of raw material.

Employee Benefits Expense: Employee benefit expenses include Salary & Wages, Remuneration to Directors and Gratuity Expenses.

Finance Cost: Finance Cost includes Interest Expenses and Other Borrowing Costs.

Depreciation and Amortization Expense: We recognize Depreciation and Amortization expense on a WDV basis as per the rates outlined in the Companies Act, 2013.

Other Expenses: Other expenses include direct expenses such as Electricity Charges, Freight, Custom & Clearing Charges, Labour Charges, Stores & Spares, Fuel / Gas / Coal Expenses, and indirect expenses such as Repairs and Maintenance, Commission expenses, Discounts, Service & Consultancy Charges, Rates & Taxes, etc.

FOR THE PERIOD ENDED ON DECEMBER 31, 2025

For the period ended on December 31, 2025, the Company recorded steady operational performance, reflecting managements ongoing focus on core business activities and cost management initiatives. The following discussion and analysis describe the principal factors that impacted the Companys financial results for the period:

Total Income

Our total income for the period ended December 31, 2025, was 16,972.50 Lakhs, primarily due to the factors discussed below:

Revenue from Operations

For the period ended December 31, 2025, our Revenue from Operations amounted to 16,934.54 lakhs, representing

99.78% of our Total Income. This revenue primarily comprised sales of Recycle Polyester Staple Fiber, which contributed 16,655.62 lakhs. The balance consisted of other operating income, including sales of wiry waste, lumps, popcorn, and similar products amounting to 31.84 lakhs, EPR and subsidy claims of 81.57 lakhs, RODTEP and duty drawback refunds of 55.62 lakhs, and scrap sales of 109.89 lakhs.

Other income

Our other income was 37.96 Lakhs for the period ended December 31, 2025. It primarily includes Foreign Exchange Gain of 27.63 Lakhs, Interest Income of 4.83 Lakhs and Profit on Sale of Property, Plant and Equipment of 5.50

Lakhs.

Cost of Material Consumed

Cost of material consumed was 11,081.48 Lakhs for the period ended December 31, 2025. It primarily includes

Purchase of PET Flakes of 5,257.11 Lakhs, PET Chips of 2,248.71 Lakhs, Popcorn of 1,616.81 Lakhs and Wiry waste of 1,357.89 Lakhs.

Changes in Inventories of Finished Goods and Stock-in-Trade

Changes in inventories of finished goods and stock in trade is due to change in opening stock of finished goods and stock in trade with the closing stock of finished goods and stock in trade.

Employee benefits expense

Our employee benefits expenses were 656.74 Lakhs for the period ended December 31, 2025. This includes director remuneration of 63.00 Lakhs, salaries and wages of 543.41 Lakhs, contribution to provident and other funds of 26.84 Lakhs, gratuity expenses of 6.24 Lakhs, staff welfare expenses of 14.52 Lakhs, and Insurance / Medical Expenses of 2.73 Lakhs.

Finance costs

Our finance costs were 123.64 Lakhs for the period ended December 31, 2025. This includes interest expenses on borrowings from Banks of 99.15 Lakhs, other borrowing cost of 23.91 Lakhs, and interest on delayed payments of MSE of 0.58 Lakhs.

Depreciation and Amortisation expense

Our depreciation and amortisation expenses were 260.10 Lakhs for the period ended December 31, 2025. This includes depreciation on Property, Plant and Equipment (PPE) of 259.74 Lakhs and amortization of intangible assets of 0.36 Lakhs.

Other Expenses

Our other expenses were 3,723.43 Lakhs for the period ended December 31, 2025. The details of other expenses incurred during the period are as follows:

	( in Lakhs, unless otherwise specified)
Particulars	December 31, 2025
Labour charges	335.14
Stores & Spare	532.83
Testing Charges	9.55
Water Charges	27.29
Freight, Custom & Other clearing Charges	575.37
Security Services	45.79
Insurance Charges	14.40
Fuel / Gas / Coal Expenses	365.87
Electricity Expenses	1,148.28
Rent	58.40
Auditors Fee	4.50
Advertisement Exp	0.30
Discount	137.14
Repairs & Maintenance Expense	187.15
Commission Expenses	114.09
Conveyance Charges	5.13
Service & Consultancy Charges	47.81
Printing & Stationery Expenses	6.33
Rates & Taxes	78.26
Computer & Internet Expenses	5.07
Motor Car Exp	5.35
Travelling Expenses	5.07
Donation	0.37
Sales Promotion Expense	3.90
Directors Sitting Fees	3.00
Other Expenses*	7.05
Total	3,723.43

*Does not include any individual item of expenditure with a value of more than 1% of the revenue from operations.

Tax Expenses

Our total tax expenses were 248.90 Lakhs for the period ended on December 31, 2025. It includes current tax expense of 261.17 Lakhs which was set off against deferred tax expense of ( 12.27) Lakhs.

Profit after tax

For the period ended December 31, 2025, our Companys profit after tax amounted to 567.67 Lakhs, representing a profit margin of 3.35%.

FINANCIAL YEAR 2025 COMPARED WITH FINANCIAL YEAR 2024

( in Lakhs, unless otherwise specified)

	For the Year Ended
Particulars	March 31, 2025	March 31, 2024	% Change
Revenue From Operations	22,641.61	20,413.97	10.91%
Other Income	71.52	84.61	(15.47) %

	For the Year Ended
Particulars	March 31, 2025	March 31, 2024	% Change
Total Income	22,713.13	20,498.58	10.80%
Expenditure
Cost of Material Consumed	15,065.23	13,316.53	13.13%
Changes in Inventories of Finished Goods	(97.18)	(70.82)	37.22%
Employee benefits expense	836.28	930.20	(10.10) %
Finance Costs	250.70	264.95	(5.38) %
Depreciation and Amortization Expense	398.11	443.30	(10.19) %
Other Expenses	5,092.32	4,559.61	11.68%
Total Expenditure	21,545.46	19,443.76	10.81%
Profit/(Loss) Before Tax	1,167.67	1,054.82	10.70%
Tax Expense:
Tax Expense for Current Year	365.10	330.95	10.32%
Deferred Tax	(19.27)	(18.09)	6.55%
Net Tax Expenses	345.83	312.87	10.54%
Profit After Tax	821.84	741.95	10.77%

Revenue from Operation

Revenue from operations has increased by 10.91% from 20,413.97 Lakhs in Financial year 2023-24 to 22,641.61 Lakhs in Financial year 2024-25. The table below sets forth the details of the revenue bifurcation of the company: -

( in Lakhs, unless otherwise specified)

	For the year ended March 31, 2025		For the year ended March 31, 2024
Particulars	Amount	% of Revenue from operations	Amount	% of Revenue from operations	% change
Revenue from Manufacturing Activity
Sale of RPSF	22,067.14	97.46%	19,726.97	96.63	11.86%
Other Operating Revenue
RoDTEP & Drawback refund	121.46	0.54%	39.77	0.19%	205.40%
EPR & Subsidy Claim	224.72	0.99%	299.92	1.47%	(29.07%)
Sale of Lumps, PopCorn, Wiry, Chips etc.	70.18	0.31%	191.23	0.94%	(63.30%)
Scrap sale	158.12	0.70%	156.08	0.76%	1.30%
Total	22,641.61	100.00%	20,413.97	100.00%	10.91%

The Companys revenue from operations increased by 10.91%, from 20,413.97 lakhs in FY 2023-24 to 22,641.61 lakhs in FY 2024-25. This growth was supported by an increase in export sales and expansion into new international markets, including Bangladesh, France, the United Kingdom, and Germany.

Total export revenue increased from 1,255.10 lakhs in FY 2023-24 to 3,583.77 lakhs in FY 2024-25. As a percentage of total revenue from operations, exports contributed 15.83% in FY 2024-25 compared to 6.15% in the previous year.

The significant increase in exports during FY 2024-25 reflects the Companys efforts to expand its presence in international markets and diversify its customer base across multiple countries. Bangladesh emerged as the largest export market during the year, while exports to the United Kingdom, France, and Germany also recorded notable growth. This broader international reach contributed to the overall increase in revenue from operations.

The details of export sales are given below:-

( in Lakhs, unless otherwise specified)

	FY 2024-25		FY 2023-24
Particulars
	Revenue from Operations	%	Revenue from Operations	%
Export
Bangladesh	1,613.06	7.12%	39.20	0.19%
France	691.13	3.05%	573.33	2.81%
United Kingdom	714.02	3.15%	197.53	0.97%
Germany	291.54	1.29%	185.97	0.91%
Other Countries##	274.02	1.21%	259.07	1.27%
Total	3,583.77	15.83%	1,255.10	6.15%

## Other Countries includes China, Taiwan, Hungary, Catawba, Italy, Nepal, Poland, Portugal, Qatar, Sri Lanka, Turkey, Vietnam

Other Income

Other income had decreased by 13.09 Lakhs from 84.61 Lakhs in Financial year 2023-24 to 71.52 Lakhs in Financial year 2024-25. It was primarily due to a decrease in Interest income during the year from 24.29 Lakhs in Financial Year 2023-24 to 9.88 Lakhs in Financial Year 2024-25 and decrease in Balance Written Back from 48.83

Lakhs in Financial Year 2023-24 to NIL in Financial Year 2024-25. This reduction was set off against Interest reversal on MSE Suppliers which increased from NIL in Financial Year 2023-24 to 24.82 Lakhs in Financial Year 2024-25,

Foreign Exchange Gain which increased from 11.50 Lakhs in Financial Year 2023-24 to 31.08 Lakhs in Financial

Year 2024-25.

Cost of Material Consumed

Cost of material consumed is increased from 13,316.53 Lakhs in Financial year 2023-24 to 15,065.23 Lakhs in Financial year 2024-25 due to increase in purchase of Raw material from 13,369.43 Lakhs in Financial year 2023-24 to 15,236.71 Lakhs in Financial year 2024-25.

Changes in Inventories of Finished Goods and Stock-in-Trade

Changes in inventories of finished goods and stock in trade is due to change in opening stock of finished goods and stock in trade with the closing stock of finished goods and stock in trade.

Employee Benefit Expenses

Employee benefit expenses had decreased by 93.91 Lakhs from 930.20 Lakhs in Financial year 2023-24 to 836.28 Lakhs in Financial year 2024-25. This was primarily due to a decrease in Salary & Wages from 767.27 Lakhs in Financial year 2023-24 to 692.03 Lakhs in Financial year 2024-25 and a decrease in Gratuity expense from 15.17

Lakhs in Financial year 2023-24 to NIL in Financial year 2024-25.

( in Lakhs, unless otherwise specified)

	For the Year Ended
Particulars	March 31, 2025	March 31, 2024	% Change
Salary, Wages and Bonus	692.03	767.27	(9.81) %
Directors Remuneration	84.00	84.00	0.00%
Contribution to Provident Fund and Other Fund	39.72	46.22	(14.06) %
Gratuity Expenses	-	15.17	(100.00) %
Staff Welfare Expenses	18.58	14.38	29.21%
Medical Expense / Insurance	1.94	3.15	(38.24) %
Total	836.28	930.20	(10.10) %

Finance Cost

Finance Cost had decreased by 14.25 Lakhs from 264.95 Lakhs in Financial year 2023-24 to 250.70 Lakhs in Financial year 2024-25. This was primarily due to a decrease in Interest paid on borrowings from Banks from 198.06

Lakhs in Financial year 2023-24 to 156.11 Lakhs in Financial year 2024-25, set off against an increase in Other borrowing costs from 24.78 Lakhs in Financial year 2023-24 to 58.87 Lakhs in Financial year 2024-25.

( in Lakhs, unless otherwise specified)

	For the Year Ended
Particulars	March 31, 2025	March 31, 2024	% Change
Interest on Borrowings from Bank	156.11	198.06	-21.18%
Interest On Delayed Payment To MSME	-	9.46	-100.00%
Other Borrowing Costs	58.87	24.78	137.54%
Bank Charges	35.72	32.64	9.43%
Total	250.70	264.95	-5.38%

Depreciation and Amortization Expenses

Depreciation and Amortization expense had decreased by 45.18 Lakhs from 443.30 Lakhs in Financial year 2023-24 to 398.11 Lakhs in Financial year 2024-25.

Other Expenses

Other expenses had increased by 532.70 Lakhs from 4,559.61 Lakhs in Financial year 2023-24 to 5,092.32 Lakhs in Financial year 2024-25. The increase was primarily due to an increase in Freight, Custom & Other clearing Charges by 333.56 Lakhs, Electricity expenses by 131.28 Lakhs, Discount expense by 94.07 Lakhs, Repairs & Maintenance expense by 60.78 lakhs, etc. This was offset by decrease in Rates & Taxes by 59.62 Lakhs, Fuel / Gas / Coal Expenses by 54.25 Lakhs, etc. in the financial year 2024-25.

( in Lakhs, unless otherwise specified)

	For the Year Ended
Particulars	March 31, 2025	March 31, 2024	% Change
Labour charges	428.32	435.15	(1.57) %
Stores & Spare	537.75	541.23	(0.64) %
Testing Charges	11.91	6.89	72.82%
Water Charges	39.32	38.09	3.23%
Freight, Custom & Other clearing Charges	903.51	569.95	58.52%
Security Services	74.22	70.19	5.74%
Insurance Charges	24.90	16.00	55.61%
Fuel / Gas / Coal Expenses	736.88	791.13	(6.86) %
Electricity Expenses	1,516.96	1,385.68	9.47%
Rent	103.43	144.16	(28.25) %
Auditors Fee	6.75	6.00	12.50%
Advertisement Expenses	0.08	3.60	(97.78)%

	For the Year Ended
Particulars	March 31, 2025	March 31, 2024	% Change
Discount	94.07	-	100.00%
Repairs & Maintenance Expense	282.24	221.46	27.45%
Commission Expenses	184.05	153.89	19.60%
Conveyance Charges	7.84	9.26	(15.33) %
Service & Consultancy Charges	65.45	56.14	16.60%
Corporate Social Responsibility	13.50	-	100.00%
Printing & Stationery Expenses	9.25	9.02	2.46%
Rates & Taxes	2.25	61.87	(96.36) %
Computer & Internet Expenses	4.98	6.87	(27.50) %
Motor Car Exp 31-	5.89	7.66	(23.02) %
Travelling Expenses	11.41	6.70	70.40%
Donation	0.83	0.68	23.11%
Sales Promotion Expense	3.71	-	100.00%
Directors Sitting Fees	3.50	-	100.00%
Other Expenses*	19.30	18.00	(7.23) %
Total	5,092.32	4,559.61	11.68%

* Does not include any individual item of expenditure with a value of more than 1% of the revenue from operations.

Tax Expenses

The Companys tax expenses increased by 32.96 Lakhs from 312.87 Lakhs in Financial year 2023-24 to 345.83 Lakhs in Financial year 2024-25. This was on account of an increase in Tax expenses of the current year by 34.15

Lakhs and decrease in deferred tax by 1.19 Lakhs in Financial year 2024-25.

Profit after Tax

In FY 2024-25, the Company reported a net profit of 821.84 lakhs, compared to 741.95 lakhs in FY 2023-24, registering a growth of 10.77%. This increase was primarily supported by higher business activity during the year, which resulted in an increase in Total Income from 20,498.58 lakhs in FY 2023-24 to 22,713.13 lakhs in FY 2024-25, reflecting a growth of 10.80%.

To support the increased level of operations, the Company incurred higher expenses during the year. Total Expenses increased from 19,443.76 lakhs in FY 2023-24 to 21,545.46 lakhs in FY 2024-25, mainly due to higher material consumption and other operating costs associated with the growth in sales and production activities.

Despite the increase in expenses, the Company maintained its Profit After Tax margin at 3.63%, the same as in FY 2023-24. This shows that the growth in profit was in line with the increase in revenue and overall business operations while maintaining a consistent level of profitability.

FINANCIAL YEAR 2023-24 COMPARED WITH FINANCIAL YEAR 2022-23

( in Lakhs, unless otherwise specified)

	For the Year Ended on
Particulars
	March 31, 2024	March 31, 2023	% Change
Revenue From Operations	20,413.97	20,715.47	(1.46) %
Other Income	84.61	221.46	(61.80) %
Total Income	20,498.58	20,936.93	(2.09) %
Expenditure
Cost of Material Consumed	13,316.53	14,180.09	(6.09) %
Changes in Inventories of Finished Goods	(70.82)	(71.59)	(1.07) %

Employee Benefit Expense	930.20	932.56	(0.25) %
Finance Costs	264.95	303.57	(12.72) %
Depreciation and Amortization Expense	443.30	472.03	(6.09) %
Other Expenses	4,559.61	4,730.77	(3.62) %
Total Expenditure	19,443.76	20,547.44	(5.37) %
Profit/(Loss) Before Tax	1,054.82	389.49	170.82%
Tax Expense:
Tax Expense for Current Year	330.95	106.49	210.77%
Deferred Tax	(18.09)	10.29	(275.74) %
Net Current Tax Expenses	312.87	116.79	167.89%
Profit After Tax	741.95	272.70	172.07%

Revenue from Operation

Revenue from operations had decreased by 1.46% from 20,715.47 Lakhs in financial year 2022-23 to 20,413.97

Lakhs in financial year 2023-24. The table below sets forth the details of the revenue bifurcation of the company: -

( in Lakhs, unless otherwise specified)

	For the year ended March 31, 2024		For the year ended March 31, 2023
Particulars	Amount	% of Revenue from operations	Amount	% of Revenue from operations	% change
Revenue from Manufacturing Activity
Sale of RPSF	19,726.97	96.63%	20,234.34	97.68%	(2.51) %
Other Operating Revenue
Sale of Lumps, Wiry, Popcorn, Chips, etc.	191.23	0.94%	210.18	1.01%	(9.01) %
RoDTEP & Drawback refund	39.77	0.19%	53.72	0.26%	(25.96) %
EPR & Subsidy Claim	299.92	1.47%	-	0.00%	100.00%
Scrap sale	156.08	0.76%	217.23	1.05%	(28.15)%
Total	20,413.97	100.00%	20,715.47	100.00%	(1.46) %

Our revenue from operations decreased by 1.46%, from 20,715.47 lakhs in FY 2022-23 to 20,413.97 lakhs in FY

2023-24. The decline was mainly due to decrease in sell price during the year. However, the impact of lower prices was partly offset by revenue earned from EPR credits in FY 2023-24. Since there was no revenue from EPR credits in FY 2022-23, the income generated from EPR credits during FY 2023-24 helped compensate for the reduction in revenue resulting from the decrease in product prices. As a result, the overall decline in revenue from operations remained limited despite the lower market prices

Other Income

Other income had decreased by 136.85 Lakhs from 221.46 Lakhs in Financial year 2022-23 to 84.61 Lakhs in Financial year 2023-24. This was mainly due to decrease in Foreign Exchange Gain by 23.13 Lakhs during the year, decrease in Balance Written Back by 24.08 Lakhs and decrease in Profit on Sale of Property, Plant and Equipment by 92.80 Lakhs.

Cost of Material Consumed

Cost of material consumed is decreased from 14,180.09 Lakhs in Financial year 2022-23 to 13,316.53 Lakhs in Financial year 2023-24 due to decrease in purchase of Raw material from 14,573.36 Lakhs in Financial year 2022-23 to 13,369.43 Lakhs in Financial year 2023-24.

Changes in Inventories of Finished Goods and stock in trade

Changes in inventories of finished goods and stock in trade is due to change in opening stock of finished goods and stock in trade with the closing stock of finished goods and stock in trade.

Employee Benefit Expenses

Employee benefit expenses had decreased by 2.37 Lakhs from 932.56 Lakhs in financial year 2022-23 to 930.20 Lakhs in financial year 2023-24. This was primarily due to a decrease in Salary & Wages from 794.00 Lakhs in

Financial year 2022-23 to 767.27 Lakhs in Financial year 2023-24 which is offset with an increase in Remuneration to directors from 58.00 Lakhs in financial year 2022-23 to 84.00 Lakhs in Financial year 2023-24.

( in Lakhs, unless otherwise specified)

	For the Year Ended
Particulars	March 31, 2024	March 31, 2023	% Change
Salary, Wages and Bonus	767.27	794.00	(3.37) %
Directors Remuneration	84.00	58.00	44.83%
Contribution to Provident Fund and Other Fund	46.22	49.63	(6.88) %
Gratuity Expenses	15.17	12.24	23.99%
Staff Welfare Expenses	14.38	14.75	(2.52) %
Medical Expense / Insurance	3.15	3.94	(20.06) %
Total	930.20	932.56	(0.25) %

Finance Cost

Finance Cost had decreased by 38.62 Lakhs from 303.57 Lakhs in Financial year 2022-23 to 264.95 Lakhs in financial year 2023-24. This was primarily due to a decrease in Interest paid on borrowings from banks from 252.28

Lakhs in financial year 2022-23 to 198.06 Lakhs in financial year 2023-24 and offset with increase in other borrowing cost from 8.15 Lakhs in financial year 2022-23 to 32.64 Lakhs in financial year 2023-24.

( in Lakhs unless otherwise specified)

	For the Year Ended
Particulars	March 31, 2024	March 31, 2023	% Change
Interest on Borrowings from Bank	198.06	252.28	(21.49) %
Interest On Delayed Payment To MSE	9.46	24.07	(60.69) %
Other Borrowing Costs	24.78	19.06	30.01%
Interest on Taxes	32.64	8.15	300.52%
Total	264.95	303.57	(12.72) %

Depreciation and Amortization Expenses

Depreciation had decreased by 28.74 Lakhs from 472.03 Lakhs in Financial year 2022-23 to 443.30 Lakhs in

Financial year 2023-24.

Other Expenses

Other expenses had decreased by 171.16 Lakhs from 4,730.77 Lakhs in Financial year 2022-23 to 4,559.61 Lakhs in Financial year 2023-24. This decrease was primarily due to a decrease in Fuel / Gas / Coal Expenses by 194.55 Lakhs, Freight, Custom & Other clearing Charges by 149.23 Lakhs and Stores & Spares by 51.80 Lakhs. This was offset by an increase in Electricity Expenses by 86.09 Lakhs and Rates & Taxes by 48.89 Lakhs, etc., in financial year 2023-24.

( in Lakhs unless otherwise specified)

	For the Year Ended
Particulars			% Change
	March 31, 2024	March 31, 2023
Labour charges	435.15	392.51	10.86%
Stores & Spare	541.23	593.04	-8.74%
Testing Charges	6.89	10.77	-35.99%
Water Charges	38.09	30.13	26.41%
Freight, Custom & Other clearing Charges	569.95	719.18	-20.75%
Security Services	70.19	59.04	18.88%
Insurance Charges	16.00	18.24	-12.28%
Fuel / Gas / Coal Expenses	791.13	985.69	-19.74%
Electricity Expenses	1,385.68	1,299.59	6.62%
Rent	144.16	121.57	18.58%
Advertisement Exp	3.60	1.35	166.13%
Auditors Fee	6.00	4.00	50.00%
Repairs & Maintenance Expense	221.46	206.02	7.49%
Commission Expenses	153.89	188.48	-18.35%
Conveyance Charges	9.26	10.20	-9.21%
Service & Consultancy Charges	56.14	30.69	82.89%
Corporate Social Responsibility	-	-	-
Printing & Stationery Expenses	9.02	9.19	-1.80%
Rates & Taxes	61.87	12.98	376.70%
Computer & Interenet Expenses	6.87	5.22	31.64%
Motor Car Exp	7.66	8.19	-6.51%
Travelling Expenses	6.70	7.34	-8.76%
Donation	0.68	0.87	-22.06%
Other Expenses*	18.00	16.48	9.19%
Total	4,559.61	4,730.77	-3.62%

Tax Expenses

The Companys tax expenses increased by 196.08 Lakhs from 116.79 Lakhs in financial year 2022-23 to 312.87 Lakhs in financial year 2023-24. This was on account of an increase in Tax expenses of the current year by 224.46

Lakhs.

Profit after Tax

In FY 2023-24, the Company reported a net profit attributable to owners of 741.95 lakhs, compared to 272.70 lakhs in FY 2022-23, representing an increase of 172.07%. The increase in profit was mainly due to additional income earned during the year from the sale of EPR credits and subsidy claims, which amounted to 299.92 lakhs in FY 2023-24, compared to nil in FY 2022-23. This additional income contributed significantly to the increase in Profit After Tax during the year.

CASH FLOWS

( in Lakhs, unless otherwise specified)

Particulars	For the Financial Year / Period ended

	December 31, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Net Cash from Operating Activities	711.96	1,174.90	2,141.75	317.19
Net Cash from Investing Activities	(2,384.60)	(2,784.94)	(779.29)	292.08
Net Cash from Financing Activities	1,449.55	1,841.00	(1,779.31)	(521.83)
Net Increase/ (Decrease) in Cash & Cash Equivalents	(223.10)	230.96	(416.85)	87.44
Opening Balance of Cash & Cash Equivalents	244.91	13.94	430.80	343.36
Closing Balance of Cash & Cash Equivalents	21.81	244.91	13.94	430.80

Cash Flows from Operating Activities

For the period ended December 31, 2025

Our net cash generated from operating activities for the period ended on December 31, 2025, was 711.96 Lakhs as compared to the Profit Before Tax at 816.56 Lakhs. Our operating profit before working capital changes was 1,332.68 Lakhs for the period ended on December 31, 2025 which was primarily adjusted against increase in trade receivables by 32.85 Lakhs, decrease in inventory by 146.91 Lakhs, increase in short term loans and advances by 273.22 Lakhs, decrease in trade payables by 27.17 Lakhs, increase in other current liabilities by 65.48 Lakhs, decrease in Short Term Provisions by 0.50 Lakhs, Increase in Other Bank Balances (FDR) by 112.83 Lakhs and Net Income taxes paid of 386.55 Lakhs.

For the financial year ended March 31, 2025

Our net cash generated in operating activities for the year ended March 31, 2025, was 1,174.90 Lakhs as compared to the Profit Before Tax at 1,167.67 Lakhs. Our operating profit before working capital changes was 1,873.18 Lakhs for the financial year ended March 31, 2025 which was primarily adjusted against increase in trade receivables by

363.07 Lakhs, increase in inventory by 277.69 Lakhs, increase in short term loans and advances by 228.17 Lakhs, increase in trade payables by 312.68 Lakhs, decrease in other current liabilities by 41.77 Lakhs, increase in Short Term Provisions by 0.60 Lakhs, Decrease in Other Bank Balances (FDR) by 150.10 Lakhs and Net Income taxes paid of 250.95 Lakhs.

For the financial year ended March 31, 2024

Our net cash generated from operating activities for the year ended March 31, 2024, was at 2,141.75 Lakhs as compared to the Profit Before Tax at 1,054.82 Lakhs. Our operating profit before working capital changes was 1,704.15 Lakhs for the year ended March 31, 2024 which was primarily adjusted against decrease in trade receivables by 307.19 Lakhs, increase in inventory by 162.06 Lakhs, decrease in short term loans and advances by 188.82 Lakhs, decrease in trade payables by 523.67 Lakhs, increase in other current liabilities by 18.39 Lakhs, increase in Short-Term provisions by 1.65 Lakhs, Decrease in Other Bank Balances (FDR) by 758.91 Lakhs and Net income taxes paid of 151.61 Lakhs.

For the financial year ended March 31, 2023

Our net cash generated from operating activities for the year ended March 31, 2023, was at 317.19 Lakhs as compared to the Profit Before Tax at 389.49 Lakhs. Our operating profit before working capital changes was 996.80

Lakhs for the financial year ended March 31, 2023 which was primarily adjusted against decrease in trade receivables by 489.50 Lakhs, increase in inventory by 578.45 Lakhs, increase in short term loans and advances by 104.75 Lakhs, increase in trade payables by 538.94 Lakhs, increase in other current liabilities by 31.72 Lakhs, Decrease in Short term provisions by 4.49 Lakhs, Increase in Other Bank Balances (FDR) by 910.21 Lakhs and Net income tax paid of 141.88 Lakhs.

Cash Flows from Investment Activities

For the period ended December 31, 2025

For the period ended December 31, 2025, the net cash used in Investing Activities was 2,384.60 Lakhs. This was mainly on account of Purchase of Property, Plant and Equipment of 1,037.56 Lakhs, proceeds from sale of Property, Plant and Equipment of 8.36 Lakhs, increase in Long Term Loans & Advances by 1,399.08 Lakhs, decrease in Other Non-Current Assets by 38.84 Lakhs and Interest income of 4.83 Lakhs.

For the financial year ended March 31, 2025

For the financial year ended March 31, 2025, the net cash used in Investing Activities was 2,784.94 Lakhs. This was mainly on account of Purchase of Property, Plant and Equipment of 3,242.80 Lakhs, proceeds from sale of Property, Plant and Equipment of 2.52 Lakhs, decrease in Long Term Loans & Advances by 462.74 Lakhs, increase in Other Non-Current Assets by 17.28 Lakhs and Interest income of 9.88 Lakhs, and Purchase of Long Term Investment of 0.01 Lakhs.

For the financial year ended March 31, 2024

For the financial year ended March 31, 2024, the net cash used in Investing Activities was 779.29 Lakhs. This was mainly on account of Purchase of Property, Plant and Equipment of 280.48 Lakhs, proceeds from sale of Property, Plant and Equipment of 8.26 Lakhs, increase in Long Term Loans & Advances by 691.59 Lakhs, decrease in Other Non-Current Assets by 160.24 Lakhs and Interest income of 24.29 Lakhs.

For the financial year ended March 31, 2023

For the financial year ended March 31, 2023, the net cash generated from Investing Activities was 292.08 Lakhs. This was mainly on account of Purchase of Property, Plant and Equipment of 344.03 Lakhs, proceeds from sale of Property, Plant and Equipment of 708.53 Lakhs, increase in Long Term Loans & Advances by 8.41 Lakhs, Increase in Other Non-Current Assets by 85.13 Lakhs and Interest income of 21.12 Lakhs.

Cash Flows from Financing Activities

For the period ended December 31, 2025

For the period ended December 31, 2025, the net cash generated from financing activities was 1,449.55 Lakhs. This was mainly on account of proceeds from long-term borrowings of 808.34 Lakhs, repayment of long-term borrowings of 116.14 Lakhs, proceeds from Short-Term Borrowings of 880.41 Lakhs and Finance Cost of 123.06 Lakhs.

For the financial year ended March 31, 2025

For the financial year ended March 31, 2025, the net cash generated from financing activities was 1,841.00 Lakhs.

This was mainly on account of proceeds from long-term borrowings of 2,200.00 Lakhs, repayment of long-term borrowings of 120.00 Lakhs, proceeds from Short-Term Borrowings of 11.71 Lakhs, and Finance Cost of 250.70

Lakhs.

For the financial year ended March 31, 2024

For the financial year ended March 31, 2024, the net cash used in financing activities was 1,779.31 Lakhs. This was mainly on account of repayment of Short-Term Borrowings of 694.42 Lakhs, proceeds from long-term borrowings of 274.00 Lakhs, repayment of Long-Term Borrowings of 1,103.40 Lakhs and Finance Cost of 255.49 Lakhs.

For the financial year ended March 31, 2023

For the financial year ended March 31, 2023, the net cash used in financing activities was 521.83 Lakhs. This was mainly on account of proceeds from long-term borrowings of 963.30 Lakhs, repayment of Long-Term Borrowings of 1,181.84 Lakhs, repayment of Short-Term Borrowings of 23.79 Lakhs and Finance Cost of 279.50 Lakhs.

RELATED PARTY TRANSACTIONS

Related party transactions with certain of our promoter, directors and their entities and relatives primarily relate to remuneration, salary, commission and issue of Equity Shares. For further details of related parties kindly refer chapter titled Restated Financial Statements beginning on page 226 of this Draft Red Herring Prospectus.

OFF-BALANCE SHEET ITEMS

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

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

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

QUALITATIVE DISCLOSURE ABOUT MARKET RISK

Financial Market Risks

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

Interest Rate Risk

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

Effect of Inflation

We are affected by inflation as it has an impact on the salary, wages, etc. We rework our margins in line with changing inflation rates, so as to absorb the inflationary impact.

Credit Risk

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

OTHER MATTERS

Details of Default, if any, including therein the amount involved, duration of default and present status, in repayment of Statutory Dues or repayment of Debentures or repayment of Deposits or repayment of Loans from any bank or financial institutions

Except as disclosed in chapter titled Restated Financial Statements beginning on page 226 of this Draft Red Herring Prospectus, there have been no defaults in payment of statutory dues or repayment of debentures and interest thereon or repayment of deposits and interest thereon or repayment of loans from any bank or financial institution and interest thereon by the Company.

Material Frauds

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

Unusual or infrequent events or transactions

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

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

Indian rules and regulations as well as the overall growth of the Indian economy have a significant bearing on our operations. Major changes in these factors can significantly impact income from continuing operations. There are no significant economic changes that materially affected our Companys operations or are likely to affect income from continuing operations except as described in chapter titled Risk Factors beginning on page 26 of this Draft Red Herring Prospectus.

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

Other than as described in the section titled Risk Factors and chapter titled Managements Discussion and Analysis of Financial Conditions and Results of Operations , beginning on page 26 and 277 of this Draft Red Herring Prospectus respectively to our knowledge there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our company from continuing operations.

Future relationship between Costs and Income

Other than as described in the section titled Risk Factors beginning on page 26 of this Draft Red Herring Prospectus, to our knowledge there are no factors, which will affect the future relationship between costs and income or which are expected to have a material adverse impact on our operations and finances.

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

Changes in revenue in the last three financial years are as explained in the part Financial Year 2024-25 compared with Financial Year 2023-24 and Financial Year 2023-24 Compared with Financial Year 2022-23 above.

Significant dependence on a single or few Suppliers or Customers

The percentage of contribution of our Companys Top Customers & Suppliers have been mentioned under para Our Major Customer / Suppliers in the chapter titled Our Business on page 148 of this Draft Red Herring Prospectus.

Status of any publicly announced new products or business segments

Please refer to the chapter titled Our Business beginning on page 148 of this Draft Red Herring Prospectus for new products or business segments.

The extent to which the business is seasonal

Our business is not seasonal in nature.

Competitive Conditions

Competitive conditions are as described in the Chapter Our Business beginning on page148 of this Draft Red Herring Prospectus.