Vinit Mobile Ltd Management Discussions

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations for the Period ended June 30, 2025, Fiscal Years 2025, 2024, and 2023 is based on, and should be read in conjunction with, our Restated Financial Statements, including the schedules, notes and significant accounting policies thereto, included in the section titled “Restated Financial Information” beginning on page 200 of this Draft Red Herring Prospectus.

Our Restated Financial Statements have been derived from our audited financial statements and restated in accordance with the SEBI ICDR Regulations and amendments thereto and the ICAI Guidance Note. Our financial statements are prepared in accordance with AS. You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in this Draft Red Herring Prospectus.

You should also read the section titled “Risk Factors” beginning on page 33 of this Draft Red Herring Prospectus, which discusses a number of factors, risks and contingencies that could affect our financial condition and results of operations. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year are to the twelve-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to “we”, “us” or “our” refers to Vinit Mobile Limited, our Company. Unless otherwise indicated, financial information included herein are based on our “Restated Financial Information” for the period ended June 30, 2025, Fiscal Years 2025, 2024 and 2023 included in this Draft Red Herring Prospectus beginning on page 200 of this Draft Red Herring Prospectus.

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

BUSINESS OVERVIEW

Our Company, Vinit Mobile Limited is in the business of operating a multi-brand mobile retail chain offering smartphones and accessories through “COCO” (Company Owned, Company Operated) retail model. We deal in a wide range of mobile handsets of most of the major brands in India which includes Apple, One Plus, Motorola, Samsung, Vivo, Oppo, Realme and Xiaomi etc. Alongside smartphones, our stores also stock mobile-related products such as tablets, data cards, and a variety of accessories like earphones, chargers, power banks, screen guards and mobile covers, all available under one roof across our chain of 32 retail outlets.

Our stores are strategically situated in Pandesara, Kadodara, Sachin, Amroli, Hazira, Sayan, Saroli, and Nilgiri area of Surat district. This well-planned presence has enabled us to achieve strong market penetration and serve a broad and varied customer base effectively. At present, the Company operates 32 stores under COCO model across the Surat district of Gujarat.

Our Company was incorporated as “Tanya Silk Mills Private Limited” bearing Certificate of Incorporation Number U17120GJ2011PTC065617 under the provisions of the Companies Act, 1956 vide Certificate of Incorporation dated May 26, 2011, issued by the Assistant Registrar of Companies, Gujarat, Dadra and Nagar Havelli. Following the change in promoters and management to Mr. Vinit Jalan and Mrs. Shweta Jalan on January 20, 2020, the Company was renamed “Vinit Mobile Private Limited,” bearing a new Certificate of Incorporation Number U51100GJ2011PTC065617 under the provisions of the Companies Act, 2013 vide Certificate of Incorporation dated March 13, 2020, was issued by the Registrar of Companies, Ahmedabad. Further, upon the conversion of our Company into a public limited Company, the name of our Company was changed to “Vinit Mobile Limited” and a fresh Certificate of Incorporation dated May 21, 2025 was issued by the Registrar of Companies, Centre Processing Centre, Manesar. The Corporate Identification Number of our Company is U51100GJ2011PLC065617.

The Company is actively pursuing strategy for regional expansion and sustainable growth, underpinned by the industry experience of our Promotor, Chairman & Managing Director, Mr. Vinit Jalan. This strategic focus is immediately directed at key markets across India. We have pre-in advance secured specific trademarks and logos, including "UP Wala Mobile" for Uttar Pradesh, "RJ Mobile" for Rajasthan, and "Gj Mobile" for Gujarat. This action ensures the establishment of a strong, localized brand presence designed to maximize market share and drive significant regional growth.

Our business is subjected to various risks and uncertainties, including those discussed in the section titled “Risk Factors” beginning on page 33 of this Draft Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

1. Expansion of Our Distribution Network

As we continue to increase the number of our stores, we aim to make our “Vinit Mobile Limited”, brand more accessible to a broader customer base, thereby strengthening brand visibility and awareness in every new market we enter. The expansion of our retail network has historically enabled us to achieve significant economies of scale, improving operational efficiency across multiple cost areas. This growth also enhances our bargaining power with suppliers, allowing us to secure more competitive pricing on the products we procure for our customers.

2. Strategic Location and Facilities

Our stores are strategically located in high-traffic, well-known commercial areas, ensuring convenient access for customers throughout the week. Each store features a dedicated product display and demo zone where customers can explore and test products before purchasing, helping them make informed and confident decisions. By combining prime locations with an interactive in-store experience, we attract a wide customer base and deliver a superior shopping experience.

3. Consumer Spending, Demographics, and General Economic and Market Conditions in India Consumer spending habits, demographic trends, and overall economic conditions in India have a significant impact on our business. When disposable incomes rise, consumers are more likely to purchase discretionary products such as smartphones, often opting for upgraded or premium models. In contrast, during periods of economic slowdown, customers tend to shift toward more affordable or mid-range options.

Indias young population and increasing digital adoption also play an important role in shaping buying behavior, driving demand across different price segments. Understanding these economic and demographic factors helps us adjust our product offerings and better respond to changing consumer needs.

4. Maintaining Market Superiority

We aim to strengthen our market position by expanding existing product lines and introducing new offerings across both high-end and mid-range segments, capitalizing on the growing demand for innovative products. Our diverse product portfolio gives us a competitive advantage, allowing us to meet a wide range of customer needs. To maintain this edge, we will continue to monitor market trends and regularly add new, high-quality products, ensuring our offerings remain relevant and appealing in a dynamic market.

5. Efficient management of our existing stores

Our financial performance is closely tied to the number, location, and performance of our mobile and accessories stores. Efficient management of these stores requires careful selection of high-traffic locations, negotiating favourable lease terms, optimizing supply chain and inventory, and ensuring our product mix meets evolving customer preferences. Maintaining consistent service quality, an engaging in-store experience, and a well-trained sales team are critical factors that influence customer footfall and overall store profitability.

Our primary operating expenses include product procurement, employee salaries and benefits, lease rentals, marketing, freight, and depreciation. Salaries and rental costs form a significant portion of expenses and directly affect store-level profitability. Store performance depends not only on location but also on the ability of store managers and staff to drive sales and provide superior customer service. By retaining and upskilling our workforce and leveraging our multi-format store network, we aim to optimize costs, achieve operational efficiencies, and maintain strong growth while enhancing the overall shopping experience for our customers.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO LATEST AUDIT PERIOD FOR THE PERIOD ENDED JUNE 30, 2025

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

For more details kindly refer to section titled “Restated Financial Information” beginning on page 200 of this Draft Red Herring Prospectus.

In evaluating our business, we consider and use certain key performance indicators that are presented below as supplemental measures to review and assess our operating performance. The presentation of these key performance indicators is not intended to be considered in isolation or as a substitute for the Restated Financial Information included in this Draft Red Herring Prospectus. We present these key performance indicators because they are used by our management to evaluate our operating performance. Further, these key performance indicators may differ from the similar information used by other companies, including peer companies, and hence their comparability may be limited. Therefore, these matrices should not be considered in isolation or construed as an alternative to AS measures of performance or as an indicator of our operating performance, liquidity, profitability or results of operation. A list of our KPIs for the period ended June 30, 2025 and Financial year ended 2025, 2024 and 2023 is set out below:

(Rs. in Lakhs except otherwise stated)

Sr. No.	Particulars	June 30, 2025*	March 31, 2025	March 31, 2024	March 31, 2023
1	Revenue from Operations (Rs. in lakhs)	1,809.36	5,998.86	2,856.32	0.22
2	Total income (Rs. in lakhs)	1833.28	6062.66	2859.03	0.22
3	Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) (Rs. in lakhs) (a)	166.43	571.78	104.67	-0.04
4	EBITDA Margins (%)(b)	9.20%	9.53%	3.66%	-
5	Profit after Tax (PAT) (Rs. in lakhs)	100.1	390.21	71.99	-0.06
6	PAT Margins (%)(c)	5.46%	6.44%	2.52%	- %
7	Cash Profit after Tax (Rs. in lakhs) (d)	105.62	399.25	71.99	-0.06
8	Current Ratio(e) (In times)	1.38	1.46	1.16	4.71
9	Net Worth(f)	560.34	460.25	70.04	-1.95
10	Debt-Equity Ratio(g) (In times)	0.82	0.66	4.43	-
11	Return on Equity (%)(h)	17.86%	84.78%	102.79%	-
12	Return on Capital Employed (%)w	15.75%	73.66%	27.51%	-

*As certified by M/s R V D & Co., Chartered accountants, Peer Review Auditor of our Company, by way of their certificate dated December 06, 2025.

Notes:

(a) EBITDA has been calculated as a sum of profit before tax, finance costs and depreciation and amortization.

(b) EBITDA Margins is calculated as EBITDA divided by Revenue from Operation.

(c) PAT Margins (%) is calculated as Profit After Tax carried to balance sheet divided by Total Income.

(d) Cash Profit After Tax is calculated as a sum of Profit After Tax to balance sheet and Depreciation and Amortization as per Restated Financial Information.

(e) Current Ratio is calculated as Total Current Assets divided by Total Current Liabilities.

(f) Net worth is calculated as Equity Share Capital plus Reserve and Surplus.

(g) Debt-Equity Ratio is calculated as Total Debt divided by Net-Worth as per Restated Financial Information. Total Debt is calculated as a sum of Long-Term Borrowings and Short-Term Borrowings.

(h) Return on Equity is calculated as Restated profit after tax After Tax carried to balance sheet for the year divided by net worth.

(i) Return on Capital Employed is calculated as Earnings Before Interest and Tax divided by Capital Employed. Capital employed is calculated as sum of net worth and Long-Term Borrowings and Short term.

Key Components of our Statement of Profit and Loss based on our Restated Financial Information:

The following table sets forth financial data from our Restated Financial Information of profit & loss for the period ended June 30, 2025, and financial year ended March 31, 2025, March 31, 2024, and March 31, 2023, the components of which are also expressed as a percentage of total revenue for such periods:

(Rs. in Lakhs except otherwise stated)

Particular	For the period ended June 30, 2025
	Rs. in Lakhs	% of Total Revenue
(A) Revenue
Revenue from operations	1,809.36	98.70%
Other income	23.92	1.30%
Total revenue	1,833.28	100%
(B) Expenses
Purchase of Stock-in-trade	1,722.82	93.97%
Changes in inventories of Finished Goods, WIP and Traded Goods	(140.29)	(7.65%)
Employee Benefits Expense	36.75	2%
Finance Costs	27.94	1.52%
Depreciation and Amortisation Expense	5.53	0.30%
Other Expenses	47.56	2.59%
Total Expenses	1,700.32	92.75%
Profit Before Exceptional & Extraordinary Items & Tax	132.97	7.25%
Exceptional/Prior Period Items	-	-
Profit Before Tax	132.97	7.25%
Tax Expense
Current Tax	33.40	1.82%
Previous Year Tax	-	-
MAT Entitlement	-	-
Deferred Tax (Credit)/Charge	(0.53)	(0.03%)
Profit / (Loss) for the period / year	100.10	5.46%

(Rs. in Lakhs except otherwise stated)

Particular	For the FY ended March 31, 2025		For the FY ended March 31, 2024		For FY ended March 31, 2023
	(Rs. in Lakhs)	% Total Revenue	(Rs. in Lakhs)	% Total Revenue	(Rs. in Lakhs)	% Total Revenue
(A) Revenue
Revenue from operations	5,998.86	98.95%	2,856.32	99.91%	0.22	100%
Other income	63.79	1.05%	2.70	0.09%		-
Total revenue	6,062.66	100%	2,859.03	100%	0.22	100%
(B) Expenses
Purchase of Stock-in-trade	5,355.86	88.34%	2,882.82	100.83%	0.17	77.27%
Changes in inventories of Finished Goods, WIP and Traded Goods	(209.78)	(3.46%)	(398.84)	(13.95%)	-	-
Employee Benefits Expense	199.20	3.29%	173.80	6.08%	-	-
Finance Costs	41.74	0.69%	7.96	0.28%	0.02	9.09%
Depreciation and Amortisation Expense	9.04	0.15%	-	-	-	-
Other Expenses	145.60	2.40%	96.57	3.37%	0.10	45.45%
Total Expenses	5,541.67	91.40%	2,762.31	96.61%	0.28	127.27%
Profit Before Exceptional & Extraordinary Items & Tax	520.99	8.59%	96.71	3.38%	(0.06)	(27.27%)
Exceptional/Prior Period Items	-	-	-	-	-	-
Profit Before Tax	520.99	8.59%	96.71	3.38%	(0.06)	(27.27%)
Tax Expense
Current Tax	131.34	2.17%	24.84	0.87%	-	-
Previous Year Tax	-	-	-	-	-	-
MAT Entitlement	-	-	-	-	-	-
Deferred Tax (Credit)/Charge	(0.55)	(0.01%)	(0-12)	(0.004%)	-	-
Profit / (Loss) for the period / year	390.21	6.44%	71.99	2.51%	(0.06)	(27.27%)

Below analysis is based on Restated Financial Information as they are comparable from earlier years. Revenue from Operations

Revenue from operations for the period ended June 30, 2025 amounted to Rs. 1,809.36 lakhs and represents 98.70% of the total revenue of the Company for the said period (total revenue Rs. 1,833.28 lakhs). Revenue from operations mainly consists of Sales trading goods/products such as mobiles, tablets, accessories and other services.

Other Income

Other income for the years ended March 31, 2025 amounted to Rs. 63.79 lakhs (1.05% of total revenue). Other

Income includes interest income, discount, write back and other income.

Expenses

Companys expenses consist of Purchase of stock in trade, change in inventories, Employee Benefit Expenses, Finance Cost, Depreciation and Amortisation Expenses and Other Expenses.

Purchase of Stock-in-trade

Purchase of Stock in trade includes purchase of trading goods/products such as mobiles, tablets, and accessories.

Changes in inventories

This includes the change in the stock of the goods in trade.

Employee Benefits Expense

Employee benefit expenses include Director Remuneration, Salaries & Wages, Contribution to provident fund, Gratuity and other staff welfare expenses.

Finance Cost

Finance cost includes Interest paid on borrowings & Bank Charges and other borrowing cost.

Depreciation and Amortization Expense

Depreciation and amortisation expenses include (i) Depreciation on property, plant and equipment and (ii) amortization of intangible assets.

Other Expenses

Other expenses include Electricity Expenses, Shop Rent Expense, Commission Expense, Advertising Expenses, Shop expense, Legal Expenses, Professional Fee, Office Expenses, Audit Fees, Post And Courier, Travelling Expenses, POS Service Charges, Software Maintenance Expenses, Promotion Expenses, Insurance Expenses, Printing And Stationery Expense, Computer Expenses, Repair And Maintenance Expenses, Business Related Expense, and Other Expenses.

COMPARISON OF FINANCIAL YEAR ENDED MARCH 31, 2025 TO FINANCIAL YEAR ENDED MARCH 31, 2024

Revenue from Operations

Our revenue from operations has increased by 110.02% to Rs. 5,998.86 lakhs in FY ended March 31, 2025 from Rs. 2856.32 lakhs in FY ended March 31, 2024. This growth was primarily driven by the companys strategic expansion, which included the opening of new retail stores by broadening its presence in diverse locations. The net number of retail stores increased from 19 in FY 2023-24 to 24 in FY 2024-25.

Further, as the Company grew it has been successful in securing orders from the other retail stores and corporate units resulting into bulk selling in B2B segment. The same is illustrated as below:

(in Rs. Lakhs)

Particulars	For the period ended June 30, 2025		For the FY ended March 31, 2025		For the FY ended March 31, 2024		For FY ended March 31, 2023
	Revenue (Rs. in Lakhs)	Revenue (in %)	Revenue (Rs. in Lakhs)	Revenue (in %)	Revenue (Rs. in Lakhs)	Revenue (in %)	Revenue (Rs. in Lakhs)	Revenue (in %)
B2B Sales	834.91	45.54%	1,937.59	31.96%	410.12	14.34%	-	-
B2C Sales	998.37	54.46%	4,125.06	68.04%	2,448.90	85.66%	0.22	100.00

Other Income:

Other income increased by 2,262.59% from Rs. 2.70 lakhs in FY 2023-24 to Rs. 63.79 lakhs in FY 2024-25. In FY 2024. The increase is mainly due to increase in the interest income earned by the Company.

Expenditure

Total expenses increased from Rs. 2,762.31 lakhs for FY 2023-24 to Rs. 5,541.67 lakhs for the FY 2024-25, driven by higher purchase of stock-in-trade and other expenses aligned with revenue growth.

Purchase of Stock-in-trade

Purchase of stock-in-trade increased by 85.79% from Rs. 2,882.82 lakhs in FY 2023-24 to Rs. 5,355.86 lakhs in FY 2024-25. This increase is aligned with revenue growth from operations.

Changes in inventories

Change in inventories improved from a reduction of Rs. 398.84 lakhs in FY 2023-24 to a reduction of Rs. 209.78 lakhs in FY 2024-2025. This smaller inventory drawdown supported higher sales volumes while maintaining stock levels.

Employee Benefits Expense

Employee benefit expenses were Rs. 199.20 lakhs for the FY 2024-25 and Rs. 173.80 lakhs for the FY 2023-24. These primarily comprise director remuneration, Salaries wages and bonus, provident fund contributions, Employees State Insurance (ESI) scheme, staff welfare expenses, and provisions for gratuity.

Depreciation and amortization Expense

Depreciation and amortization expenses totaled Rs. 9.04 lakhs for FY 204-25, comprising Rs. 7.31 lakhs on tangible assets and Rs. 1.73 lakhs on intangible assets, compared to nil for FY 2023-2024 due to addition of depreciable assets. Also, earlier the Company was recording the setup cost as an expense which the company has started to capitalize from FY 2024-25 onwards as the company expects the economic benefits of the store set up will flow for more than One year.

Other Expenses

Other expenses increased by 50.77% from Rs. 96.57 lakhs in FY 2023-24 to Rs. 145.60 lakhs in FY 2024-25, comprising rent expenses of Rs. 66.61 lakhs, shop expenses of Rs. 30.01 lakhs, electricity expenses of Rs. 22.59 lakhs, software charges of Rs. 10.89 lakhs, sales & promotional expenses of Rs. 3.21 lakhs, audit fees of Rs. 3.16 lakhs, and other expenses including business promotion, bank charges, professional fees, travelling expenses, insurance, maintenance, and miscellaneous expenses. This increase is aligned with revenue growth from operations.

Profit Before Tax

Profit before tax increased by 438.71% from Rs. 96.71 lakhs for the FY 2023-24 to Rs. 520.99 for the FY 2024-25. This growth resulted from higher revenue from operations, improved B2B sales contribution, controlled employee benefit expenses as a percentage of revenue, and efficient other expense management despite their absolute increase.

Tax Expense

Tax expenses increased significantly for the FY 2024-25, with current tax at Rs. 131.34 lakhs and deferred tax credit of Rs. 0.55 lakhs, compared to current tax of Rs. 24.84 lakhs and deferred tax credit of Rs. 0.12 lakhs for the year ended March 31, 2024. This rise in current tax primarily resulted from higher profit before tax (up 438.71%), reflecting improved profitability from revenue growth.

Profit / (Loss) for the period / year

Profit after tax increased from Rs. 71.99 lakhs for the FY 2023-24 to Rs. 390.21 lakhs for the FY 2024-25. This growth resulted from higher profit before tax due to revenue expansion, despite elevated current tax provisions reflecting improved profitability from stronger Revenue from operations and operational efficiencies.

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

Revenue from Operations

Revenue from operations increased from minimal levels in FY 2022-23 to Rs. 2,856.32 lakhs in FY 2023-24, marking the companys initial scaling phase. This growth established the operational foundation through establishment of sales infrastructure and initial customer acquisition.

Key Drivers of Revenue Increase:

• Business Commencement: FY 2023 represented early startup phase with negligible revenue (Rs. 0.22 lakhs), while FY 2024 saw full-year operations across B2C channels (85.66% of sales at Rs. 2,448.90 lakhs).

• B2B Sales Initiation: Introduction of B2B segment contributing Rs. 410.12 lakhs (14.34%), including top 10 customers at Rs. 335.65 lakhs (11.75%), indicating early corporate client relationships.

Other Income

Other income increased from negligible levels in FY 2022-23 to Rs. 2.70 lakhs (0.09% of revenue) in FY 2023-24, comprising Dealer Buy Down (DBD) charges of Rs. 2.21 lakhs, rent income of Rs. 0.36 lakhs, and scrap sales of Rs. 0.13 lakhs, resulting from initial non-operating income generation as business operations scaled from the startup phase.

Expenditure

Total expenses increased from Rs. 0.28 lakhs for the year ended March 31, 2023 to Rs. 2,762.31 lakhs for the year ended March 31, 2024, driven by higher purchase of stock-in-trade aligned with revenue growth.

Purchase of Stock-in-trade

Purchase of stock-in-trade increased from Rs. 0.17 lakhs in FY 2023 to Rs. 2,882.82 lakhs in FY 2024 through initial inventory buildup for business operations.

Changes in inventories

Changes in inventories increased in FY 2023-24 to Rs. 398.84 lakhs to meet the customer demand. This reflects higher inventory levels as stock purchases expanded for operations.

Employee Benefits Expense

Employee benefit expenses increased to Rs. 173.80 lakhs in FY 2023-24, reflecting higher provisions for staff costs as operations expanded.

Depreciation and Amortization Expense

There was no depreciation expense recorded in FY 2023-24 and in FY 2022-23 as there was no capital asset and the company was recording the store set up cost as an expense.

Other Expenses

Other expenses rose from Rs. 0.10 lakhs in FY 2022-23 to Rs. 96.57 lakhs in FY 2023-24, reflecting scaled administrative, legal, and miscellaneous costs for new operations.

Profit Before Tax

Profit before tax increase from a minimal loss of 0.06 lakhs in FY 2022-23 to a profit of Rs. 96.71 lakhs in FY 2023-24, due to increase in operations and revenue.

Tax Expense

Tax expense was Nil due to loss in FY 2022-23 and Rs. 24.72 lakhs (current tax, with Rs. 0.12 lakhs deferred tax credit) in FY 2023-24 due to profitability in the FY 2023-24.

Profit / (Loss) for the period / year

Profit after tax turned around from a Rs. 0.06 lakhs loss in FY 2022-23 to Rs. 71.99 lakhs profit in FY 2023-24, as revenue increased from Rs. 0.22 lakhs to Rs. 2,859.03 lakhs while expenses reached Rs. 2,762.31 lakhs.

CASH FLOW

(Rs. in Lakhs)

	For the period ended June 30, 2025	For the financial year ended
Particular		March 31, 2025	March 31, 2024	March 31, 2023
Net Cash Generated from Operating Activities (A)	(142.25)	220.92	(282.91)	0.02
Net Cash Generated from Investing Activities (B)	(6.77)	(63.27)	(5.34)	-
Net Cash Generated from Financing Activities (C)	129.70	(48.59)	299.18	-
Net Increase/(Decrease) in Cash and Cash Equivalents (A+B+C)	(19.31)	109.07	10.93	0.02
Cash and cash equivalents at the beginning of the period/ year	120.44	11.38	0.45	0.43
Closing balance of Cash and Cash Equivalents	101.13	120.44	11.38	0.45

Cash Flow from Operations Activities For the period ended June 30, 2025

Our net cash used in operating activities was Rs. 142.25 lakhs. This comprised profit before tax, adjusted for depreciation and amortization expenses, finance costs, and non-cash items. Operating profit/(loss) before working capital changes adjusted for increases in inventories and trade receivables, offset by increases in trade payables and other liabilities, and income taxes paid.

For the Financial year ended March 31, 2025

Our net cash generated from operating activities was Rs. 220.92 lakhs. This comprised profit before tax, adjusted for depreciation and amortization expenses and finance costs. Operating profit before working capital changes adjusted for changes in inventories, trade receivables, short-term loans and advances, other current assets, trade payables, other current liabilities, provisions, and income taxes paid.

For the Financial year ended March 31, 2024

Our net cash used in operating activities was Rs. 282.91 lakhs. This comprised profit/(loss) before tax, adjusted for depreciation and amortization expenses and finance costs. Operating profit/(loss) before working capital changes adjusted for increases in inventories, trade receivables, short-term loans and advances, and other current assets, offset by increases in trade payables and other current liabilities, changes in provisions, and income taxes paid.

For the Financial year ended March 31, 2023

Our net cash generated from operating activities was Rs. 0.02 lakhs. This comprised profit before tax, adjusted for depreciation and amortization expenses and finance costs. Operating profit before working capital changes adjusted for working capital movements including inventories, receivables, payables, loans and advances, and income taxes.

Clash flow from Investing Activities For the period ended June 30, 2025

Net cash used in investing activities was Rs. 6.77 lakhs, which comprised purchase of property, plant, and equipment.

For the Financial year ended March 31, 2025

Net cash used in investing activities was Rs. 63.27 lakhs, which comprised purchase of property, plant, and equipment and purchase of software.

For the Financial year ended March 31, 2024

Net cash used in investing activities was Rs. 5.34 lakhs, which comprised purchase of property, plant, and equipment.

For the Financial year ended March 31, 2023

Net cash used in investing in activities was NIL as there was no capital expenditure.

Clash flow from Financing Activities For the period ended June 30, 2025

Net cash generated from financing activities was Rs. 129.70 lakhs, which comprised proceeds from borrowings and finance costs paid.

For the Financial year ended March 31, 2025

Net cash used in financing activities was Rs. 48.59 lakhs, which comprised repayments of borrowings and finance costs paid.

For the Financial year ended March 31, 2024

Net cash generated from financing activities was Rs. 299.18 lakhs, which comprised proceeds from borrowings and finance costs paid.

For the Financial year ended March 31, 2023

Net cash generated from financing activities was nil as the company had no borrowing or repayment.

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

To our knowledge there have been no unusual or infrequent events or transactions that have taken place during the last three (3) years and for period of last three (3) months.

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

Our business has been subject, and we expect it to continue to be subject to significant economic changes arising from the trends identified above in ‘Factors Affecting our Results of Operations and the uncertainties described in the section entitled “Risk Factors” beginning on page 33 of this Draft Red Herring Prospectus. To our knowledge, except as we have described in this Draft Red Herring Prospectus, there are no known factors which we expect to bring about significant economic changes.

Income and Sales on account of major product/main activities

Our Company deals in the multi-brand mobile retail sector, specializing in the sale of Smartphones, Tablets and mobile accessories.

Whether the Company has followed any unorthodox procedure for recording sales and revenues

Our Company has not followed any unorthodox procedure for recording sales and revenues.

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

Apart from the risks as disclosed under section titled “Risk Factors” beginning on page 33 of this Draft Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

Extent to which material increases in net sales or revenue are due to increase in services

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

Status of any publicly announced new products or business segment.

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

The extent to which business is seasonal.

Our business is not seasonal in nature.

Significant Dependence on a Single or Few Customers

The percentage of revenue from operations derived from our top customers is given below:

(Rs. in Lakhs)

	For the period ended June 30, 2025		For the FY ended March 31, 2025		For the FY ended March 31, 2024		For the FY ended March 31, 2024
Particular	Rs. in Lakhs	% Total Revenue	Rs. in Lakhs	% Total Revenue	Rs. in Lakhs	% Total Revenue	Rs. in Lakhs	% Total Revenue
Top 2 customers	328.79	18.17	466.99	7.78	243.06	8.51	N.A.	N.A.
Top 5 customers	600.50	33.19	955.94	15.94	298.92	10.47	N.A.	N.A.
Top 10 customers	763.92	42.22	1,391.06	23.19	335.65	11.75	N.A.	N.A.

*Data of Customers for FY 2022-23 is unavailable with the company as company had transaction of purchase and sale of sim cards only.

As certified by M/s R V D & Co., Chartered accountants, Peer Review Auditor of our Company, by way of their certificate dated December 06, 2025.