Workmates Core2cloud Solution Ltd Management Discussions

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS

The following discussion is intended to convey managements perspective on our financial condition and results of operations for the period ended November 30, 2024 and the financial years ended March 31, 2024; March 31, 2023 and March 31, 2022. One should read the following discussion and analysis of our financial condition and results of operations in conjunction with our section titled "Financial Statement" on page 163 of the Draft Red Herring Prospectus. This discussion contains forwardlooking 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 23 of this Draft 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 16 of this Draft Red Herring Prospectus. Unless otherwise stated, the financial information of our Company used in this section has been derived from the Restated Consolidated 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 Workmates Core2Cloud Solution Limited, our Company. Unless otherwise indicated, financial information included herein are based on our Restated Consolidated Financial Statements for the period ended November 30, 2024 and the financial years ended March 31, 2024; March 31, 2023 and March 31, 2022 included in this Draft Red Herring Prospectus.

BUSINESS OVERVIEW

Workmates is a cloud and digital transformation companies, dedicated to helping enterprises modernize, secure, and scale their digital core. In just six years, we have grown from a startup to a Premier Tier AWS Partner — a distinction recognised for only a select group globally by AWS. This status reflects our deep technical expertise, proven customer success, and our ability to deliver complex cloud projects at scale.

Completely bootstrapped and built with unwavering passion and grit, Workmates is led by a dynamic and visionary team of cofounders and professionals who have successfully steered the company to date. We were recently recognized as the AWS Consulting Partner of the Year 2025, a testament to our excellence in delivery, innovation, and customer satisfaction.

Workmates delivers a full spectrum of cloud and cloud-centric services — spanning workload assessment, seamless migration, application modernization, and end-to-end managed services — in strategic collaboration with Amazon Web Services (AWS). Our solutions are designed not only to move businesses to the cloud but to enable them to unlock the full potential of digital transformation and Generative AI with agility, security and scale.

Workmates comprehensive range of services enables us to partner with customers throughout their entire cloud and digital transformation journey, Now further strengthened by the growing adoption of AI and Generative AI technologies into cloud technology. Our engagement typically begins with a thorough assessment of the customers existing IT landscape to understand their business needs and readiness for the cloud. We then design and execute a seamless migration and implementation plan that ensures minimal disruption and maximum value. Post-migration, we help customers modernize their applications to fully leverage cloud-native capabilities, improving agility, scalability, and performance. Beyond the initial transformation, our managed services provide continuous monitoring, optimization, security, and compliance support ensuring customers derive ongoing value, efficiency, and innovation from their cloud environment. This end-to-end capability positions Workmates not just as a service provider for one-time migrations, but as a long-term digital partner driving sustainable growth and transformation for our clients.

In addition to our core cloud services, Workmates offers integration of cybersecurity solutions of third party OEMs into cloud to ensure that our customers digital environments remain secure, compliant, and resilient. As businesses increasingly rely on cloud platforms, protecting sensitive data and ensuring secure operations has become critical. We integrate leading cybersecurity tools and best practices into every stage of the cloud journey covering threat detection, data protection, access control, and compliance so that customers can operate confidently in a secure digital environment.

For details of our business, please refer "Our Business" on page 107 of the DRHP.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST AUDITED FINANCIALS

After the date of last Audited Accounts i.e. for the period ended November 30, 2024, the Directors of our Company confirm that, there have not been any significant material developments.

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 23 of this DRHP. Our results of operations and financial conditions are affected by numerous factors including the following:

1. We are dependent on a few customers for a major part of our revenues. Further we do not have any long-term commitments from customers and any failure to continue our existing arrangements could adversely affect our business and results of operations.

2. We are primarily dependent on few key suppliers for procurement of products and services. Any delay, interruption or reduction in the supply of products and services may adversely affect our business, results of operations, cash flows and financial conditions.

3. In future the company will be entering the Big Enterprise Business segment also. The Company will be subjected to a bigger working capital cycle which will be impacting the Cash Flow and Liquidity position of the company.

4. We are dependent on our ability to develop new services and products, and enhance our existing services and products.

If our products and services do not gain market acceptance, our operating results may be negatively affected.

5.0^ Companys success depends largely upon to skilled professionals and its ability to attract and retain these personnel. The industry where our Company operates is a highly skilled and technical employee intensive industry.

DISCUSSION ON RESULT OF OPERATION

Our Significant Accounting Policies

For Significant accounting policies please refer Significant Accounting Policies, under Chapter titled "Financial Statements" beginning on page 163 of the Draft Red Herring Prospectus.

Overview of Revenue & Expenditure

Our revenue and expenses are reported in the following manner:

Revenues

Revenue of operations

The revenue of operations comprises of revenue from Consultancy and services, Development and Reselling of cloud management, information technology, content creation.

Other Income

Our other income mainly consists of interest income, profit on sale of assets and discount.

The below table show our revenue for the period ended November 30, 2024 and fiscal 2024, 2023 and 2022:

Particulars	As at November 30, 2024	As at March 31, 2024	As at March 31, 2023	As at March 31, 2022
Incomes:
Revenue from Operations	6,361.55	5,322.50	2,895.06	1,280.03
% of total revenue	99.27	99.43	99.35	99.92
Other income	46.57	30.44	18.82	1.00
% of total revenue	0.73	0.57	0.65	0.08
Total Revenue	6,408.12	5,352.94	2,913.88	1,281.03

Expenditure

Our total expenditure primarily consists of cost of cloud technologies and allied services, employee benefits expenses, finance cost, depreciation and amortization and other expenses.

Cost of materials consumed

This represents cost of cloud technologies comprises of AWS Consumption charges, Content Creation and Web display Expenses, SSL Certificate Charges, Domain Purchase and Software licensing Expenses.

Employment Benefit Expenses

It includes salaries, wages, bonus and incentives; Employers Contribution to PF and ESIC; Staff Welfare and Medical Insurance Expenses and Development expenses; Gratuity Expenses and Director Remuneration.

Other Expenses

It includes Professional and Consultancy fees; Tour, Travelling and Conveyance; Exhibition and Customer Meet Expenses, Office Rent; Annual Software License Subscription Fees; Commission Expenses and General and Miscellaneous Expenses.

Finance Costs

Our finance costs mainly include Interest expenses and Loan processing charges.

Depreciation

Depreciation includes depreciation and amortization.

RESULTS OF OUR OPERATION

Particulars	As at November 30, 2024	As at March 31, 2024	As at March 31, 2023	As at March 31, 2022
Incomes:
Revenue from Operations	6,361.55	5,322.50	2,895.06	1,280.03
% of total revenue	99.27	99.43	99.35	99.92
% Increase/(Decrease) as per value terms	-	83.85	126.17	203.09
% Increase/(Decrease) as a % of revenue	-	0.08	(0.57)	0.04
Other income	46.57	30.44	18.82	1.00
% of total revenue	0.73	0.57	0.65	0.08
% Increase/(Decrease) as per value terms	-	61.78	1773.13	108.17
% Increase/(Decrease) as a % of revenue	-	(11.93)	723.49	(31.29)
Total Revenue	6,408.12	5,352.94	2,913.88	1,281.03
% Increase/(Decrease) as per value terms	-	83.71	127.46	202.99
Expenses:
Cost of Cloud Technology and allied Services	3,992.31	3,407.29	1,939.22	787.31
% of total revenue	62.30	63.65	66.55	61.46
% Increase/(Decrease) as per value terms	-	75.70	146.31	223.64
% Increase/(Decrease) as a % of revenue	-	(4.36)	8.29	6.82
Employee Benefit expenses	669.06	654.97	369.45	199.32
% of total revenue	10.44	12.24	12.68	15.56
% Increase/(Decrease) as per value terms	-	77.28	85.35	124.66
% Increase/(Decrease) as a % of revenue	-	(3.50)	(18.51)	(25.85)
Other Expenses	427.37	521.15	334.76	119.67
% of total revenue	6.67	9.74	11.49	9.34
% Increase/(Decrease) as per value terms	-	55.68	179.74	260.03
% Increase/(Decrease) as a % of revenue	-	(15.26)	22.98	18.83
Total Expense	5,088.73	4,583.41	2,643.43	1,106.30
% of total revenue	79.41	85.62	90.72	86.36
% Increase/(Decrease) as per value terms	-	73.39	138.94	200.69
% Increase/(Decrease) as a % of revenue	-	(5.62)	5.05	(0.76)
Profit before Interest, Depreciation and T ax	1,319.38	769.53	270.44	174.73
% of total revenue	20.59	14.38	9.28	13.64
Less: Other Income	46.57	30.44	18.82	1.00
Operating Profit before Interest, Depreciation, T ax and other income	1,272.82	739.09	251.63	173.73
% of total revenue	19.86	13.81	8.64	13.56
% Increase/(Decrease) as per value terms	-	193.73	44.84	219.34
% Increase/(Decrease) as a % of revenue	-	59.89	(36.32)	5.40
Depreciation and amortization Expenses	25.06	21.24	16.87	6.08
% of total revenue	0.39	0.40	0.58	0.47
% Increase/(Decrease) as per value terms	-	25.93	177.57	126.03
% Increase/(Decrease) as a % of revenue	-	(31.45)	22.03	(25.40)
Profit before Interest and Tax	1,247.76	717.85	234.76	167.65
% of total revenue	19.47	13.41	8.06	13.09
Finance Cost	16.41	-	-	-
% of total revenue	0.26	0.00	0.00	0.00
% Increase/(Decrease) as per value terms	-	0.00	0.00	0.00
% Increase/(Decrease) as a % of revenue	-	0.00	0.00	0.00
Profit before T ax and Extraordinary Expenses	1,231.35	717.85	234.76	167.65
% of total revenue	19.22	13.41	8.06	13.09
Extraordinary Expenses	-	-	-	-
% of total revenue	-	-	-	-
% Increase/(Decrease) as per value terms	-	0.00	0.00	0.00
% Increase/(Decrease) as a % of revenue	-	0.00	0.00	0.00
Restated Profit/(Loss) before tax	1,231.35	717.85	234.76	167.65
% of total revenue	19.22	13.41	8.06	13.09
% Increase/(Decrease) as per value terms	-	205.78	40.03	205.46
% Increase/(Decrease) as a % of revenue	-	66.45	(38.44)	0.82
T ax expenses/(income)
Current Tax	313.84	210.82	69.86	44.32
Deferred Tax	18.61	(2.55)	(5.43)	(0.90)
Earlier Year Taxes	-	5.17	3.30	-
Total tax expenses	332.45	213.44	67.73	43.42
% of total revenue	5.19	3.99	2.32	3.39
Minority Interest	-	-	-	-
Restated profit/(loss) after T ax	945.47	534.85	185.84	125.23
% of total revenue	14.75%	9.99%	6.38%	9.78%
% Increase/(Decrease) as per value terms	-	187.80%	48.40%	208.68%
% Increase/(Decrease) as a % of revenue	-	56.66%	-34.76%	1.88%

Our income is dependent upon few major customers, details of the same is as following:

Particulars	November 30, 2024		2024		2023		2022
	( Rs. in Lakhs)	As a% of total Revenue	( Rs. in Lakhs)	As a% of total Revenue	( Rs. in Lakhs)	As a% of total Revenue	(Rs. in Lakhs)	As a% of total Revenue
Top five customers	3,787.83	59.54	2,825.93	53.09	1,104.53	38.15	529.35	41.35
Top ten customers	4,672.29	73.45	3,380.65	63.52	1,434.87	49.56	683.38	53.39

REVIEW OF OPERATIONS FOR THE PERIOD ENDED NOVEMBER 30, 2024 Revenue from Operations

The revenue from operations for the period ended November 30, 2024 was Rs.6,361.55 Lakhs which was about 99.27% of the total revenue and which comprises of revenue from Consultancy and services; Development and Reselling of cloud management, information technology, content creation, . The revenue has increased as result of increase in sale of services in domestic and international market with the growing adoption of cloud technologies by the enterprises.

Other Income

Our other income for the period ended November 30,2024 was Rs. 46.57 Lakhs which was about 0.73% of the total revenue and which includes interest income, bad debt recovered, liability no longer required written back and miscellaneous income.

Expenditure

Total Expenditure for the fiscal year ended November 30, 2024 was Rs. 5,462.66 Lakhs which was about 85.25% of the total revenue.

Cost of cloud technologies and allied services

The Cost of cloud technologies and allied services consumed for the period ended November 30, 2024 were Rs. 3,992.31 Lakhs which was about 62.30% of the total revenue.

Employee Benefits expenses

The employee benefits expenses for the period ended November 30,2024 were Rs. 669.06 Lakhs which was about 10.44% of the total revenue and which includes salaries, wages, bonus and incentives; Employers Contribution to PF and ESIC; Staff Welfare and Medical Insurance Expenses and Training expenses; Gratuity Expenses.

Other Expenses

Other Expenses for the period ended November 30, 2024 were Rs. 427.37 Lakhs which was about 6.67% of the total revenue and which includes Professional and Consultancy fees; Tour, Travelling and Conveyance; Exhibition and Customer Meet Expenses, Office Rent; Annual Software License Subscription Fees; Commission Expenses and General and Miscellaneous Expenses.

Operational EBITDA

Our Operational EBITDA for the period ended November 30, 2024 were Rs. 1,272.82 Lakhs (excluding other income) which was about 19.86% of total revenue. There is an increase in the Operational EBITDA as per period comparison. Operational EBITDA increased due to increased efficiency in operations and increase in the scale of operations which helped in normalizing variable costs.

Finance Costs

Finance costs for the period ended November 30, 2024 were Rs. 16.41 Lakhs which was about 0.26% of the total revenue and which consists of Interest Expenses and Loan Processing Charges.

Depreciation

Depreciation for the period ended November 30, 2024 were Rs. 25.06 Lakhs which was about 0.39% of the total revenue and which consists of depreciation and amortization expenses.

Profit /(Loss) after Tax

PAT for the period ended November 30, 2024 was Rs. 898.90 Lakhs which is about 14.03% of the total revenue.

REVIEW OF OPERATIONS FOR THE PERIOD ENDED MARCH 31, 2024 Revenue from Operations

Our revenue from operations for the fiscal year ended March 31, 2024 was Rs. 5,322.50 Lakhs which was about 99.43% of the total revenue and which comprises of revenue from Consultancy and services; Development and Reselling of cloud management, information technology, content creation, . The overall revenue has increased majorly as result of increase in sale of services to domestic and international territories.

Other Income

Our other income for the fiscal year ended March 31,2024 was Rs. 30.44 Lakhs which was about 0.57% of the total revenue and which includes interest income and liability no longer required written back.

Expenditure

Total Expenditure for the fiscal year ended March 31,2024 was Rs. 4,818.09 Lakhs which was about 90.01% of the total revenue. Cost of cloud technologies and allied services

The Cost of cloud technologies and allied services for the period ended March 31, 2024 were Rs. 3,407.29 Lakhs which was about 63.65% of the total revenue.

Employee Benefits expenses

The employee benefits expenses for the fiscal year ended March 31,2024 were Rs. 654.97 Lakhs which was about 12.24% of the total revenue and which includes salaries, wages, bonus and incentives; Employers Contribution to PF and ESIC; Staff Welfare and Medical Insurance Expenses and Training expenses; Gratuity Expenses.

Other Expenses

Other Expenses for the fiscal year ended March 31,2024 were Rs. 521.15 Lakhs which was about 9.74% of the total revenue and which includes Professional and Consultancy fees; Tour, Travelling and Conveyance; Exhibition and Customer Meet Expenses, Office Rent; Annual Software License Subscription Fees; Commission Expenses and General and Miscellaneous Expenses.

Operational EBIDTA

Our Operational Earnings before Interest, Depreciation and Tax for the fiscal year ended March 31,2024 were Rs. 739.09 Lakhs (excluding other income) which was about 13.81% of the total revenue.

Depreciation

Depreciation for the fiscal year ended March 31, 2024 were Rs. 21.24 Lakhs which was about 0.40% of the total revenue and which consists of depreciation and amortization expenses.

Profit /(Loss) after Tax

PAT for the fiscal year ended March 31, 2024 was Rs. 504.41 Lakhs which was about 9.42% of the total revenue.

FISCAL YEAR ENDED MARCH 31, 2024 COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2023 Total Revenue

Total revenue in by Rs. 2,439.06 Lakhs and 83.71 %, from Rs. 2,913.88 Lakhs in the fiscal year ended March 31,2023 to Rs. 5,352.94

Lakhs in the fiscal year ended March 31,2024 which comprises of revenue from Consultancy and services; Development and Reselling of cloud management, information technology, content creation. The overall revenue has increased majorly as result of increase in sale of services to domestic and international territories, recovery of earlier booked bad debt and miscellaneous income.

Total Expenditure

Total Expenditure has been increased by 76.61% from Rs. 2,728.03 Lakhs in the fiscal year ended March 31,2023 to Rs. 4,818.09

Lakhs in the fiscal year ended March 31, 2024. Overall Expenditure was increased mainly due to increase cost of cloud technology and allied services; Employee Benefit Expenses; Tax Expenses and Other Expenses. The total expenditure as a percentage of total revenue has been decreased by 3.86% from 93.62% of total revenue in the fiscal year ended March 31, 2023 to 90.01% of total revenue in the fiscal year ended March 31, 2024 which indicates the efficiency brought in by the company.

Cost of Cloud Technologies and Allied Services

Cost of cloud technologies and allied services has been increased by 75.70%, from Rs. 1,939.22 Lakhs in the fiscal year ended March 31, 2023 to Rs. 3,407.29 Lakhs in the fiscal year ended March 31, 2024. Cost of Cloud technologies and allied services is increased on account of increase in overall consumption of cloud space. The Cost of cloud technologies and allied services as a percentage of total revenue has been decreased by 4.36% from 66.55% of total revenue in the fiscal year ended March 31, 2023 to 63.65% of total revenue in the fiscal year ended March 31, 2024 which indicates the efficiency brought in by the company in higher profit margin, cost optimization and better resource allocation.

Employee Benefit Expenses

Employee Benefit Expenses has been increased by 77.28% from Rs. 369.45 Lakhs in the fiscal year ended March 31, 2023 to Rs.

654.97 Lakhs in the fiscal year ended March 31, 2024. The increase in employee benefit expenses is on account of higher revenue from operations thus resulting in increase in variable costs. The Employee Benefit Expenses as a percentage of total revenue has been decreased by 3.50% from 12.68% of total revenue in the fiscal year ended March 31,2023 to 12.24% of total revenue in the fiscal year ended March 31, 2024 which indicates positive sign of operational efficiency, not necessarily a employee compensation cut.

Other Expenses

Other Expenses has been increased by 55.68% from Rs. 334.76 Lakhs in the fiscal year ended March 31,2023 to Rs. 521.15 Lakhs in the fiscal year ended March 31, 2024. The increase was mainly due to Tour, Travelling & Conveyance, Professional Fees and Consultancy charges, Commission Expenses, Repairs and Maintenance charges, Office Rent, Bad Debts and Other Miscellaneous Expenses. The Other expenses as a percentage of total revenue has been decreased by 15.26% from 11.49% of total revenue in the fiscal year ended March 31,2023 to 9.74% of total revenue in the fiscal year ended March 31,2024 which indicates with growing total revenue the company has maintained strong operational discipline, strategic tech adoption, and a maturity level in managing other expenses.

Operational EBIDTA

Operating Earnings before Interest, Depreciation and Tax has been increased by 193.73% from Rs. 251.63 Lakhs in the fiscal year ended March 31, 2023 to Rs. 739.09 Lakhs in the fiscal year ended March 31, 2024. Operational Earnings before Interest, Depreciation and Tax was increased due to increased efficiency and increased margin on account of increase in scale of revenue from operations. The Operating Earnings before Interest, Depreciation and Tax as a percentage of total revenue has been increased by 59.89% from 8.64% of total revenue in the fiscal year ended March 31, 2023 to 13.81% of total revenue in the fiscal year ended March 31, 2024 which is typically the result of higher-margin revenue streams, controlled cost base and effective operations and resource allocation.

Depreciation & Amortization Expenses

Depreciation & Amortization expenses have been increased by 25.93% from Rs. 16.87 Lakhs in the fiscal year ended March 31, 2023 to Rs. 21.24 Lakhs in the fiscal year ended March 31, 2024. The increase in depreciation is primarily attributable to the expansion in assets and is a general trend for growing businesses. The Depreciation & Amortization expenses as a percentage of total revenue have been decreased by 31.45% from 0.58% of total revenue in the fiscal year ended March 31,2023 to 0.40% of total revenue in the fiscal year ended March 31,2024 which is a positive sign for profitability and scalability which supports higher Operational EBIDTA margins.

Profit after Tax

Profit after Tax have been increased by 201.99% from Rs. 167.03 Lakhs in the fiscal year ended March 31, 2023 to Rs. 504.41

Lakhs in the fiscal year ended March 31, 2024. Profit after Tax was increased due to increased efficiency and increased margin on account of increase in scale of revenue from operations. The Profit after Tax as a percentage of total revenue have been increased by 64.39% from 5.73% of total revenue in the fiscal year ended March 31,2023 to 9.42% of total revenue in the fiscal year ended March 31, 2024 which is a positive sign for higher operating efficiency and higher cost controls.

FISCAL YEAR ENDED MARCH 31, 2023 COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2022 Total Revenue

Total revenue has been increased by 127.46%, from Rs. 1,281.03 Lakhs in the fiscal year ended March 31, 2022 to Rs. 2,913.88

Lakhs in the fiscal year ended March 31,2023 which comprises of revenue from Consultancy and services; Development and Reselling of cloud management, information technology, content creation, . The overall revenue has increased majorly as result of increase in sale of services to domestic and international territories, recovery of earlier booked bad debt and miscellaneous income.

Total Expenditure

Total Expenditure has been increased by 136.03%, from Rs. 1,155.80 Lakhs in the fiscal year ended March 31,2022 to Rs. 2,728.03

Lakhs in the fiscal year ended March 31, 2023. Overall Expenditure was increased mainly due to increase cost of cloud technology and allied services; Employee Benefit Expenses; Tax Expenses and Other Expenses. The total expenditure as a percentage of total revenue has been increased by 3.77% from 90.22% of total revenue in the fiscal year ended March 31, 2022 to 93.62% of total revenue in the fiscal year ended March 31, 2023 which indicates increased operational cost and margin dilution, increased talent acquisition cost and other miscellaneous reasons.

Cost of Cloud Technologies and Allied Services

Cost of cloud technologies and allied services have been increased by 146.31%, from Rs. 787.31 Lakhs in the fiscal year ended March 31, 2022 to Rs. 1,939.22 Lakhs in the fiscal year ended March 31, 2023. Cost of Cloud technologies and allied services is increased on account of increase in overall consumption of cloud space. The Cost of cloud technologies and allied services as a percentage of total revenue has been increased by 8.29% from 61.46% of total revenue in the fiscal year ended March 31, 2022 to 66.55% of total revenue in the fiscal year ended March 31,2023 which indicates increased operational cost and margin dilution.

Employee Benefit Expenses

Employee Benefit Expenses has been increased by 85.35% from Rs. 199.32 Lakhs in the fiscal year ended March 31, 2022 to Rs.

369.45 Lakhs in the fiscal year ended March 31, 2023. The increase in employee benefit expenses is on account of higher revenue from operations thus resulting in increase in variable costs. The Employee Benefit Expenses as a percentage of total revenue has been decreased by 18.51% from 15.56% of total revenue in the fiscal year ended March 31, 2022 to 12.68% of total revenue in the fiscal year ended March 31, 2023 which indicates positive sign of operational efficiency, not necessarily a employee compensation cut.

Other Expenses

Other Expenses has been increased by 179.74% from Rs. 119.67 Lakhs in the fiscal year ended March 31,2022 to f 334.76 Lakhs in the fiscal year ended March 31, 2023. The increase was mainly due to Tour, Travelling & Conveyance, Professional Fees and Consultancy charges, Advertisement charges, Exhibition and Customer meet expenses, Office rent, Bad Debts and Other miscellaneous expenses. The Other expenses as a percentage of total revenue has been increased by 22.98% from 9.34% of total revenue in the fiscal year ended March 31, 2022 to 11.49% of total revenue in the fiscal year ended March 31,2023 which indicates higher business development activities and higher customer acquisition cost.

Operational EBITDA

Operational Earnings before Interest, Depreciation and Tax has increased by 44.84%from Rs. 173.73 Lakhs in the fiscal year ended March 31, 2022 to f 251.63 Lakhs in the fiscal year ended March 31, 2023. Operational Earnings before Interest, Depreciation and Tax was increased due to increased efficiency and increased margin on account of increase in scale of revenue from operations. The Operating Earnings before Interest, Depreciation and Tax as a percentage of total revenue has been decreased by 36.32% from 13.56% of total revenue in the fiscal year ended March 31, 2022 to 8.64% of total revenue in the fiscal year ended March 31, 2023 which is indicate the increased operating cost at a faster pace rather than increase in revenue leading to margin compression.

Depreciation & Amortization Expenses

Depreciation & Amortization expenses have increased by 177.57% from Rs. 6.08 Lakhs in the fiscal year ended March 31,2022 to Rs. 16.87 Lakhs in the fiscal year ended March 31,2023. The Depreciation & Amortization expenses as a percentage of total revenue have been increased by 22.03% from 0.47% of total revenue in the fiscal year ended March 31,2022 to 0.58% of total revenue in the fiscal year ended March 31,2023 which indicates that the company has made significant capital investments to support growth to the company.

Profit after Tax

Profit after Tax have increased by 34.45% from Rs. 124.23 Lakhs in the fiscal year ended March 31, 2022 to Rs. 167.03 Lakhs in the fiscal year ended March 31, 2023. Profit after Tax was increased due to increased efficiency and increased margin on account of increase in scale of revenue from operations. The Profit after Tax as a percentage of total revenue have been decreased by 40.89% from 9.70% of total revenue in the fiscal year ended March 31, 2022 to 5.73% of total revenue in the fiscal year ended March 31,2023 which indicates increase in operational and non-operational expenditure outweighing revenue growth.

Cash Flows

Particulars	For the Period ended November 30, 2024	For the year ended March 31,
		2024	2023	2022
Net Cash from Operating Activities	123.79	957.71	235.64	189.87
Net Cash from Investing Activities	(1,311.09)	(391.73)	(18.26)	(38.45)
Net Cash used in Financing Activities	871.78	-	-	-

Cash Flows from Operating Activities

Net cash from operating activities for Period ended November 30, 2024 was at Rs. 123.79 lakhs as compared to the Operational EBIDTA at Rs. 1,272.82 lakhs. Net cash from operating activities for fiscal 2024 was at Rs. 957.71 lakhs as compared to the Operational EBIDTA at Rs. 739.09 lakhs, while for fiscal 2023, net cash from operating activities was at Rs. 235.64 lakhs as compared to the Operational EBIDTA (Post Tax) at Rs. 251.63 lakhs. For fiscal 2022, the net cash from operating activities was lakhs compared to Operational EBIDTA 173.73 lakhs.

Cash Flows from Investment Activities

Net cash from Investing activities for Period ended November 30, 2024 was at Rs. (1,311.09) lakhs on account of investment in Property, Plant & Equipment Net cash from investing activities for the fiscal 2024 was Rs. (391.73) lakhs on account of investment in Property, Plant & Equipment. Net cash from investing activities was at Rs. (18.26) lakhs and Rs. (38.45) lakhs and in the fiscal 2023 and 2022 attributed to on account of investment in Property, Plant & Equipment.

Cash Flows from Financing Activities

Net cash from financing activities for Period ended November 30, 2024 was at Rs. 871.78 lakhs due increased borrowings. Net cash from financing activities for the fiscal 2024, 2023 and 2022 was NIL as the company was bootstrapped.

OTHER MATTERS

1. Unusual or infrequent events or transactions

Except as described in this Draft 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 "Financial Information" and chapter titled "Managements Discussion and Analysis of Financial Conditions and Results of Operations", beginning on page 163 and 194 respectively of this Draft Red Herring Prospectus, to our knowledge there are no significant economic changes that materially affected or are likely to affect income from continuing Operations.

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

Other than as described in the chapter titled "Risk Factors" and "Managements Discussion and Analysis of Financial

Conditions and Result of Operations", beginning on page 23 and 194 respectively of this Draft Red Herring Prospectus, best 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.

4. Future relationship between Costs and Income

Other than as described in the chapter titled "Risk Factors" beginning on page 23 of this Draft Red Herring Prospectus, best 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.

5. Competition Conditions

Our Industry is fragmented consisting of large established players and small niche players. We compete with organized as well as unorganized sector on the basis of availability of product, price and product range. Further, there are no entry barriers in this industry. Industry is very competitive and we expect competition to continue and likely to increase in the future. We operate in a competitive environment. See "Risk Factors", "Industry Overview", "Our Business" and on page 23, 92 and 107, respectively, for further details on competitive conditions that we face across our various businesses