ABS Marine Services Ltd Management Discussions

You should read the following discussion and analysis of financial condition and results of operations together with our financial statements included in this Red Herring Prospectus. The following discussion relates to our Company and is based on our restated financial statements. Our financial statements have been prepared in accordance with Indian GAAP, the accounting standards and other applicable provisions of the Companies Act.

Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "Forward looking statement" 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 was originally incorporated as ‘ABS Marine Services Private Limited a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated October 27, 1992, issued by the Registrar of Companies, Tamil Nadu ("RoC"). Subsequently, the name of the company was changed from ABS marine Services Private Limited to ‘ABS Marine Services Limited, upon conversion into public company, pursuant to a special resolution passed by the shareholders of our Company on September 27, 2023, and a fresh certificate of incorporation consequent to conversion was issued by the RoC on October 23, 2023. Our Companys Corporate Identity Number is U71120TN1992PLC023705.

We have consistently grown in terms of our revenues over the past years. In the past three (3) years our revenues from operation were Rs.7,163.01 lakhs in F.Y.2021-22 , Rs. 11,157.51 lakhs in the FY 2022-23 and ? 13,515.68 lakhs in F.Y 2023-24. Our Net Profit after tax for the above-mentioned periods are Rs. 837.77 lakhs, Rs.1021.68 lakhs and ? 2541.19 lakhs respectively.

FINANCIAL KPIs OF THE COMPANY:

Particulars	For the year ended March 31
	2024	2023	2022
Revenue from Operations (? in Lakhs)	13,515.68	11,157.51	7,163.01
Growth in Revenue from Operations (%)	21.14%	55.77%	Nil
Total Income (? in Lakhs)	13,801.89	11,380.78	8,283.9
EBITDA (? in Lakhs)	4,467.33	3,030.13	3,096.97
EBITDA Margin (%)	33.05%	27.16%	43.24%
Profit After Tax (? in Lakhs)	2,541.19	1021.68	837.77
PAT Margin (%)	18.41%	8.98%	10.11%
ROE (%)	20.10%	10.19%	9.67%

*EBITDA Margin has been calculated as a percentage of revenue from operations and PAT Margin has been calculated as a percentage of Total Income.

*The above data is based on the basis of Consolidated Financial Statements

FACTORS AFFECTING OUR RESULT OF OPERATIONS

Except as otherwise stated in this Red Herring Prospectus and the Risk Factors given in the Red Herring Prospectus, the following important factors could cause actual results to differ materially from the expectations include, among others:

1. General economic and business conditions in the markets in which we operate and in the local, regional, national, and international economies;
2. Any change in government policies resulting in increases in taxes payable by us;
3. Increased competition in the industry in which we operate;
4. Ability to grow the business;
5. Changes in laws and regulations that apply to the industries in which we operate;
6. Companys ability to successfully implement its growth strategy and expansion plans;
7. Ability to keep pace with rapid changes in technology;
8. Ability to maintain relationships with domestic as well as foreign vendors.
9. Inability to successfully obtain registrations in a timely manner or at all;
10. General economic, political, and other risks that are out of our control;
11. Inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;
12. Any adverse outcome in the legal proceedings in which we are involved;
13. The performance of the financial markets in India and globally

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

1. Basis of preparation:

The financial statements have been prepared to comply in all material aspects with the Accounting Standards notified by the Companies (Accounting Standards) Rules, 2021 referred to in Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and in accordance with the accounting principles generally accepted in India ("Indian GAAP). The Financial Statements have been consistently applied by the company and are consistent with those used in the previous year.

2. Basis of Consolidation:

The financial statements of the Group are consolidated on a line-by-line basis and intra-group balances and transactions, including unrealized gain / loss from such transactions, are eliminated upon consolidation. These financial statements are prepared by applying uniform accounting policies in use at the Group. Minority interests which represent part of the net profit or loss and net assets of subsidiaries that are not, directly or indirectly, owned or controlled by the Company, are disclosed separately.

The consolidated financials include the following Joint Venture & Subsidiaries:

1. Epsom Shipping India Private Limited
2. ABS Marine Singapore PTE Ltd.
3. Seachart Shipping Private Limited (Sold in FY 23-24)

3. Revenue recognition:

Revenue is primarily derived from Ship Operation and Ship Management services.

1. Time charter earnings are recognised on accrual basis.
2. Revenues from supply of Ship Management services are recognised on rendering of the service based on rate charges as per the terms of the agreements.
3. Rental Income is recognised on accrual basis as per the terms and condition of the agreement.
4. Interest Income from deposits is recognised on a time proportion basis taking into account, the amount outstanding and the rate applicable.
5. Dividend income is recognised only when the right to receive the payment is established.
6. Sale of fuel and related products is recognized once dispached and the significant risks and rewards associated with ownership gets transferred to the buyer or in accordance with the terms of sales.
7. Interest on Income tax refund is recognised on receipt of refund order.
8. Claims receivable on account of Insurance are accounted for to the extent the Company is reasonably certain of its ultimate collection.

3. Property Plant and Equipment including Intangible assets:

Property Plant and Equipment and Intangible Assets are stated at cost of acquisition or construction or such other cost as may be added on account of revaluation, less accumulated depreciation, and impairment. The cost of acquisition or construction includes any attributable cost that is required to bring the asset to its working condition for its intended use. Subsequent expenditures related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance.

When assets are retired or otherwise disposed of, the cost of such assets and the related accumulated depreciation and impairment are removed from the accounts. Any profit or loss on retirement or other disposal is reflected in the Statement of Profit and Loss.

Intangible assets are recorded at consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.

4. Depreciation & Amortisation:

Depreciation on Fixed Assets is provided at written down value method in accordance with the useful life prescribed in Schedule II of the Companies Act, 2013. Where during any financial year, any addition has been made to any assets or where any asset has been sold, discarded, demolished, or destroyed, the depreciation on such asset is calculated on a pro rata basis from the date of such addition or up to the date on which such asset has been sold, discarded, demolished, or destroyed.

Individual low-cost assets (acquired for less than Rs. 5,000) are depreciated within a year of acquisition.

Intangible Assets are amortised over a period of 10 years on a straight-line basis, from the date such asset is put into use.

Useful life of Assets

Sl. No	Asset	Useful Life
1	Computer	3
2	Vehicle	8
3	Furniture and Fittings	10
4	Electrical Equipments	10
5	Office Equipment	15
6	Ships	20
7	Building	30
8	Intangible Assets	10

5. Impairment of assets:

The company assesses at each balance sheet date where there is any indication that an asset maybe impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If the recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs, is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and it is recognised in the Statement of Profit and Loss. If at the Balance Sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost and is accordingly reversed in the profit and loss account.

6. Use of estimates:

The preparation of Consolidate financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the year presented. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Actual results could differ from these estimates. Difference between the

actual results and estimates are recognised in the period in which the results are known / materialised. Any revision in the accounting estimate is recognised prospectively in the current and future periods.

7. Foreign currency transactions:

Transactions in foreign currency are recorded at the rates prevailing at the date of transaction. Foreign currency monetary items are reported using the closing rates, i.e., exchange rate at the Balance Sheet date. Any income or expense on account of exchange difference either on translation or on settlement, are recognised as income or expenses in the period in which they arise. Exchange differences arising on reporting of long-term foreign currency monetary items at rates different from those at which they were initially recorded during the period relate to the acquisition of a depreciable capital asset, has been added to the cost of the asset and shall be depreciated over the balance useful life of the asset.

Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of transaction.

8. Employee Benefits:

a) Short - term employee benefits:

Leave encashment:

The leave encashment liability upon retirement would not arise as the accumulated leave is reimbursed every year and accounted at actual.

B Post-Employment benefits:

Defined benefit plan:

The company deposits the contributions for provident funds to the Seamans Provident Fund and these contributions are recognised in the Statement of Profit and Loss in the financial year to which they relate.

9. Taxes on Income:

1. Current Tax:

Provision for current tax is made in accordance with the provisions of the Income Tax Act, 1961.

2. Deferred Tax:

Deferred tax is recognised, subject to the consideration of prudence, as the tax effect of timing difference between the taxable income and accounting income computed for the current accounting year using the tax rates and tax laws that have been enacted or substantially enacted by the balance sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty, except arising from unabsorbed depreciation and carried forward losses, that sufficient future taxable income will be available against which such deferred tax assets can be realised.

3. Provisions and Contingent Liabilities:

Provisions involving a substantial degree of estimation in measurement are recognised when there is present obligation as a result of past events and it is probable there will be an outflow of resources. Provisions are determined based on management estimates required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimate. Contingent liabilities are not recognised but are disclosed in the financial statements. Contingent assets are neither recognised nor disclosed in the financial statements.

4. Earnings Per Share:

Basic Earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity

shares. The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed converted as at the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

5. Operating Lease:

Lease arrangements where, the risks and rewards incidental to the ownership of an asset substantially vests with the company are recognised as Finance Lease and are capitalized at the fair value of the asset or the present value of the minimum lease payment at the inception of the lease, whichever is lower.

Lease payments under Operating Leases are expensed in the Statement of Profit and Loss on a straight-line basis with reference to lease terms and other consideration.

6. Cash and Cash Equivalents:

The Companys cash and cash equivalents consist of cash on hand and in banks and demand deposits with banks, which can be withdrawn at any time, without prior notice or penalty on the principal. For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand, in banks and demand deposits with banks, net of outstanding bank overs that are repayable on demand and are considered part of the Companys cash management system. In the balance sheet, bank overs are presented under borrowings within current liabilities.

7. Cash Flow Statement:

The company is following the indirect method for reporting Cash Flows from Operating activities whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts and item of income of expenses associated with investing or financing cash flow.

Cash flows arising from operating, investing and financing activities are reported on net basis. Cash and cash equivalents comprise of cash on hand, balances with bank and deposits with bank. All highly liquid investments with a remaining maturity of three months or less at the date of purchase and those that are readily convertible to cash are considered to be cash equivalents.

8. Investments:

Long term investments are stated at cost. Diminution in the value of investments other than temporary in nature is provided for.

Current Investments are stated at cost or fair value, whichever is lower.

Cost of overseas investments comprises the Indian Rupee value of the consideration paid for the investments, translated at the exchange rate prevalent at the date of investment.

Particulars	For the year ended 31st March, 2024 (? in lakhs) (Consolidated)	% of Total**	For the year ended 31st March, 2023 (? in lakhs) (Consolidated)	% of Total**	For the year ended 31st March, 2022 (? in lakhs) (Consolidated)	% of Total**
INCOME
Revenue from Operations	13,515.68	97.93%	11,157.51	98.04%	7,163.01	86.47%
Other Income	286.22	2.07%	223.27	1.96%	1,120.97	13.53%
Total Revenue (A)	13801.90	100.00%	11,380.78	100.00%	8,283.98	100.00%
EXPENDITURE
Direct Expenses	7,787.38	56.42%	7,387.33	64.91%	4,160.00	50.22%
Employee Benefit Expenses	623.27	4.52%	631.27	5.55%	566.67	6.84%
Finance Costs	483.81	3.51%	474.97	4.17%	450.25	5.44%
Depreciation and Amortization expense	1,351.23	9.79%	1,327.17	11.66%	1,625.26	19.62%
Admin & Other Expenses	923.92	6.69%	332.05	2.92%	460.34	5.56%
Total Expenses (B)	11169.61	80.93%	10,152.79	89.21%	7,262.52	87.67%
Profit/(Loss) before Tax	2632.28	19.07%	1227.99	10.79%	1021.46	12.33%
Tax Expense/ (benefit)

(a) Current Tax Expense	801.64	5.81%	304.69	2.68%	110.68	1.34%
(b) Deferred Tax	(710.55)	-5.15%	(98.38)	-0.86%	73.00	0.88%
Net tax expense / (benefit)	91.09	0.66%	206.31	1.81%	183.68	2.22%
Profit/(Loss) for the year	2541.19	18.41%	1021.68	8.98%	837.77	10.11%
Minoritys share of interest	185.78	1.35%	68.94	0.61%	28.34	0.34%
Profit/(Loss) for the Period	2,355.41	17.07%	952.74	8.37%	809.43	9.77%

**Total refers to Total Revenue

Components of our Profit and Loss Account

Income

Our total income comprises of revenue from operations and other income.

Revenue from Operations

Our revenue from operation mainly arises from Ship Management Services and Charter Hire Services. The Revenue from operations as a percentage of our total income was 97.93%, 98.04%, and 86.47% for Financial Years ended March 31, 2024, March 31, 2023, and March 31, 2022 respectively.

(Amount ? in lacs)

Particulars	For the year ended March 31, 2024	For the year ended March 31, 2023	For the year ended March 31, 2022
Sale of Services:
Local	13,410.49	9,604.54	7,163.01
Sale of fuel	-	1,520.58
Victualling Income	105.19	32.39	-
Total	13,515.68	11,157.51	7,163.01

Other Income

Our other Income consists of Interest Income, Dividend Income, Victualling Income, Profit on Sale of PPE, Profit on Sale of Investments, Foreign Exchange Fluctuations.

(Amount ? in lacs)

Particulars	For the year ended March 31, 2024	For the year ended March 31, 2023	For the year ended March 31, 2022
Profit on sale of PPE	77.63	40.29	133.28
	-	2.06	2.66
Interest Income	10.66	107.23	79.24
Profit on sale of Investments		36.78	-
Gratuity Reversal	2.02
Rent Received	0.10
Dividend Income	184.63	-	901.77
Interest Income on IT Refund	2.59	4.22	4.02
Reimbursement income		19.43	-
Discount received	8.59	-	-
		13.27	-
Foreign Exchange Fluctuation (Net)	286.22	223.27	1,120.97
Miscellaneous Income	77.63	40.29	133.28
Total	-	2.06	2.66

Expenditure

Our total expenditure primarily consists of Direct Expenses, employee benefit expenses, finance costs, Depreciation and Admin & Other Expenses.

Direct Expenses

Our direct expenses comprise of Travelling and Conveyance, Charter Hire Charges, Labour Charges, Ship Crew Officers Remuneration, Ship Running and Maintenance, Victualling Expenses.

Employee Benefit Expenses

Our employee benefits expense comprises of Salaries and wages, Contribution to Provident fund, Provision for Gratuity.

Finance costs

Our Finance cost expenses comprises of Interest Expenses & other borrowing costs.

Admin & Other Expenses

Other expenses primarily include Payment to Auditors, Business Promotion Expenses, Insurance Expenses, Repairs to Computer, Foreign Exchange Loss, Communication Expenses, Miscellaneous Expenses, Printing and Stationery, Rates and Taxes, Boarding, Lodging and Travelling Expenses, Rent, Donation, Professional charges, Power and fuel, Computer & Vehicle Maintenance.

(Amount ? in lakhs)

Particulars	For the year ended March 31, 2024	For the year ended March 31,2023	For the year ended March 31, 2022
Boarding, Lodging and Travelling Expenses	11.83	8.09	9.20
Rates and Taxes	12.55	8.03	17.00
Communication Expenses	79.96	59.07	56.60
Insurance Expenses	23.13	14.92	16.29
Foreign Exchange Loss	12.70	-	20.51
Computer & Vehicle Maintenance	43.16	23.55	8.71
Repairs to Computer	13.52	4.16	15.74
Professional charges	8.54	7.95	5.57
Power and fuel	39.23	10.03	15.66
Payment to Auditors (Refer Note Below)	304.93	-	-
Rent	34.39	66.66	37.59
Printing and Stationery	7.12	5.64	5.58
Business Promotion Expenses	1.76	1.00	0.19
Miscellaneous Expenses	287.51	82.61	101.97
Donation	7.27	11.34	17.90
Loss on sale of PPE	6.35	-	-
CSR expenses	29.97	21.38	19.98
Asset Written off	-	7.62	111.85
Total	923.92	332.05	460.34

Provision for Tax

The provision for current taxation is computed in accordance with relevant tax regulation. Deferred tax is recognized on timing differences between the accounting and the taxable income for the year and quantified using the tax rates and laws enacted or subsequently enacted as on balance sheet date. Deferred tax assets are recognized and carried forward to the extent that there is a virtual certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized in future.

For the Period ended March 31^st 2024

Income

The total income of our company for the year ended March 31st, 2024 was ? 13,801.90 lacs.

Expenditure Direct Expenses

For the year ended March 31st, 2024, our Company incurred cost for direct expenses ? 7,787.38 lacs.

Employee Benefit Expenses

For the year ended March 31st, 2024, our Company incurred for employee benefit expenses ? 623.27 lacs.

Finance Costs

The finance costs for the year ended March 31st, 2024 was ? 483.81 lacs.

Depreciation and Amortization expense

The Depreciation and Amortization expense for the year ended March 31st, 2024 was ? 1,351.23 lacs.

Admin & Other Expenses

For the year ended March 31st, 2024, our other expenses were ? 923.92 lacs.

Profit/ (Loss) before Tax

Our Company had reported a profit before tax for the year ended March 31st, 2024 of ? 2,632.28 lacs.

Profit/(Loss) for the year

Our Company had reported a profit before minority Interest for the year ended March 31st, 2024 of ? 2,541.19 lacs.

Fiscal 2024 compared with fiscal 2023

Income

The total income of our company for fiscal year 2024 was ? 13,801.90 lacs against ? 11,380.78 lacs total income for Fiscal year 2023. An increase 21.27% in total income. This increase was due to increased revenue on account of additional contracts and revision in contract rates.

Expenditure Direct Expenses

In Fiscal 2024, our direct expenses were ?7,787.38 lacs against ?7,387.33 lacs direct expenses in fiscal 2023. An increase of 5.42%. This increase was due to increase in revenue and overall business.

Employee Benefit Expenses

In Fiscal 2024, our Company incurred for employee benefit expenses ? 623.27 lacs against ? 631.27 lacs expenses in fiscal 2023. A decrease of 1.27%. This is the normal acceptable range of movement across years. Further, the incremental revenue was due to increase in rates and hence did not mandate further deployment of personnel.

Finance Costs

The finance costs for the Fiscal 2024 was ?483.81 lacs while it was ?474.97 lacs for Fiscal 2023.An increase of 1.86% was due to an additional Working Capital loan taken during the year.

Other Expenses

In fiscal 2024, our other expenses were ?923.92 lacs and ?332.05 lacs in fiscal 2023. An increase of 178.25% was due to loss on sale of Plant Property and Equipment and increased business operations.

Profit/ (Loss) before Tax

Our Company had reported a profit before tax for the Fiscal 2024 of ? 2,632.28 lacs against profit before tax of

?1,227.99 lacs in Fiscal 2023. An increase of 114.36%. This increase is in line with the discussions provided above, due to loss on sale of a ship incurred during the year and increase in overall business.

Profit/(Loss) for the year

Our Company had reported a profit after tax for the Fiscal 2024 of ? 2,541.19 lacs against profit before tax of

?1,021.68 lacs in Fiscal 2023. An increase of 148.73%. This was due to increase in overall business and efficiency demonstrated by the company in controlling costs.

Fiscal 2023 compared with fiscal 2022

Income

The total income of our company for fiscal year 2023 was ?11,380.78 lacs against ? 8,283.98 lacs total income for Fiscal year 2022. An increase 37.38% in total income. This increase was due to revision in contracts for Charter Hire Charges and sale of fuel, which is ancillary to our operations.

Expenditure Direct Expenses

In Fiscal 2023, our direct expenses were ?7,387.33 lacs against ?4,160.00 lacs direct expenses in fiscal 2022. An increase of 77.58%. This increase was due to purchase of fuel, which is ancillary to our operations, increase in Ship Running and Maintenance Charges, Ship Crew Officers Remuneration, Charter Hire Charges, which are all in line with the increased revenue from operations.

Employee Benefit Expenses

In Fiscal 2023, our Company incurred for employee benefit expenses ? 631.27 lacs against ? 566.67 lacs expenses in fiscal 2022. An increase of 11.40%. This increase was due to increase in number of employees to meet the growth in revenue.

Finance Costs

The finance costs for the Fiscal 2023 was ?474.97 lacs while it was ?450.25 lacs for Fiscal 2022.An increase of 5.94% was due to an additional 2 commercial loans for improvements on the vessels owned by us.

Other Expenses

In fiscal 2023, our other expenses were ?332.05 lacs and ?460.34 lacs in fiscal 2022. This decrease of 27.87% was due to due to a write off of an asset in Fiscal 2022.

Profit/ (Loss) before Tax

Our Company had reported a profit before tax for the Fiscal 2023 of ?1,227.99 lacs against profit before tax of

?1,021.46 lacs in Fiscal 2022.An increase of 20.22%. This increase is in line with the discussions provided above, due to a revision in contracts which has increased the profitability of our company.

Profit/(Loss) for the year

Our Company had reported a profit after tax for the Fiscal 2023 of ?1,021.68 lacs against profit before tax of ?

837.77 lacs in Fiscal 2022. An increase of 21.95%. This was due to an increase in profit in Fiscal 2023 when compared to Fiscal 2022.

Cash Flows

(Amount ? in lakhs)

Particulars	For the year ended March 31, (Consolidated)
	2024	2023	2022
Net Cash from Operating Activities	1,155.66	464.95	1,517.70
Net Cash from Investing Activities	(1,517.79)	1,941.21	1,470.03
Net Cash used in Financing Activities	(782.14)	(1,723.44)	(2,897.55)

Cash Flows from Operating Activities

1. For the year ended March 31, 2024, net cash used in for operating activities was ? 1,155.66 Lakhs. This comprised of the profit before tax of ? 2,632.28 Lakhs, which was primarily adjusted for depreciation and amortization expenses of ? 1,351.23 Lakhs and Interest cost of ? 483.81 Lakhs. The resultant operating profit before working capital changes was ? 4,500.30 Lakhs, which was primarily adjusted for an increase in trade receivables during the year of ? 784.61 Lakhs, short term loans and advances of ? 686.93 Lakhs, long term loans and advances of ? 90.56 Lakhs, and decrease in trade payables ? 1,193.70 Lakhs, other non- current assets of ?

297.87 Lakhs and other current liabilities ? 435.94 Lakhs.

Cash Generated from Operations was ? 1,606.44 Lakhs which was reduced by Direct Tax paid for ? (450.78) Lakhs resulting into Net cash flow generated from operating activities of ? 1,155.66 Lakhs.

2. In FY 2023, net cash used in for operating activities was ? 464.95 Lakhs. This comprised of the profit before tax of ? 1,227.99 Lakhs, which was primarily adjusted for depreciation and amortization expenses of ?1,327.17 Lakhs and Interest cost of ? 474.97 Lakhs. The resultant operating profit before working capital changes was ? 2,936.29 Lakhs, which was primarily adjusted for an increase in trade receivables during the year of ? 1,154.82 Lakhs, other non- current assets of ? 2,353.88 Lakhs, short term loans and advances of ? 210.18 Lakhs, long term loans and advances of ? 0.50 Lakhs, trade payables ?791.47 Lakhs and other current liabilities ?276.52 Lakhs.

Cash Generated from Operations was ? 287.89 Lakhs which was reduced by Direct Tax paid for ? 177.05 Lakhs resulting into Net cash flow generated from operating activities of ? 464.95 Lakhs.

3. In FY 2022, net cash used in for operating activities was ? 1,517.70 Lakhs. This comprised of the profit before tax of ? 1,021.46 Lakhs, which was primarily adjusted for depreciation and amortization expenses of ?1,625.26 Lakhs and Interest cost of ? 450.25 Lakhs. The resultant operating profit before working capital changes was ? 2,104.48 Lakhs, which was primarily adjusted for an increase in trade payables ?36.97 Lakhs, other non- current assets of ? 62.14 Lakhs, long term loans and advances of ? 868.73 Lakhs, and decrease in short term loans and advances of ? 33.10 Lakhs, other current liabilities ? 5.68 Lakhs and trade receivables during the year of ? 278.48 Lakhs.

Cash Generated from Operations was ? 1,517.44 Lakhs which was reduced by Direct Tax paid for ? 0.21 Lakhs resulting into Net cash flow generated from operating activities of ? 1517.70 Lakhs.

Cash Flows from Investment Activities

1. For the year ended March 31, 2024, net cash used in investing activities was ? (1,517.79) Lakhs, which primarily comprised of cash used for the purchase of property, plant, and equipment of ? 1,275.06 Lakhs, Sale of property, plant, and equipment of ? 209.84 Lakhs, purchase of Investments of ? 521.85 Lakhs.
2. In FY 2023, net cash used in investing activities was ? 1,941.21 Lakhs, which primarily comprised of cash used for the purchase of property, plant, and equipment of ? 773.71 Lakhs, purchase of Investments of ? 272.50 Lakhs and sale of Investments of ? 2,929.03 Lakhs.
3. In FY 2022, net cash used in investing activities was ? 1,470.03 Lakhs, which primarily comprised of cash used for the purchase of property, plant, and equipment of ? 743.03 Lakhs, Sale of property, plant, and equipment of ? 2,808.80 Lakhs, purchase of Investments of ? 4,635.92 Lakhs and sale of Investments of ? 2,896.61 Lakhs..

Cash Flows from Financing Activities

1. For the year ended March 31, 2024, net cash generated from financing activities was ? (782.14) Lakhs, which predominantly comprised of decrease in short term borrowings of ? 82.87 Lakhs, long term borrowings of ?

215.45 Lakhs and Interest cost paid of ? 483.81 Lakhs.

2. In FY 2023, net cash generated from financing activities was ? (1,723.44) Lakhs, which predominantly comprised of Increase in short term borrowings of ? 281.20 Lakhs, decrease in long term borrowings of ? 1,529.67 Lakhs and Interest cost paid of ? 474.97 Lakhs.
3. In FY 2022, net cash generated from financing activities was ? (2,897.55) Lakhs, which predominantly comprised of decrease in short term borrowings of ? 380.74 Lakhs, long term borrowings of ? 2,066.56 Lakhs and Interest cost paid of ? 450.25 Lakhs.

OTHER MATTERS

1. Unusual or infrequent events or transactions

Except COVID-19 or any such kind of pandemic and as described in this Red Herring Prospectus, there have been no other events or transactions to the best of our knowledge which may be described as "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 195 and 164 respectively of this 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

Apart from the risks as disclosed under Chapter titled "Risk Factors" beginning on page no. 29 in this Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

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

Our Companys future costs and revenues will be determined by demand/supply situation, both of the end products/services as well as the raw materials, government policies and other economic factors.

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

Increases in revenues are by and large linked to increases in volume of business and also dependent on the price realization on our products/services.

6. Total turnover of each major industry segment in which the issuer company operated.

Relevant Industry data and, as available, has been included in the chapter titled "Industry Overview" beginning on page no. 102 of this Red Herring Prospectus.

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

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

8. The extent to which business is seasonal.

Our business does not depend to a certain extent on the seasonal, environmental and climate changes. Hence, our business is not seasonal in nature.

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

Our business is dependent on few clients. Our top five customers contributed 88.71 %, 87.99 %, 73.95%% and 92.88% of total revenue from operations for year ending 31 March, 2024, 2023 and 2022 respectively. However, it is pertinent to note that contracts with these customers are long-term contracts ranging from 3- 5 years.

10. Competitive conditions:

We face competition from existing and potential competitors which is common for any business. We have, over a period, developed certain competitors who have been discussed in chapter titles "Business Overview" beginning on page no. 111 of this Red Herring Prospectus