Australian Premium Solar (India) Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS

You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in the Draft Red Herring Prospectus. You should also read the section entitled "Risk Factors" beginning on page 25, which discusses several factors, risks and contingencies that could affect our financial condition and results of operations. The following discussion relates to our Company and is based on our restated financial statements, which have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI Regulations. Portions of the following discussion are also based on internally prepared statistical information and on other sources. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year ("Fiscal Year") are to the twelve-month period ended March 31 of that year.

The financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated which is included in this Draft Red Herring Prospectus under the section titled "Restated Financial Information" beginning on page 158 of this Draft Red Herring Prospectus. The restated financial statements have been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. We do not provide a reconciliation of our restated financial statements to US GAAP or IFRS and we have not otherwise quantified or identified the impact of the differences between Indian GAAP and

U.S. GAAP or IFRS as applied to our restated financial statements.

This discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those described under "Risk Factors" and "Forward Looking Statements" beginning on pages 25 and 14 respectively, and elsewhere in this Draft Red Herring Prospectus Accordingly, the degree to which the financial statements in this Draft Red Herring Prospectus will provide meaningful information depend entirely on such potential investors level of familiarity with Indian accounting practices. Please also refer to section titled "Presentation of Financial, Industry and Market data" beginning on page 12 of this Draft Red Herring Prospectus.

BUSINESS OVERVIEW

Our Company was originally incorporated as "Australian Solar Panel (India) Private Limited" as a private limited company under the provisions of the Companies Act, 1956 vide Certificate of Incorporation dated May 23, 2013 issued by Registrar of Companies, Gujarat, Dadra and Nagar Haveli. Subsequently, the name of our company was changed from "Australian Solar Panel (India) Private Limited" to "Australian Premium Solar (India) Private Limited", pursuant to a special resolution passed by our Shareholders in the Extra-Ordinary General Meeting held on November 27, 2013, vide Certificate of Incorporation dated November 28, 2013, issued by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli. Further, our Company was converted from a private limited company to public limited company pursuant to special resolution passed in the Extra-Ordinary General Meeting of the company dated July 24, 2023 and consequently, the name of our Company was changed from "Australian Solar Panel (India) Private Limited" to "Australian Premium Solar (India) Limited" and a fresh certificate of incorporation dated August 03, 2023 was issued to our Company by the Registrar of Companies, Ahmedabad. The Corporate Identification Number of our Company is U40300GJ2013PLC075244.

Australian Premium Solar (India) Limited is one of the recognised brands in the solar industry, which is in the business of manufacturing of Monocrystalline and Polycrystalline Solar Panels and Engineering, procurement, and construction ("EPC") services thereof. The Company has modern manufacturing facility at Tajpur, Sabarkantha, Gujarat that helps in delivering quality and latest technology products in the industry. The products manufactured by the Company are used in residential, agricultural and commercial installations.

Our Promoters, Mr. Chimanbhai Ranchhodbhai Patel and Mrs. Savitaben Chimanlal Patel are associated with our company since incorporation. While one of our current promoters Mr. Nikunj Chimanlal Patel acquired the shares from then existing shareholders in year 2017. Back in 2012, our promoters recognized the potential of solar energy market in India and incorporated this company in order to perceive the untapped potential of harnessing this boundless renewable resource. As solar technology gradually gained momentum and recognition, the foresight of our promoter began to manifest in a tangible and impactful manner. Our promoter has combined experience of more than twenty five years in solar industry. With their enriching experience and progressive thinking, we aim to continue to grow in this industry.

Our company is primarily engaged in the manufacturing of Solar Panels and EPC Services of solar systems. The industry term for solar panel is PV Module (Photovoltaic Module) which refers to setup for generating electricity from sunlight, using semiconductor materials in devices called photovoltaic cells or solar cells. Currently in the solar panel segment, we manufacture both monocrystalline and polycrystalline solar panels at our manufacturing facility spread across in 25,375 square meters, located at Sabarkantha, Gujarat having capacity of 200 MW per annum.

We manufacture two types of solar panels: (i) Monocrystalline Solar Panel; and (ii) Polycrystalline Solar Panel. The difference between both lies in their integral raw material i.e., solar cell. Solar cell is typically made of semiconductor

materials such as silicon wafers and it is an integral part of any solar powered device. In Monocrystalline Panels, solar cells are typically more efficient and have a darker, uniform appearance due to their single-crystal structure allowing for bus bars (Copper coated thin strip) to be placed more strategically without significant visual impact. On the other hand, Polycrystalline solar cells have a blue or speckled appearance due to their multiple crystal structures, bus bars may need to be positioned to accommodate the less uniform appearance of these cells.

We also provide installation services for solar panels and solar pumps. We undertake installation services under this segment for household and industrial end users, while also provide solar pump installation services for agricultural end users which enable us to supply our manufactured solar panels along with solar pumps. Till August 31, 2023, we have served more than 10,000 unique customers towards installation of solar modules out of which more than 9500 has been roof top installation for residential use and more than 1300 solar pumps installation for agricultural use.

We are certified with ISO 9001: 2015 by M/s. OSS Certification Services Private Limited for Quality Management System demonstrating we are an organization which delivers quality products and services to its end users, having direct relationship with reputation, customer satisfaction and long-term success.

Our Core business can be divided in following categories:

1. Manufacturing of solar panels
2. EPC Services:
1. Installation Services for Solar Rooftop
2. Installation of Solar Pumps

FINANCIAL KPIs OF COMPANY

The financial performance of the company for last three years as per restated financial Statement:

(? In Lakh)

Particulars	For the Period ended on
	31-Mar-23	31-Mar-22	31-Mar-21
Revenue from Operations (? in Lakhs)	9,455.92	9,812.13	7,416.24
Growth in Revenue from Operations (%)	-3.63%	32.31%
EBITDA (? in Lakhs)	582.76	515.45	352.60
EBITDA Margin (%)	6.16%	5.25%	4.75%
Profit After Tax (? in Lakhs)	333.43	270.48	180.11
PAT Margin (%)	3.53%	2.76%	2.43%
RoE (%)	26.05%	27.60%	23.77%
RoCE (%)	36.15%	37.45%	34.50%
Net Fixed Asset Turnover (In Times)	13.93	13.38	11.57
Operating Cash Flows (? in Lakhs)	253.20	267.30	504.50

OUR BUSINESS MODEL

For our internal purpose, we have classified our business into three segments:

Following is an overview of our business verticals:

1. Manufacturing of Solar Panels

Under this vertical, we procure Solar Cells from domestic market and process them at our manufacturing facility into Solar modules. This is the core business of the company and majority revenue is derived from this segment only. We sell manufactured solar modules to the customers for residential, commercial and agricultural purposes as required by the customer.

2. EPC Services-

Our Company, beyond manufacturing, provides comprehensive installation services that bring the benefits of solar energy directly to our customers. Our team handles every aspect of the installation process starting from design and planning related concerns to delivery and installation of solar module to residential and commercial users. We tailor each installation to the unique needs and specifications of our clients. Under this segment, we provide installation services for rooftop solar and solar pump:

1. Installation Services for rooftop solar: We provide installation services for Rooftop solar for residential and commercial usage. Our team provide on-grid rooftop installation services to the customers as per the locational requirement in order to maximize the harvesting of energy.
2. Installation Services for solar pump: Under this segment, we provide installation services for solar pump across country. Solar pump consists of submersible pump and solar modules along with other necessary spare parts. We procure the solar pumps from various manufacturers and install the same along with self- manufactured solar modules, as per client requirements.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO LAST AUDITED BALANCE SHEET:

After the date of last Audited accounts i.e. March 31, 2023, the Directors of our Company confirm that, there have not been any significant material developments except mentioned below;

Note:

• Authorised capital of the company was increased from ? 5.00 Lakhs to ? 2000.00 Lakhs divided into 2,00,00,000 equity shares of ? 10 each.
• Company was converted into a public limited company pursuant to a special resolution passed by our Shareholders at an Extra-Ordinary General Meeting held on July 24, 2023 and consequently the name of our Company was changed to ‘Australian Premium Solar (India) Limited.
• On June 16, 2023 our company has allotted 1,45,20,000 Bonus Equity Shares in the ratio of 726:1 i.e. for every Equity Share held, 726 Bonus Equity Shares.
• Board of Directors of the Company has approved in their meeting held on August 12, 2023 issue of 5200000 equity shares as Initial Public Offer which was subsequently approved by members of the company in the extraordinary general meeting held on August 14, 2023.
• Company has placed order for Purchase of Machineries and Technical Services (For Object of the Issue for which Funds are being raised under Proposed Issue) having estimated amount of ? 1,310.06 Lakhs, out of which ? 186.65 Lakhs has been paid by the Company up to September 08, 2023.

Our Companys future results of operations could be affected potentially by the following factors:

• COVID-19 Pandemic;
• Natural Calamities e.g. Tsunami
• Global GDP growth and seaborne trade growth
• Prevailing commercial freight rates;
• The cost of building new vessels compared to the cost of purchasing and/or repairing existing vessels;
• Changes in laws or regulations
• Political Stability of the Country;
• Competition from existing players;
• Our dependence on limited number of customers/suppliers/brands for a significant portion of our revenues;
• Any failure to comply with the financial and restrictive covenants under our financing arrangements;
• Failure to obtain any applicable approvals, licenses, registrations and permits in a timely manner;
• Failure to adapt to the changing technology in our industry of operation may adversely affect our business and financial condition;
• Occurrence of Environmental Problems & Uninsured Losses;
• Conflicts of interest with affiliated companies, the promoter group and other related parties;
• The performance of the financial markets in India and globally;
• Our ability to expand our geographical area of operation;
• Concentration of ownership among our Promoters.

For Significant accounting policies please refer Significant Accounting Policies and Notes to accounts, "Annexure D" beginning under Chapter titled "Restated Financial Information" beginning on page 158 of this Draft Red Herring Prospectus.

The following table sets forth detailed total income data from our restated consolidated statement of profit and loss for the Financial Years 2023, 2022 and 2021, the components of which are also expressed as a percentage increase from previous year and also percentage of total revenue from operations for such years.

(? In Lakh)

Particular	Year end on
	31.03.2023	31.03.2022	31.03.2021
Revenue from operations	9,455.92	9,812.13	7,416.24
Total Revenue from Operation	9,455.92	9,812.13	7,416.24
% of growth	-3.63%	32.31%	Not Applicable
Other Income	39.94	20.79	27.73
% of growth	92.11%	-25.04%	Not Applicable

Particular	Year end on
	31.03.2023	31.03.2022	31.03.2021
Total Income	9,495.86	9,832.92	7,443.97
% of growth	-3.43%	32.09%	Not Applicable
Expenses
Cost of Material Consumed	7605.35	7868.02	6065.00
% of growth	-3.34%	29.73%	Not Applicable
Change in Inventories of Finished Goods	149.14	44.27	(159.48)
% of growth	236.92%	127.76%	Not Applicable
Employee benefits expense	382.21	377.74	291.16
% Increase/(Decrease)	1.18%	29.74%	Not Applicable
Finance Costs	40.68	29.43	25.53
% Increase/(Decrease)	38.23%	15.27%	Not Applicable
Depreciation and amortization expenses	129.71	140.95	113.61
% Increase/(Decrease)	-7.97%	24.06%	Not Applicable
Other expenses	736.46	1,006.66	866.96
% Increase/(Decrease)	-26.84%	16.11%	Not Applicable
Total Expenses	9,043.55	9,467.06	7,202.78
% to Total Income	95.24%	96.28%	96.76%
Profit/(Loss) Before Extra-Ordinary Items and Tax	452.31	365.86	241.19
% to Total Income	4.76%	3.72%	3.24%
Exceptional Items	-	-	-
Profit before Tax	452.31	365.86	241.19
Total tax expense	118.88	95.38	61.08
Profit and Loss after tax for the Year as Restated	333.43	270.48	180.11
% to Total Income	3.51%	2.75%	2.42%
Profit and Loss for the Year as Restated	333.43	270.48	180.11
% Increase/(Decrease)	23.27%	50.18%	Not Applicable

COMPARISON OF FY 2022-23 WITH FY 2021-22: REVENUE:

Revenue from operations

Our company is primarily engaged in the manufacturing of Solar Panels and installation of solar panels and solar modules. The industry term for solar panel is PV Module (Photovoltaic Module) which refers to setup for generating electricity from sunlight, using semiconductor materials in devices called photovoltaic cells or solar cells. Currently in the solar panel segment, we manufacture both monocrystalline and polycrystalline solar panels. The Total Revenue from operations for the year ended on FY 2022-23 was ? 9,455.92 Lakh as compared to ? 9,812.13 Lakh during the FY 2021-22. Revenue from Operations mainly includes revenue from sale of products and services from 2 segments namely Manufacturing of Solar Panels and Installation services. Revenue from operations decreased by 3.63% from previous year i.e. FY 2021-22. Revenue from Manufacturing of Solar Panels constitutes 67.71%, Installation Services for Solar rooftop constitutes 28.51% and Revenue from Installation Services for Solar pump constitutes 3.77% of total revenue from operations from domestic market. Following are the segment wise bifurcation of Revenue from Operations.

Particulars of Revenue Segment wise (Amt. in ? Lakhs)

Particulars	For the year ended 31st March, 2023	Percentage	For the year ended 31st March, 2022	Percentage
Manufacturing of Solar Panels	6,403.04	67.71%	3,233.94	32.96%
Installation Services for Solar rooftop	2,696.08	28.51%	6,448.77	65.72%
Installation Services for Solar pump	356.79	3.77%	129.42	1.32%
Total	9,455.92	100.00%	9,812.13	100.00%

Particulars of Revenue Geographic wise (Amt. in ? Lakhs)

State / Country	For the year ended 31st March, 2023	Percentage	For the year ended 31st March, 2022	Percentage
Domestic Sales	9,455.92	100.00	9,812.13	100.00
Himachal Pradesh	147.42	1.56	-	0.00
Punjab	3.44	0.04	9.14	0.09
Chandigarh	10.93	0.12	7.09	0.07
Haryana	106.10	1.12	117.65	1.20
Delhi	3.23	0.03	0.95	0.01
Rajasthan	504.64	5.34	282.24	2.88
Uttar Pradesh	6.47	0.07	6.74	0.07
Bihar	2.47	0.03	24.71	0.25
Assam	2.77	0.03	-	0.00
West Bengal	2.31	0.02	6.09	0.06
Jharkhand	44.10	0.47	19.75	0.20
Odisha	19.66	0.21	14.52	0.15
Chhattisgarh	-	0.00	0.12	0.00
Madhya Pradesh	95.08	1.01	3.87	0.04
Gujarat	6,735.10	71.23	9,171.01	93.47
Maharashtra	1,763.95	18.65	125.45	1.28
Karnataka	-	0.00	2.14	0.02
Kerala	0.94	0.01	20.66	0.21
Tamil Nadu	7.31	0.08	-	0.00
Telangana	-	0.00	-	0.00
Andhra Pradesh	-	0.00	-	0.00
Export Sales	-	0.00	-	0.00
Total	9,455.92	100.00	9,812.13	100.00

Other Income:

Other income of the company was ? 39.94 lakhs and ? 20.79 lakhs for FY 2022-23 and FY 2021-22 respectively. Other Income mainly includes interest income, Foreign exchange gain/loss and other miscellaneous income.

EXPENDITURE:

Cost of Material Consumed

Our Cost of Material Consumed decreased by 3.34% from ? 7868.02 lakhs in FY 2021-22 to ? 7605.35 lakhs in FY 2022-

23. Cost of Material Consumed decreased in line with Revenue from operation. Cost of Material Consumed mainly includes Purchase of Products and Change in Inventory of Raw Material.

Changes in inventories of finished goods

Our opening stock of finished goods was ? 357.51 lakhs as at April 1, 2022, while it was ? 401.78 lakhs as at April 1, 2021. Our closing stock of finished goods was ? 208.37 lakhs as at March 31, 2023, while it was ? 357.51 lakhs as at March 31, 2022, The changes in inventories of finished goods increased to ? 149.14 lakhs in FY 2022-23 from ? 44.27 lakhs in FY 2021-22 was primarily in proportion with the growth in our Companys business in FY 2022-23.

Employee Benefit Expenses

Employee Benefit expenses increased to ? 382.21 lakhs in FY 2022-23 from ? 377.74 lakhs in FY 2021-22 showing an increase of 1.18%. Employee Benefit Expenses mainly includes salary and wages, staff welfare expenses, gratuity expenses, contribution to provident fund and other funds.

Finance Cost

Finance expense were ? 40.68 lakhs in FY 2022-23 as against ? 29.43 lakhs in FY 2021-22 showing increase of 38.23% Finance costs include interest expense on Long term borrowings and Bank Charges & Commission. Increase in finance cost is on account of increase in bank charges and commission.

Depreciation and Amortization

The Depreciation and amortization expense for FY 2022-23 was ? 129.71 lakh as against ? 140.95 lakhs for FY 2021-22. Depreciation represents depreciation on our Machineries and Equipment, furniture and fixtures, vehicles, computer and accessories and Production Facility.

Other Expenses

Other Expenses decreased to ? 736.46 lakhs in FY 2022-23 from ? 1,006.66 lakhs in FY 2021-22 showing an decrease of 26.84%. Other expense mainly includes Solar System, Meter Installation and Site Expenses, Repairs & Maintenance expense on Building and Machinery, power & fuel expense, office expenses, Production Expenses, Freight & Transport Expenses, commission charges, office expense, legal & professional fees, sundry balance written off, Travelling & Conveyance Charges, Advertisement Expenses and misc. expenses. Other expense decreased mainly on account of decrease in Commission Expenses, Freight & Transport Expenses and Solar System, Meter Installation and Site Expenses.

Profit before Extra-Ordinary Items and Tax

The Profit before Extra-Ordinary Items and Tax for the FY 2022-23 was 4.76% of the total income and it was 3.72% of total income for the FY 2021-22. The Profit before Extra-Ordinary Items and Tax has increased to ? 452.31 lakhs in FY 2022-23 from ? 365.86 lakhs in FY 2021-22.

Profit after Tax (PAT)

PAT increased to ? 333.43 lakhs in FY 2022-23 from ? 270.48 lakhs in the FY 2021-22. PAT was 3.51% and 2.75% of Total Income of our company for the year ended on March 31, 2023 and March 31, 2022 respectively.

COMPARISON OF FY 2021-22 WITH FY 2020-21: REVENUE:

Revenue from operations

Our company is primarily engaged in the manufacturing of Solar Panels and installation of solar panels and solar modules. The industry term for solar panel is PV Module (Photovoltaic Module) which refers to setup for generating electricity from sunlight, using semiconductor materials in devices called photovoltaic cells or solar cells. Currently in the solar panel segment, we manufacture both monocrystalline and polycrystalline solar panels. The Total Revenue from operations for the year ended on FY 2021-22 was ? 9,812.13 Lakh as compared to ? 7,416.24 Lakh during the FY 2020-21. Revenue from Operations mainly includes revenue from sale of products and services from 2 segments namely Manufacturing of Solar Panels and Installation services. Revenue from operations increased by 32.31% from previous year i.e. FY 2020-21. Income from Operations increased mainly on account of growth driven by increase in Installation Services for solar rooftop. Revenue from Manufacturing of Solar Panels constitutes 32.96%, Installation Services for Solar rooftop constitutes 65.72% and Revenue from Installation Services for Solar pump constitutes 1.32% of total revenue from operations from domestic market. Following are the segment wise bifurcation of Revenue from Operations.

Particulars of Revenue Segment wise (Amt. in ? Lakhs)

Particulars	For the year ended 31st March, 2022	Percentage	For the year ended 31st March, 2021	Percentage
Manufacturing of Solar Panels	3,233.94	32.96%	3,945.23	53.20%
Installation Services for Solar rooftop	6,448.77	65.72%	3,438.27	46.36%
Installation Services for Solar pump	129.42	1.32%	32.74	0.44%
Total	9,812.13	100.00%	7,416.24	100.00%

Particulars of Revenue Geographic wise (Amt. in ? Lakhs)

State / Country	For the year ended 31st March, 2022	Percentage	For the year ended 31st March, 2021	Percentage
Domestic Sales	9,812.13	100.00	7,381.63	99.53
Himachal Pradesh	-	0.00	-	0.00
Punjab	9.14	0.09	1.56	0.02
Chandigarh	7.09	0.07	-	0.00
Haryana	117.65	1.20	6.80	0.09
Delhi	0.95	0.01	2.25	0.03
Rajasthan	282.24	2.88	191.57	2.58
Uttar Pradesh	6.74	0.07	63.53	0.86
Bihar	24.71	0.25	-	0.00

Particulars of Revenue Geographic wise (Amt. in ? Lakhs)

State / Country	For the year ended 31st March, 2022	Percentage	For the year ended 31st March, 2021	Percentage
Assam	-	0.00	-	0.00
West Bengal	6.09	0.06	18.91	0.26
Jharkhand	19.75	0.20	60.52	0.82
Odisha	14.52	0.15	-	0.00
Chhattisgarh	0.12	0.00	-	0.00
Madhya Pradesh	3.87	0.04	-	0.00
Gujarat	9,171.01	93.47	6,816.45	91.91
Maharashtra	125.45	1.28	141.16	1.90
Karnataka	2.14	0.02	15.13	0.20
Kerala	20.66	0.21	48.74	0.66
Tamil Nadu	-	0.00	-	0.00
Telangana	-	0.00	0.48	0.01
Andhra Pradesh	-	0.00	14.56	0.20
Export Sales	-	0.00	34.61	0.47
USA	-	0.00	34.61	0.47
Total	9,812.13	100.00	7,416.24	100.00

Other Income:

Other income of the company was ? 20.79 lakhs and ? 27.73 lakhs for FY 2021-22 and FY 2020-21 respectively. Other Income mainly includes interest income, foreign exchange gain/loss and other miscellaneous income.

EXPENDITURE:

Cost of Material Consumed

Our Cost of Material Consumed increased by 29.73% from ? 6065.00 lakhs in FY 2020-21 to ? 7868.02 lakhs in FY 2021-

22. Cost of Material Consumed increased in line with Revenue from operation. Cost of Material Consumed mainly includes Purchase of Products and Change in Inventory of Raw Material.

Changes in inventories of finished goods

Our opening stock of finished goods was ? 401.78 lakhs as at April 1, 2021, while it was ? 242.30 lakhs as at April 1, 2020. Our closing stock of finished goods was ? 357.51 lakhs as at March 31, 2022, while it was ? 401.78 lakhs as at March 31, 2021, The changes in inventories of finished goods increased to ? 44.27 lakhs in FY 2021-22 from ? (159.48) lakhs in FY 2020-21 was primarily in proportion with the growth in our Companys business in FY 2021-22.

Employee Benefit Expenses

Employee Benefit expenses increased to ? 377.74 lakhs in FY 2021-22 from ? 291.16 lakhs in FY 2020-21 showing an increase of 29.74%. Employee Benefit Expenses mainly includes salary and wages, remuneration to directors, staff welfare expenses, gratuity expenses, contribution to provident fund and other funds.

Finance Cost

Finance expense were ? 29.43 lakhs in FY 2021-22 as against ? 25.53 lakhs in FY 2020-21 showing increase of 15.27%. Finance costs include interest expense on Long term borrowings and Bank Charges & Commission.

Depreciation and Amortization

The Depreciation and amortization expense for FY 2021-22 was ? 140.95 lakhs as against ? 113.61 lakhs for FY 2020-21. Depreciation represents depreciation on our Machineries and Equipment, furniture and fixtures, vehicles, computer and accessories and Production Facility.

Other Expenses

Other Expenses increased to ? 1,006.66 lakhs in FY 2021-22 from ? 866.96 lakhs in FY 2020-21 showing an increase of 16.11%. Other expense mainly includes Solar System, Meter Installation and Site Expenses, Repairs & Maintenance expense on Building and Machinery, power & fuel expense, office expenses, Production Expenses, Freight & Transport Expenses, commission charges, office expense, legal & professional fees, sundry balance written off, Travelling &

Conveyance Charges, Advertisement Expenses and misc. expenses. Other expense increased mainly on account of increase in Commission Expenses and Solar System, Meter Installation and Site Expenses.

Profit before Extra-Ordinary Items and Tax

The Profit before Extra-Ordinary Items and Tax for the FY 2021-22 was 3.72% of the total income and it was 3.24% of total income for the FY 2020-21. The Profit before Extra-Ordinary Items and Tax has increased to ? 365.86 lakhs in FY 2021-22 from ? 241.19 lakhs in FY 2020-21.

Profit after Tax (PAT)

PAT increased to ? 270.48 lakhs in FY 2021-22 from ? 180.11 lakhs in the FY 2020-21. PAT was 2.75% and 2.42% of Total Income of our company for the year ended on March 31, 2022 and March 31, 2021 respectively.

For further information please refer "Annexure – J - Related Party Transaction" under section "Restated Financial Information" beginning from page no. 158 of this Draft Red Herring Prospectus.

We are exposed to financial market risks from changes in borrowing costs, interest rates and inflation.

We are currently exposed to interest rate risks to the extent of outstanding loans. However, any rise in future borrowings may increase the risk.

We are affected by inflation as it has an impact on the operating cost, staff costs etc. In line with changing inflation rates,

we rework our margins so as to absorb the inflationary impact.

1. Unusual or infrequent events or transactions

Except as described in this Draft 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.

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 no. 25 of the Draft Red Herring Prospectus. To our knowledge, except as we have described in the Draft Red Herring Prospectus, there are no known factors which we expect to bring about significant economic changes.

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

Apart from the risks as disclosed under Section titled "Risk Factors" beginning on page no. 25 in 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.

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.

Our company is primarily engaged in the manufacturing of Solar Panels and installation of solar panels and solar modules. The industry term for solar panel is PV Module (Photovoltaic Module) which refers to setup for generating electricity from sunlight, using semiconductor materials in devices called photovoltaic cells or solar cells. Currently in the solar panel segment, we manufacture both monocrystalline and polycrystalline solar panels. 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.

Our company is primarily engaged in the manufacturing of Solar Panels and installation of solar panels and solar modules. The industry term for solar panel is PV Module (Photovoltaic Module) which refers to setup for generating electricity from sunlight, using semiconductor materials in devices called photovoltaic cells or solar cells. Currently in the solar panel segment, we manufacture both monocrystalline and polycrystalline solar panels. Relevant Industry data, as available, has been included in the chapter titled "Industry Overview" beginning on page no. 97 of this Draft Red Herring Prospectus.

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

Our company is primarily engaged in the manufacturing of Solar Panels and installation of solar panels and solar modules. The industry term for solar panel is PV Module (Photovoltaic Module) which refers to setup for generating electricity from sunlight, using semiconductor materials in devices called photovoltaic cells or solar cells. Currently in the solar panel segment, we manufacture both monocrystalline and polycrystalline solar panels. Except as disclosed elsewhere in the Draft Red Herring Prospectus, we have not announced and do not expect to announce in the near future any new products or business segments.

8. The extent to which business is seasonal.

Our company is primarily engaged in the manufacturing of Solar Panels and installation of solar panels and solar modules. The industry term for solar panel is PV Module (Photovoltaic Module) which refers to setup for generating electricity from sunlight, using semiconductor materials in devices called photovoltaic cells or solar cells. Currently in the solar panel segment, we manufacture both monocrystalline and polycrystalline solar panels. Our Companys business is not seasonal in nature.

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

The percentage of contribution of our Companys customer vis-?-vis the total revenue from operations respectively as on FY 2023, 2022 and 2021 is as follows:

Particulars	Top Customers as a percentage (%) of revenues
	FY 2022-23	FY 2021-22	FY 2020-21
Top 1	12.41%	3.35%	4.84%
Top 3	23.71%	8.42%	13.02%
Top 5	31.67%	11.26%	17.10%
Top 10	44.65%	17.44%	24.40%

The % of contribution of our Companys supplier vis-?-vis the total revenue from operations respectively as on FY 2023, 2022 and 2021 is as follows:

Particulars	Top Suppliers as a percentage (%) of revenues
	FY 2022-23	FY 2021-22	FY 2020-21
Top 1	26.52%	17.43%	17.15%
Top 3	43.02%	35.89%	37.40%
Top 5	54.67%	50.86%	47.23%
Top 10	72.51%	74.53%	64.43%

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 section titles "Business Overview" beginning on page no. 112 of this Draft Red Herring Prospectus.

CAPITALIZATION STATEMENT

(? In Lakhs)

Sr. No	Particulars	Pre issue	Post issue
	Debts
A	Long Term Debt*	110.11	110.11
B	Short Term Debt*	112.02	112.02
C	Total Debt	222.13	222.13
	Equity Shareholders Funds
	Equity Share Capital#	2.00	[?]
	Reserves and Surplus	1,444.62	[?]
D	Total Equity	1,446.62	[?]
	Long Term Debt/ Equity Ratio (A/D)	0.08	[?]
	Total Debt/ Equity Ratio (C/D)	0.15	[?]

1. Short-term borrowings implies borrowings repayable within 12 months from the Balance Sheet date and also includes the current maturities of long-term borrowings. Long-term borrowings are debts other than short-term borrowings.
2. The above ratios have been computed on the basis of the Restated Summary Statement of Assets and Liabilities of the Company.
3. The figures disclosed above are based on restated statement of Assets and Liabilities of the Company as at March 31, 2023.
4. Company has allotted 1,45,20,000 Bonus Equity Shares on June 16, 2023 in the ratio of 726:1 i.e. for every 1 equity share 726 bonus equity shares were issued as bonus shares.