Digikore Studios Ltd Management Discussions

OF FINANCIAL CONDITION AND RESULTS OF OPERATION

The following discussion of our financial condition and results of operations should be read in conjunction with our restated financial statements for the period June 30, 2023 and financial year ended March 31, 2023, March 31, 2022 and March 31, 2021 prepared in accordance with the Companies Act, 2013 (to the extent notified) and

/or Provisions of Companies Act, 1956 w.r.t. the sections which have not yet been replaced by the Companies Act, 2013 through any official notification and Indian GAAP and restated in accordance with the SEBI ICDR Regulations, including the schedules, annexure and notes thereto and the reports thereon, included in "Restated Financial Statements" beginning on page 132 of this Red Herring Prospectus.

Indian GAAP differs in certain material respects from U.S. GAAP and IFRS. We have not attempted to quantify the impact of IFRS or U.S. GAAP on the financial data included in this Red Herring Prospectus, nor do we provide a reconciliation of our financial statements to those under U.S. GAAP or IFRS. Accordingly, the degree to which the Indian GAAP financial statements included in this Red Herring Prospectus will provide meaningful information is entirely dependent on the readers level of familiarity with the Companies Act, Indian GAAP and the SEBI ICDR Regulations.

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 set forth in "Risk Factors" and "Forward-Looking Statements" beginning on pages 21 and 15 respectively, of this Red Herring Prospectus

COMPANY OVERVIEW

Our Company was incorporated on July 25, 2000 as a private limited company under the provisions of Companies Act, 1956 with the Registrar of Companies, Pune in the name and style of "Digikore Studios Private Limited. Subsequently, our Company was converted into Public Limited company pursuant to which the name of our Company was changed to "Digikore Studios Limited" vide shareholders approval on September 28, 2001 and fresh certificate of incorporation dated January 16, 2002 issued by Registrar of Companies. Mumbai. Subsequently, our Company was converted into Private Limited company pursuant to which the name of our Company was changed to "Digikore Studios Private Limited" vide shareholders approval on September 24, 2013 and fresh certificate of incorporation dated November 01, 2013 issued by Registrar of Companies, Mumbai. Subsequently, our Company was converted into Public Limited company pursuant to which the name of our Company was changed to "Digikore Studios Limited" vide shareholders approval on April 25, 2023 and fresh certificate of incorporation dated May 22, 2023 issued by Registrar of Companies, Pune.

BUSINESS OVERVIEW

Digikore serves as a hub for top-tier industry talent. Having production facility in India, we specialize in delivering Visual Effects (VFX) for a diverse range of projects such as Films, Web Series, TV Series, Documentaries, and Commercials, all while maintaining a strong emphasis on cost-effectiveness. Our reputation as a world-class VFX studio is a result of our harmonious blend of imaginative creativity and cutting-edge technology.

Digikore was established by Mr. Abhishek Rameshkumar More in the year 2000. In its initial years, Digikore made its mark in the realm of Animation and Visual Effects (VFX). Worked with extensive portfolio of many Films and TV Series, notable works include projects like "Thor: Love and Thunder," "Black Panther: Wakanda Forever," "Glass Onion: A Knives Out Mystery," "Deadpool," "Star Trek," "Jumanji," "Stranger Things," "The Last Ship," "Titanic" "Gosht Rider: Spirit of Vengeance" "Transformer: Age of Extinction" "Crouching Tiger, Hidden Dragon: Sword of Destiny" and many more prestigious productions.

As a TPN-audited VFX studio, we offer a comprehensive suite of visual effects services, overseen by our experienced production team. Our artists harness the power of the latest software, hardware, and proprietary tools to produce exceptional VFX for some of the most prominent Films, Web Series, and TV Series.

SIGNIFICANT 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 21 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

• Failure, defects, delays and other problems involving the technology systems and infrastructure on which we rely for providing our services and solutions to our clients;

• loss of consumers;
• Failure to comply with quality standards may lead to cancellation of existing and future orders;

• Uncertainty in relation to effect of any pandemic on our business and operations;

• Our dependence on our key personnel, including our Directors and senior management;

• Our ability to successfully implement our business strategy and plans;

• General economic and business conditions in the markets in which we operate and in the local, regional, national and international economies;

• Changes in political and social conditions in India, the monetary and interest rate policies of India and other countries;

• Changes in government policies and regulatory actions that apply to or affect our business;

• Inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;

• The performance of the financial markets in India and globally;

• The occurrence of natural disasters or calamities;

• Other factors beyond our control;

• Our ability to manage risks that arise from these factors.

DISCUSSION ON RESULT OF OPERATION ON STANDALONE BASIS

The following discussion on results of operations should be read in conjunction with the restated standalone financial results of our Company for period ended June 30, 2023 and for years ended March 31, 2023, 2022 and 2021.

OVERVIEW OF REVENUE & EXPENDITURE

Revenues

Our Companys revenue is primarily generated from Sale of products & Services:-

(Rs. In Lakhs)

Particulars	As on June 2023	As at March 31
		2023	2022	2021
Income
Revenue from Operations	1,182.68	3,443.98	2,488.18	487.32
Increase/Decrease in %	-65.66%	38.41%	410.58%	-
Other Income	0.31	111.85	0.21	128.21
Increase/Decrease in %	-99.72%	53160.86%	-99.84%	-
Total Revenue	1,182.99	3,555.83	2,488.39	615.53

The following is the Income mix in terms of value of total income of our Company from Services:-

(Rs. In Lakhs)

Particulars	As on June 2023	As at March 31
		2023	2022	2021
Revenue from Operation
Sale of Services	1,182.68	3,429.50	2,488.18	487.32
- VFX Services	935.82	3,333.32	1,244.76	-
- Comics Sales	25.99	81.99	91.24	-
- Advertising Sales	4.37	9.53	-	-
- Sponsorship Fees	107.00
- Participation Fees	22.50
- Other Sales	87.00	4.66	1,152.19	-
Other Operating Income	-	14.48	-	-
Total Revenue from Operation	1,182.68	3,443.98	2,488.18	487.32

The following is the Income mix in terms of value of total other income of our Company from Services:-

(Rs. In Lakhs)

Particulars	As on June 2023	As at March 31
		2023	2022	2021
Revenue from Operation
Sale of Services	99.97%	96.45%	99.99%	79.17%
- VFX Services	79.11%	93.74%	50.02%	0.00%
- Comics Sales	2.20%	2.31%	3.67%	0.00%
- Advertising Sales	0.37%	0.27%	0.00%	0.00%
- Sponsorship Fees	9.04%	0.00%	0.00%	0.00%
- Participation Fees	1.90%	0.00%	0.00%	0.00%
- Other Sales	7.35%	0.13%	46.30%	0.00%
Other Operating Income	0.00%	0.41%	0.00%	0.00%
Total Revenue from Operation	99.97%	96.85%	99.99%	79.17%

Other Income

(Rs. In Lakhs)

Particulars	As on June 2023	As at March 31
		2023	2022	2021
Other Income:
Dividend Income	-	0.05	0.05	-
Net Gain On Sale Of Current Investments	-	0.11	-	-
Profit On Sale Of Tenancy Rights	-	103.35	-	-
Foreign Exchange Gain (Net)	-	3.16	-	-
Other Non-Operating Income	0.31	5.18	0.16	128.21
Total Other Income	0.31	111.85	0.21	128.21

The following is the other income mix in terms of percentage of other income of our Company:

(Rs. In Lakhs)

Particulars	As on June 2023	As at March 31
		2023	2022	2021
Other Income:
Dividend Income	0.00%	0.04%	23.81%	0.00%
Net Gain On Sale Of Current Investments	0.00%	0.10%	0.00%	0.00%
Profit On Sale Of Tenancy Rights	0.00%	92.40%	0.00%	0.00%
Foreign Exchange Gain (Net)	0.00%	2.83%	0.00%	0.00%
Other Non-Operating Income	100.00%	4.63%	76.19%	100.00%
Total Other Income	100.00%	100.00%	100.00%	100.00%

Main Components of our Revenues

Income

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

Revenue from Operations

Revenue from Operations includes income from Sales of services and Other Operating income. Sales of Services as a percentage of total revenue was 96.85%, 99.99% and 79.17% in fiscals 2023, 2022 and 2021 respectively.

Other Income

Our other income includes Dividend Income, Net Gain on sale of Current Investments, Profit on sales of current investments, profit from sales of tenancy rights, foreign exchange gain/loss and other non-operating income and Other income, as a percentage of total income was 3.15%, 0.01% and 26.31% in fiscals 2023, 2022 and 2021 respectively.

Expenditure

Our total expenditure primarily consists of (i) Cost of Technical Subcontractors (ii) Employee Benefit Expenses

(iii) Finance costs (iv)Depreciation and Amortization and (v) Other expenses

The following table sets forth our expenditure in Rupees and as a percentage of our total revenue for the periods indicated:

(Rs. in Lakhs)

Particulars	As on June 2023	For The Year Ended March 31
		2023	2022	2021
EXPENDITURE
Cost of Technical Subcontractors	112.93	735.22	1,235.92	230.54
As a % of Total Revenue	9.55%	20.68%	49.67%	37.45%
Employee Benefit Expenses	375.34	1,165.23	539.49	162.55
As a % of Total Revenue	31.73%	32.77%	21.68%	26.41%
Finance costs	38.01	71.47	39.89	73.20
As a % of Total Revenue	3.21%	2.01%	1.60%	11.89%
Depreciation and Amortization	18.86	103.80	91.89	25.72
As a % of Total Revenue	1.59%	2.92%	3.69%	4.18%
Other expenses	254.24	907.30	476.80	120.90
As a % of Total Revenue	21.49%	25.52%	19.16%	19.64%
Total Expenditure	799.38	2,983.02	2,383.99	612.91
As a % of Total Revenue	67.57%	83.89%	95.80%	99.57%

Main Components of our Expenditure

Cost of Technical Subcontractors

Cost of Technical Subcontractors, accounted for 20.68%, 49.67% and 37.45% of our total revenue for the financial year ended as on March 31, 2023, 2022 and 2021 respectively.

Employee Benefit Expenses

Expenses in relation to employees remuneration and benefits include Salaries, wages and bonus, Contribution to provident and other funds, Gratuity & leave encashment expense and Staff welfare expenses. Total employee expenses as percent of total revenue was 32.77%, 21.68% and 26.41% for the financial year ended as on March 31, 2023, 2022 and 2021 respectively.

Finance Cost

Finance Cost primarily consists of interest expenses on borrowings Amortization of ancillary borrowing costs. Our finance costs accounted for 2.01%, 1.60% and 11.89% of our total revenue for the financial year ended as on March 31, 2023, 2022 and 2021 respectively.

Depreciation & Amortization

Depreciation primarily consists of depreciation on the tangible assets of our Company which primarily includes Plant & Machinery, Furniture & Fixtures, Electrical fittings, Vehicles, computers, office equipments and Amortization is on intangible assets of our company. It is provided using the written down method as per the useful lives of assets estimated by the management or at the rates as per the useful life prescribed under Schedule II of the Companies Act, 2013.Our depreciation and amortization expense accounted for 2.92%, 3.69% and 4.18% of our total revenue for the financial year ended as on March 31, 2023, 2022 and 2021 respectively.

Other Expenses

Other expenses primarily include Rent, Legal and Professional Fees, Business Promotion, Travelling and Conveyance, Repairs and Maintenance and others. Other expenses accounted etc. accounted for 25.52%, 19.16% and 19.64% of our total revenue for the financial year ended as on March 31, 2023, 2022 and 2021 respectively.

Statement of profits and losses

The following table sets forth, for the fiscal years indicated, certain items derived from our Companys audited restated summary financial statements, in each case stated in absolute terms and as a percentage of total sales and/or total revenue.

(Rs. in Lakhs)

Particulars	As on June 2023	For The Year Ended March 31
		2023	2022	2021
INCOME
Revenue from Operations
Revenue	1,182.68	3,443.98	2,488.18	487.32
As a % of Total Revenue	99.97%	96.85%	99.99%	79.17%
Increase/Decrease in %	-65.66%	38.41%	410.58%	NA
Other Income	0.31	111.85	0.21	128.21
As a % of Total Revenue	0.03%	3.15%	0.01%	20.83%
Increase/Decrease in %	-99.72%	53160.86%	-99.84%	NA
Total Revenue	1,182.99	3,555.83	2,488.39	615.53
EXPENDITURE
Cost of Technical Subcontractors	112.93	735.22	1,235.92	230.54
As a % of Total Revenue	9.55%	20.68%	49.67%	37.45%
Employee Benefit Expenses	375.34	1,165.23	539.49	162.55
As a % of Total Revenue	31.73%	32.77%	21.68%	26.41%
Finance costs	38.01	71.47	39.89	73.20
As a % of Total Revenue	3.21%	2.01%	1.60%	11.89%
Depreciation and Amortization	18.86	103.80	91.89	25.72
As a % of Total Revenue	1.59%	2.92%	3.69%	4.18%
Other expenses	254.24	907.30	476.80	120.90
As a % of Total Revenue	21.49%	25.52%	19.16%	19.64%
Total Expenditure	799.38	2,983.02	2,383.99	612.91
As a % of Total Revenue	67.57%	83.89%	95.80%	99.57%
Profit Before Exceptional Items and Tax	383.61	572.81	104.40	2.62
As a % of Total Revenue	32.43%	16.11%	4.20%	0.43%
Exceptional Items	-	-	-	-
As a % of Total Revenue	0.00%	0.00%	0.00%	0.00%
Extraordinary Items	-	-	-	-
As a % of Total Revenue	0.00%	0.00%	0.00%	0.00%

 

Profit Before tax	383.61	572.81	104.40	2.62
PBT Margin (%)	32.43%	16.11%	4.20%	0.43%
Tax expense :
(a) Current tax	103.96	168.36	57.86	0.82
(c) Deferred Tax	-	(33.01)	-	-
Total	103.96	135.35	57.86	0.82
As a % of Total Revenue	8.79%	3.81%	2.33%	0.13%
Profit After Tax	279.65	437.46	46.54	1.80
Less: Profit/(Loss) attributable to minority interest	-	-	-	-
Profit/(Loss) for the Year	279.65	437.46	46.54	1.80
PAT Margin (%)	23.64%	12.30%	1.87%	0.29%
Cash Profit	298.51	541.26	138.43	27.52
Cash Profit Margin (%)	25.23%	15.22%	5.56%	4.47%

Provision for Tax

Income taxes are accounted for in accordance with Accounting Standard – 22 on "Accounting for Taxes on Income" ("AS-22"), prescribed under the Companies (Accounting Standards) Rules, 2006. Our Company provides for current tax as well as deferred tax, as applicable.

Provision for current taxes is made at the current tax rates after taking into consideration the benefits available to our Company under the provisions of the Income Tax Act, 1961.

Deferred tax arises from the timing differences between book profits and taxable profits that originate in one period and are capable of reversal in one or more subsequent periods and is measured using the tax rates and laws applicable as of the date of the financial statements. Our Company provides for deferred tax asset / liability on such timing differences subject to prudent considerations in respect of deferred tax assets.

The following table presents the details of our Companys trade receivables:

(Rs. in Lakhs)

Particulars	As on June 2023	As at March 31
		2023	2022	2021
Unsecured and Considered Good
Outstanding for a period not exceeding 6 months	1,023.43	591.01	139.49	280.62
As a % of total Trade receivables	99.25%	98.71%	100.00%	100.00%
Outstanding for a period exceeding 6 months	7.71	7.71	-	-
As a % of total Trade receivables	0.75%	1.29%	0.00%	0.00%
Less: Provision for doubtful debts	-	-	-	-
Unbilled Debtors Considered Good	-	-	-	-
As a % of total Trade receivables	0.00%	0.00%	0.00%	0.00%
Total Trade receivables	1,031.14	598.72	139.49	280.62
Trade receivables Turnover Ratio	1.15	5.94	17.84	2.19
Collection Period ( in days)	318	61	20	166

FOR THE PERIOD APRIL TO JUNE 2023

Income

Total revenue June quarter is reported at Rs 1,182.99 Lakhs of which Revenue from operations was 1,182.68 lakhs and Other Income contributed to Rs 0.31 Lakhs. Revenue from operations consists of Revenue from Sales of Services.

Expenditure

Total Expenditure reported for June quarter 2023 at Rs 799.38 Lakhs which is 67.57% of the total Revenue.

Cost of Technical Subcontractors

Cost of technical subcontractor is Rs 112.93 Lakhs which forms 9.55% of the total revenue compared to Rs

735.22 Lakhs in fiscal year 2022-23.

Employee Benefit Expenses

Employee Benefit Expenses in terms of value for June quarter is reported at Rs 375.34 Lakhs which is 31.73% of the total revenue for June 2023.

Finance Costs

Finance Costs for June quarter reported at Rs38.01 Lakhs which is 3.21% of the total revenue.

Depreciation and Amortization

Depreciation and Amortization in terms of value was reported at Rs18.86 lakhs which constituted to 1.59% of the total revenue. Mainly increased due to purchase of fixed assets.

Other Expenses

Other Expenses was reported at Rs 254.24 lakhs which constituted at 21.49% of the total revenue in quarter ended June 2023.

Profit/Loss before Tax

Profit before Tax for the June quarter reported at Rs. 383.60

Net Profit for the year

For the period ended June 2023, Net Profit reported at Rs 279.65 lakhs.

Income

Total revenue increased by Rs. 1067.44 Lakhs and 42.90% from Rs. 2,488.39 Lakhs in the fiscal year ended March 31, 2022 to Rs. 3,555.83 Lakhs in the fiscal year ended March 31, 2023. The revenue has increased due to increase in the sales of services and majorly by increase in revenue from VFX services from Rs 1,244.76 Lakhs in the fiscal year ended March 31, 2022 to Rs. 3,333.32 Lakhs in the fiscal year ended March 31, 2022.

Expenditure

Total Expenditure increased by Rs. 599.09 Lakhs and 25.13%, from Rs. 2,383.99 Lakhs in the fiscal year ended March 31, 2022 to Rs. 2,983.02 Lakhs in the fiscal year ended March 31, 2023. Overall expenditure increased majorly due to increase in Employee expenses, and other expenses due as compared to the previous year.

Cost of Technical Subcontractors

Expenses declined by Rs. 500.70 Lakhs and -40.51%, from Rs. 1,235.92 Lakhs in the fiscal year ended March 31, 2022 to Rs. 735.22 Lakhs in the fiscal year ended March 31, 2023.

Employee Benefit Expenses

Employee Benefit Expenses in terms of value and percentage increased by Rs. 625.74 Lakhs and 115.99% from Rs. 539.49 Lakhs in the fiscal year ended March 31, 2022 to Rs. 1,165.23 Lakhs in the fiscal year ended March 31, 2023. Employee cost has increased due to increase in head count and salary expenses.

Finance Costs

Finance Costs increased by Rs. 31.58 Lakhs and 79.16% from Rs. 39.89 Lakhs in the fiscal year ended March 31, 2022 to Rs. 71.47 Lakhs in the fiscal year ended March 31, 2023, due to increase in Long term and short term borrowings.

Depreciation and Amortization

Depreciation and Amortization in terms of value and percentage increased Rs11.91 lakh and by 12.96% from Rs. 91.89 Lakhs in the fiscal year ended March 31, 2022 to Rs. 103.80 Lakhs in the fiscal year ended March 31, 2023 mainly due to purchase of vehicle and furnitures & Fixtures.

Other Expenses

Other Expenses in terms of value and percentage increased Rs 430.50 lakh and by 90.29% from Rs. 476.80 Lakhs in the fiscal year ended March 31, 2022 to Rs. 907.30 Lakhs in the fiscal year ended March 31, 2023. Other Expenses have increased mainly due increase Rent, Repairs & maintenance, travelling expenses and Legal and Professional and Rent expenses.

Profit/Loss before exceptional & extraordinary items and Tax

Profit before exceptional & extraordinary items and Tax has increased by Rs. 468.41 Lakhs and 448.67% from Rs. 104.40 Lakhs in the fiscal year ended March 31, 2022 to Rs. 572.81 Lakhs in the fiscal year ended March 31, 2023. Profit before exceptional & extraordinary items and Tax has increased due to increase in revenue from operation and fall in total expenditure as percent of total revenue from 95.8% in fiscal year ended March 31, 2022 to 83.89% in fiscal year ended March 31, 2023.

Net Profit for the year

Net Profit has increased by Rs. 390.92 Lakhs and 839.97% from profit of Rs. 46.54 Lakhs in the fiscal year ended March 31, 2022 to Rs. 437.46 Lakhs in the fiscal year ended March 31, 2023.

Profit before Tax for FY23 was reported at Rs 572.81 Lakhs which has grown by 448.67% compared to Rs

104.40 Lakhs in FY22. And Margin stood at 16.11% compared to 4.20% in FY22.

Profit after tax has gone up by 839.97% to Rs 437.46 Lakhs compared to Rs 46.54 Lakhs in FY22.

Margins have increased due to overall operational efficiency and efficient cost management. As mentioned in Table A below, the major item of expenditures is cost of technical subcontractor and employee cost.

Cost of technical subcontractor declined by -40.51% to Rs 735.22 Lakhs in FY23 compared to Rs 1,235.92 lakhs in FY22. Also, as % of Total revenue it has declined from 49.67% in FY22 to 20.68% in FY23, which lead to saving in cost.

Total expenditure for FY23 has grown by 25.13% to Rs 2,983.02 Lakhs from Rs 2,383.99 Lakhs in FY22. However as % of Total Revenue it has declined to 83.89% in FY23 compared to 95.80% as percent of total revenue in FY22. This has led to the cost saving and increase in profitability. Refer Table A below

Table A

(Rs. in lakhs)

Particulars	For The Year Ended March 31
	2023	2022	2021
INCOME
Revenue from Operations
Revenue	3,443.98	2,488.18	487.32
As a % of Total Revenue	96.85%	99.99%	79.17%
Increase/Decrease in %	38.41%	410.58%	-
Other Income	111.85	0.21	128.21
As a % of Total Revenue	3.15%	0.01%	20.83%
Increase/Decrease in %	53160.86%	-99.84%	-
Total Revenue	3,555.83	2,488.39	615.53
EXPENDITURE
Cost of Technical Subcontractors	735.22	1,235.92	230.54
As a % of Total Revenue	20.68%	49.67%	37.45%
Changes in Inventories	-	-	-
As a % of Total Revenue	0.00%	0.00%	0.00%
Employee Benefit Expenses	1,165.23	539.49	162.55

 

As a % of Total Revenue	32.77%	21.68%	26.41%
Other Operating Expenses	-	-	-
As a % of Total Revenue	0.00%	0.00%	0.00%
Selling & Distribution Expenses	-	-	-
As a % of Total Revenue	0.00%	0.00%	0.00%
Finance costs	71.47	39.89	73.20
As a % of Total Revenue	2.01%	1.60%	11.89%
Depreciation and Amortization	103.80	91.89	25.72
As a % of Total Revenue	2.92%	3.69%	4.18%
Other expenses	907.30	476.80	120.90
As a % of Total Revenue	25.52%	19.16%	19.64%
Total Expenditure	2,983.02	2,383.99	612.91
As a % of Total Revenue	83.89%	95.80%	99.57%
Profit Before Exceptional Items and Tax	572.81	104.40	2.62
As a % of Total Revenue	16.11%	4.20%	0.43%
Exceptional Items	-	-	-
As a % of Total Revenue	0.00%	0.00%	0.00%
Extraordinary Items	-	-	-
As a % of Total Revenue	0.00%	0.00%	0.00%
Profit Before tax	572.81	104.40	2.62
PBT Margin (%)	16.11%	4.20%	0.43%
Tax expense :
(a) Current tax	168.36	57.86	0.82
(c) Deferred Tax	(33.01)	-	-
Total	135.35	57.86	0.82
As a % of Total Revenue	3.81%	2.33%	0.13%
Profit After Tax	437.46	46.54	1.80
Less: Profit/(Loss) attributable to minority interest	-	-	-
Profit/(Loss) for the Year	437.46	46.54	1.80
PAT Margin (%)	12.30%	1.87%	0.29%

Income

Total revenue increased by Rs. 1872.86 Lakhs and 304.27% from Rs. 615.53 Lakhs in the fiscal year ended March 31, 2021 to Rs. 2,488.39 Lakhs in the fiscal year ended March 31, 2022. Due to relaxation in covid norms and opening of global economy the revenue has increased due to increased majorly by increase in revenue from VFX services and other sales.

Significant increase in demand for online content, OTT and VFX services across the globe. In the same context, our company has reported the Total revenue of Rs 2,488.39 lakhs in FY22 compared to Rs 615.53 Lakhs in FY21 which has grown by 304.27% (refer Table A)

Revenue from operation consists of sales of services and other operating income. Sales of Services in FY22 was reported at Rs 2,488.18 lakhs compared to Rs 487.32 lakhs in FY21, which has grown by 410.58%. (refer Table B)

Due to increase in VFX projects under Sales from Services, company has reported revenue from VFX services has grown by 207.58% to Rs 1,277.76 Lakhs compared to Rs 404.70 Lakhs in FY21 which was covid period (refer Table C)

Also revenue from Other Sales includes revenue from trading of goodswhich have increased by 1,294.57% to Rs 1,152.19 Lakhs in FY22 compared to Rs 82.62 Lakhs in FY21. (refer Table C)

Table A

(Rs in Lakhs)

Total Revenue	FY23	FY22	FY21
Revenue from operations	3,443.98	2,488.18	487.32

 

Growth YoY	38.41%	410.58%	-
Other income	111.85	0.21	128.21
Growth YoY	53161.90%	-99.84%	-
Total Revenue	3,555.83	2,488.39	615.53
Growth YoY	42.90%	304.27%	-

Table B

(Rs in Lakhs)

Break up of Revenue from operations	FY23	FY22	FY21
Sale of services	3,429.50	2,488.18	487.32
Growth YoY	37.83%	410.58%	-
As % of Total Revenue	96.45%	99.99%	79.17%
Other operating revenue	14.48	0.00	0.00
Growth YoY	-	-	-
As % of Total Revenue	0.41%	0.00%	0.00%
Total	3,443.98	2,488.18	487.32
As % of Total Revenue	96.85%	99.99%	79.17%
Growth YoY	-3.14%	-	-

Table C

(Rs in Lakhs)

Detail of services rendered	FY23	FY22	FY21
VFX services	3,333.32	1,244.76	404.70
Growth YoY	167.79%	207.58%	-
Comics sales	81.99	91.24	-
Growth YoY	-10.14%	-	-
Advertising services	9.53	-	-
Growth YoY	-	-	-
Other sales	4.66	1,152.19	82.62
Growth YoY	-99.60%	1294.57%	-
Total	3,429.50	2,488.19	487.32
Growth YoY	37.83%	410.59%	-

Expenditure

Total Expenditure increased by Rs. 1,771.08Lakhs and 288.96%, from Rs. 612.91Lakhs in the fiscal year ended March 31, 2021 to Rs. 2,383.99Lakhs in the fiscal year ended March 31, 2022. Overall expenditure increased majorly due to increase in Cost of technical subcontracts, Employee expenses, and other expenses due as compared to the previous year.

Cost of Technical Subcontractors

Expenses increased by Rs. 1,005.38 Lakhs and 436.10%, from Rs. 230.54Lakhs in the fiscal year ended March 31, 2021 to Rs. 1,235.92Lakhs in the fiscal year ended March 31, 2022.

Employee Benefit Expenses

Employee Benefit Expenses in terms of value and percentage increased by Rs. 376.94 Lakhs and 231.89% from Rs. 162.55 Lakhs in the fiscal year ended March 31, 2021 to Rs. 539.49 Lakhs in the fiscal year ended March 31, 2022. Employee cost has increased due to increase in head count and salary expenses.

Finance Costs

Finance Costs declined by Rs. 33.31 Lakhs and -45.51% from Rs. 73.20 Lakhs in the fiscal year ended March 31, 2021 to Rs. 39.89 Lakhs in the fiscal year ended March 31, 2022, due to decrease in Long term and short term borrowings.

Depreciation and Amortization

Depreciation and Amortization in terms of value and percentage increased Rs 66.17 lakh and by 257.27% from Rs. 25.72 Lakhs in the fiscal year ended March 31, 2021 to Rs. 91.89 Lakhs in the fiscal year ended March 31, 2022 mainly due to purchase of vehicle and furnitures & Fixtures.

Other Expenses

Other Expenses in terms of value and percentage increasedRs355.90 lakh and by 294.38% from Rs. 120.90 Lakhs in the fiscal year ended March 31, 2021 to Rs. 476.80Lakhs in the fiscal year ended March 31, 2023. Other Expenses have increased mainly due increase Rent, Repairs & maintenance, travelling expenses and Legal and Professional and Rent expenses.

Profit/Loss before exceptional & extraordinary items and Tax

Profit before exceptional & extraordinary items and Tax has increased by Rs. 101.78 Lakhs and 3884.73% from Rs. 2.62 Lakhs in the fiscal year ended March 31, 2021 to Rs. 104.40 Lakhs in the fiscal year ended March 31, 2022. Profit before exceptional & extraordinary items and Tax has increased due to increase in revenue from operation and fall in total expenditure as percent of total revenue from 99.57% in fiscal year ended March 31, 2021 to 95.80% in fiscal year ended March 31, 2022.

Net Profit for the year

Net Profit has increased by Rs. 44.74 Lakhs and 2485.56% from profit of Rs. 1.80 Lakhs in the fiscal year ended March 31, 2021 to Rs. 46.54 Lakhs in the fiscal year ended March 31, 2022.

(Rs. In Lakhs)

Particulars	Year ended March 31,
	2023	2022	2021
Net Cash from Operating Activities	123.41	417.27	186.88
Net Cash from Investing Activities	(310.07)	(229.47)	(151.39)
Net Cash from Financial Activities	186.68	(189.20)	(35.38)

Cash Flows from Operating Activities

Net Cash Generated from Operating Activities for June 2023 reported at Rs -213.60, this was mainly due increase in receivables and other assets.

Net Cash Generated from Operating Activities in financial year 2023 wasRs123.41 lakhs as compared to Rs417.27 lakhs in financial year 2022. This was mainly on account of increase in payable and Profits from operations.

In the financial year 2022, it was Rs. 417.27 lakhs as compared toRs186.88 Lakhs in financial year 2021. This was mainly on account of increase in receivables and other current liabilities.

In the financial year 2021, Net Cash Generated from Operating Activities was Rs. 186.68, the cash flows were resulted from increase in trade payables and decrease in other current assets.

Cash Flows from Investment Activities

Net Cash Generated from Investing Activities for June 2023 reported at Rs -52.60 Lakhs due to expenditure on fixed assets.

In financial year 2023, the Net Cash Invested in Investing Activities was Rs. -310.07 lakhs. This was on account of capital expenditure to the extent of Rs 313.31 Lakhs.

In financial year 2022, the Net Cash Invested in Investing Activities was Rs. -229.47 lakhs. This was mainly on account of increase in capital expenditure to the extent of Rs229.42 Lakhs.

In financial year 2021, the Net Cash Invested in Investing Activities was Rs. -151.39 lakhs. This was mainly on account of increase in investment to the extent Rs142.00 Lakhs.

Cash Flows from Financing Activities

Net Cash from Financing Activities was reported at Rs 266.63 Lakhs, this was on account of proceeds from long term borrowings.

In financial year 2023, the Net Cash from Financing Activities was Rs. 186.68 lakhs. This was mainly on account net proceeds from short term borrowings to the extent of Rs193.05 Lakhs.

In financial year 2022, the Net Cash from Financing Activities was negative to the extent of Rs.189.20lakhs. Due to net repayment of Long term & short term borrowings to the extent of Rs125.33 Lakhs and Rs 23.98 Lakhs respectively.

In financial year 2021, the Net Cash from Financing Activities was negative to Rs.35.38 lakhs. Due repayment of long term borrowings and interest paid to the extent of Rs 33.51 Lakhs and Rs 73.20 Lakhs respectively.

DISCUSSION ON RESULT OF OPERATION ON CONSOLIDATED BASIS

The following discussion on results of operations should be read in conjunction with the restated consolidated financial results of our Company for period ended June 30, 2023 and for years ended March 31, 2023 and 2022.

OVERVIEW OF REVENUE & EXPENDITURE

Revenues

Our Companys revenue is primarily generated from Sale of products& Services:-

(Rs. In Lakhs)

Particulars	As on June 2023	As at March 31
		2023	2022
Income
Revenue from Operations	1,182.68	3,580.53	2,488.18
Increase/Decrease in %	-66.97%	43.90%	-
Other Income	3.81	111.85	0.21
Increase/Decrease in %	-96.59%	52411.50%	-
Total Revenue	1,186.49	3,692.38	2,488.39

The following is the Income mix in terms of value of total income of our Company from Services: -

(Rs. In Lakhs)

Particulars	As on June 2023	As at March 31
		2023	2022
Revenue from Operation
Sale of Services	1,182.68	3,566.05	2,488.18
- VFX Services	935.82	3,469.87	1,244.76
- Comics Sales	25.99	81.99	91.24
- Sponsorship Fees	107.00	-	-
- Advertising Sales	4.37	9.53	-
- Participation Fees	22.50	-
- Other Sales	87.00	4.66	1,152.19
Other Operating Income	-	14.48	-
Total Revenue from Operation	1,182.68	3,580.53	2,488.18

The following is the Income mix in terms of value of total other income of our Company from Services: -

(Rs. In Lakhs)

Particulars	As on June 2023	As at March 31
		2023	2022
Revenue from Operation
Sale of Services	100.00%	99.60%	100.00%
- VFX Services	79.13%	96.91%	50.03%
- Comics Sales	2.20%	2.29%	3.67%
- Sponsorship Fees	9.05%	-	-
- Advertising Sales	0.37%	0.27%	0.00%
- Participation Fees	1.90%	-	-
- Other Sales	7.36%	0.13%	46.31%
Other Operating Income	-	0.40%	-
Total Revenue from Operation	100.00%	100.00%	100.00%

Other Income

The following is the other income mix in terms of percentage of total other income of our Company:

(Rs. In Lakhs)

Particulars	As on June 2023	As at March 31
		2023	2022
Other Income:
Dividend Income	-	0.05	0.05
Net Gain On Sale Of Current Investments	-	0.11	-
Profit On Sale Of Tenancy Rights	-	103.36	-
Foreign Exchange Gain (Net)	3.06	3.16	-
Other Non-Operating Income	0.75	5.18	0.16
Total Other Income	3.81	111.85	0.21

(Rs. In Lakhs)

Particulars	As on June 2023	As at March 31
		2023	2022
Other Income:
Dividend Income	-	0.04%	23.47%
Net Gain On Sale Of Current Investments	-	0.10%	-
Profit On Sale Of Tenancy Rights	-	92.41%	-
Foreign Exchange Gain (Net)	80.31%	2.82%	0.00%
Other Non-Operating Income	19.69%	4.63%	76.53%
Total Other Income	100.00%	100.00%	100.00%

Main Components of our Revenues

Income

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

Revenue from Operations

Revenue from Operations includes income from Sales of services and Other Operating income. Sales of Services as a percentage of total revenue was 96.97% and99.99% 2023 and 2022.

Other Income

Our other income includes Dividend Income, Net Gain on sale of Current Investments, Profit on sales of current investments, profit from sales of tenancy rights, foreign exchange gain/loss and other non-operating income and Other income, as a percentage of total income was 3.03% and 0.01% in fiscals 2023 and 2022 respectively.

Expenditure

Our total expenditure primarily consists of (i) Cost of Technical Subcontractors(ii) Employee Benefit Expenses

3. Finance costs (iv)Depreciation and Amortization and (v) Other expenses

The following table sets forth our expenditure in Rupees and as a percentage of our total revenue for the periods indicated:

(Rs. in Lakhs)

Particulars	As on June 2023	As at March 31
		2023	2022
EXPENDITURE
Cost of Technical Subcontractors	112.93	909.62	1,235.92
As a % of Total Revenue	9.52%	24.64%	49.67%
Employee Benefit Expenses	375.34	1,165.23	539.49
As a % of Total Revenue	31.63%	31.56%	21.68%
Finance costs	38.11	72.07	39.89
As a % of Total Revenue	3.21%	1.95%	1.60%
Depreciation and Amortization	18.86	103.80	91.89
As a % of Total Revenue	1.59%	2.81%	3.69%
Other expenses	266.40	917.14	476.80
As a % of Total Revenue	22.45%	24.84%	19.16%
Total Expenditure	811.64	3,167.86	2,383.99

Main Components of our Expenditure

Cost of Technical Subcontractors

Cost of Technical Subcontractors, accounted for 24.64% and 49.67% of our total revenue for the financial year ended as on March 31, 2023 and 2022 respectively.

Employee Benefit Expenses

Expenses in relation to employees remuneration and benefits include Salaries, wages and bonus, Contribution to provident and other funds, Gratuity & leave encashment expense and Staff welfare expenses. Total employee expenses as percent of total revenue was 31.56% and 21.68% for the financial year ended as on March 31, 2023, and 2022 respectively.

Finance Cost

Finance Cost primarily consists of interest expenses on borrowings Amortization of ancillary borrowing costs. Our finance costs accounted for 1.95%and 1.60% of our total revenue for the financial year ended as on March 31, 2023 and 2022 respectively.

Depreciation & Amortization

Depreciation primarily consists of depreciation on the tangible assets of our Company which primarily includes Plant & Machinery, Furniture & Fixtures, Electrical fittings, Vehicles, computers, office equipments and Amortization is on intangible assets of our company. It is provided using the written down method as per the useful lives of assets estimated by the management or at the rates as per the useful life prescribed under Schedule II of the Companies Act, 2013.Our depreciation and amortization expense accounted for 2.81% and 3.69% of our total revenue for the financial year ended as on March 31, 2023 and 2022 respectively.

Other Expenses

Other expenses primarily include Rent, Legal and Professional Fees, Business Promotion, Travelling and Conveyance, Repairs and Maintenance and others. Other expenses accounted etc. accounted for 24.84% and 19.16% of our total revenue for the financial year ended as on March 31, 2023 and 2022 respectively.

Total Expenditure

Total expenditure accounted for 85.79% and 95.80% of our total revenue for the financial year ended as on March 31, 2023 and 2022 respectively.

Statement of profits and losses

The following table sets forth, for the fiscal years indicated, certain items derived from our Companys audited restated summary financial statements, in each case stated in absolute terms and as a percentage of total sales and/or total revenue.

(Rs. in Lakhs)

Particulars	As on June 2023	As at March 31
		2023	2022
INCOME
Revenue from Operations
Revenue	1,182.68	3,580.53	2,488.18
As a % of Total Revenue	99.68%	96.97%	99.99%
Increase/Decrease in %	-66.97%	43.90%	NA
Other Income	3.81	111.85	0.21
As a % of Total Revenue	0.32%	3.03%	0.01%
Increase/Decrease in %	-96.59%	52411.50%	NA
Total Revenue	1,186.49	3,692.38	2,483.99
EXPENDITURE
Cost of Technical Subcontractors	112.93	909.62	1,235.92
As a % of Total Revenue	9.52%	24.64%	49.67%
Employee Benefit Expenses	375.34	1,165.23	539.49
As a % of Total Revenue	31.63%	31.56%	21.68%
Finance costs	38.11	72.07	39.89
As a % of Total Revenue	3.21%	1.95%	1.60%
Depreciation and Amortization	18.86	103.80	91.89
As a % of Total Revenue	1.59%	2.81%	3.69%
Other expenses	266.40	917.14	476.80
As a % of Total Revenue	22.45%	24.84%	19.16%
Total Expenditure	811.64	3,167.86	2,384.00
As a % of Total Revenue	68.41%	85.79%	95.80%
Profit Before Exceptional Items and Tax	374.85	524.52	104.40
As a % of Total Revenue	31.59%	14.21%	4.20%
Exceptional Items	-	-	-
As a % of Total Revenue	0.00%	0.00%	0.00%
Extraordinary Items	-	-	-
As a % of Total Revenue	0.00%	0.00%	0.00%
Profit Before tax	374.85	524.52	104.40
PBT Margin (%)	31.59%	14.21%	4.20%
Tax expense :
(a) Current tax	103.96	163.26	57.86
(b) Adjustment of tax relating to earlier periods	-	5.10	-
(c) Deferred Tax	-	(33.01)	-
Total	103.96	135.35	57.86
As a % of Total Revenue	8.76%	3.67%	2.33%
Profit After Tax	270.89	389.17	46.54
Less: Profit/(Loss) attributable to minority interest	-	-	-
Profit/(Loss) for the Year	270.89	389.17	46.54
PAT Margin (%)	22.83%	10.54%	1.87%
Cash Profit	289.75	492.97	138.43
Cash Profit Margin (%)	24.42%	13.35%	5.56%

Provision for Tax

Income taxes are accounted for in accordance with Accounting Standard – 22 on "Accounting for Taxes on Income" ("AS-22"), prescribed under the Companies (Accounting Standards) Rules, 2006. Our Company provides for current tax as well as deferred tax, as applicable.

Provision for current taxes is made at the current tax rates after taking into consideration the benefits available to our Company under the provisions of the Income Tax Act, 1961.

Deferred tax arises from the timing differences between book profits and taxable profits that originate in one period and are capable of reversal in one or more subsequent periods and is measured using the tax rates and laws applicable as of the date of the financial statements. Our Company provides for deferred tax asset / liability on such timing differences subject to prudent considerations in respect of deferred tax assets.

FOR THE PERIOD APRIL TO JUNE 2023

Income

Total revenue June quarter is reported at Rs 1,186.49 Lakhs of which Revenue from operations was 1,182.68 lakhs and Other Income contributed to Rs 3.81 Lakhs. Revenue from operations consist of Revenue from Sales of Services.

Expenditure

Total Expenditure reported for June quarter 2023 at Rs 811.64 Lakhs which is 68.41% of the total Revenue.

Cost of Technical Subcontractors

Cost of technical subcontractor is Rs 112.93 Lakhs which forms 9.52% of the total revenue compared to Rs. 909.62 Lakhs in fiscal year 2022-23.

Employee Benefit Expenses

Employee Benefit Expenses in terms of value for June quarter is reported at Rs 375.34 Lakhs which is 31.63% of the total revenue for June 2023.

Finance Costs

Finance Costs for June quarter reported at Rs38.11 Lakhs which is 3.21% of the total revenue.

Depreciation and Amortization

Depreciation and Amortization in terms of value was reported at Rs18.86 lakhs which constituted to 1.59% of the total revenue. Mainly increased due to purchase of fixed assets.

Other Expenses

Other Expenses was reported at Rs 266.40 lakhs which constituted at 22.45% of the total revenue in quarter ended June 2023.

Profit/Loss before Tax

Profit before Tax for the June quarter reported at Rs374.85 compared to Rs 524.52 Lakhs in fiscal year 2022-23

Net Profit for the year

For the period ended June 2023, Net Profit reported at Rs 270.89 lakhs.

Income

Total revenue increased by Rs. 1,203.99 Lakhs and 48.38% from Rs. 2,488.39 Lakhs in the fiscal year ended March 31, 2022 to Rs. 3,692.38 Lakhs in the fiscal year ended March 31, 2023. The revenue has increased due to increase in the sales of services and majorly by increase in revenue from VFX services from Rs 1,244.76 Lakhs in the fiscal year ended March 31, 2022 to Rs. 3,469.87 Lakhs in the fiscal year ended March 31, 2022.

Expenditure

Total Expenditure increased by Rs. 783.87 Lakhs and 32.88%, from Rs. 2,383.99Lakhs in the fiscal year ended March 31, 2022 to Rs. 3,167.86Lakhs in the fiscal year ended March 31, 2023. Overall expenditure increased majorly due to increase in Employee expenses, and other expenses due as compared to the previous year.

Cost of Technical Subcontractors

Expenses declined by Rs. 326.30 Lakhs and 26.40%, from Rs. 1,235.92 Lakhs in the fiscal year ended March 31, 2022 to Rs. 909.62Lakhs in the fiscal year ended March 31, 2023.

Employee Benefit Expenses

Employee Benefit Expenses in terms of value and percentage increased by Rs. 625.74 Lakhs and 115.99% from Rs. 539.49 Lakhs in the fiscal year ended March 31, 2022 to Rs. 1,165.23 Lakhs in the fiscal year ended March 31, 2023. Employee cost has increased due to increase in head count and salary expenses.

Finance Costs

Finance Costs increased by Rs. 32.18 Lakhs and 80.67% from Rs. 39.89 Lakhs in the fiscal year ended March 31, 2022 to Rs. 72.07 Lakhs in the fiscal year ended March 31, 2023, due to increase in Long term and short term borrowings.

Depreciation and Amortization

Depreciation and Amortization in terms of value and percentage increased Rs11.91 lakh and by 12.96% from Rs. 91.89 Lakhs in the fiscal year ended March 31, 2022 to Rs. 103.80 Lakhs in the fiscal year ended March 31, 2023 mainly due to purchase of vehicle and furnitures & Fixtures.

Other Expenses

Other Expenses in terms of value and percentage increased Rs 440.34 lakh and by 92.35% from Rs. 476.80 Lakhs in the fiscal year ended March 31, 2022 to Rs. 917.14 Lakhs in the fiscal year ended March 31, 2023. Other Expenses have increased mainly due increase Rent, Repairs & maintenance, travelling expenses and Legal and Professional and Rent expenses.

Profit/Loss before exceptional & extraordinary items and Tax

Profit before exceptional & extraordinary items and Tax has increased by Rs. 420.12 Lakhs and 402.42% from Rs. 104.40 Lakhs in the fiscal year ended March 31, 2022 to Rs. 524.52 Lakhs in the fiscal year ended March 31, 2023. Profit before exceptional & extraordinary items and Tax has increased due to increase in revenue from operation and fall in total expenditure as percent of total revenue from 95.80% in fiscal year ended March 31, 2022 to 85.79% in fiscal year ended March 31, 2023.

Net Profit for the year

Net Profit has increased by Rs. 342.63 Lakhs and 736.19% from profit of Rs. 46.54 Lakhs in the fiscal year ended March 31, 2022 to Rs. 389.17 Lakhs in the fiscal year ended March 31, 2023.

(Rs. In Lakhs)

Particulars	As on June 2023	As at March 31
		2023	2022
Cash Flow from operating activities	(222.29)	138.08	417.28
Cash Flow from investing activities	(52.58)	(310.01)	(229.48)
Cash Flow from financing activities	266.53	186.08	(189.20)

Cash Flows from Operating Activities

Net Cash Net Cash Generated from Operating Activities for June 2023 quarter was reported at Rs -222.29 Lakhs, due to increase in receivables and other current assets to the extent of Rs 422.62 Lakhs and Rs 127.31 lakhs respectively.

Net Cash Generated from Operating Activities in financial year 2023 wasRs138.08 lakhs as compared to Rs417.28 lakhs in financial year 2022. This was mainly on account of increase in payable and Profits from operations.

In the financial year 2022, it was Rs417.28 lakhs. This was mainly on account of decrease in receivables and increase in other current liabilities.

Cash Flows from Investment Activities

For June 2023, Net Cash Invested in Investing Activities was Rs. -52.58 lakhs. This was on account of capital expenditure to the extent of Rs 52.58 Lakhs.

In financial year 2023, the Net Cash Invested in Investing Activities was Rs.-310.01 lakhs. This was on account of capital expenditure to the extent of Rs 313.30 Lakhs.

In financial year 2022, the Net Cash Invested in Investing Activities was Rs. -229.48 lakhs. This was mainly on account of increase in capital expenditure to the extent Rs229.43 Lakhs.

Cash Flows from Financing Activities

For the June 2023, Net Cash from Financing Activities was Rs. 266.53 lakhs. This was mainly on account net proceeds from Long Term and short term borrowings to the extent of Rs 213.16 Lakhs and 91.48 Lakhs respectively.

In financial year 2023, the Net Cash from Financing Activities was Rs. 186.08 lakhs. This was mainly on account net proceeds from Long Term and short term borrowings to the extent of Rs65.10 Lakhs and 193.99 Lakhs respectively.

In financial year 2022, the Net Cash from Financing Activities was negative to Rs. 189.20 lakhs. Due repayment of long term borrowings and interest paid to the extent of Rs 125.33 Lakhs and Rs 23.98 Lakhs respectively.

CAPITALISATION STATEMENT

Statement of Capitalization as on June 30, 2023 on standalone basis

	Pre Issue as at June 30, 2023	Post Issue*
Borrowings
Short- term	591.46	591.46
Long- term (including current maturities) (A)	320.79	320.79
Total Borrowings (B)	912.25	912.25
Shareholders fund
Share capital	118.40	[?]
Reserve and surplus, as restated	752.19	[?]
Total Shareholders fund (C)	870.59	[?]
Long- term borrowings / equity ratio {(A)/(C)}	0.36	[?]
Total borrowings / equity ratio {(B)/(C)}	1.05	[?]

*will be updated in the Prospectus

Statement of Capitalization as on June 30, 2023 on consolidated basis

	Pre Issue as at June 30, 2023	Post Issue*
Borrowings
Short- term	591.46	591.46
Long- term (including current maturities) (A)	320.79	320.79
Total Borrowings (B)	912.25	912.25
Shareholders fund
Share capital	118.40	[?]
Reserve and surplus, as restated	694.90	[?]
Total Shareholders fund (C)	813.30	[?]
Long- term borrowings / equity ratio {(A)/(C)}	0.39	[?]
Total borrowings / equity ratio {(B)/(C)}	1.12	[?]

*will be updated in the Prospectus

FINANCIAL INDEBTEDNESS

Following is a summary of our Companys outstanding borrowings as on June 30, 2023

(Rs. In lakhs)

Category of Borrowings	Sanctioned amount as at June 30, 2023	Nature	Purpose	Outstanding amount as at June 30, 2023
Fund based facilities
Secured
Short Term
ICICI Bank Limited	465.00	Cash Credit for Working Capital	Working Capital	397.33
Unsecured Loans
Bajaj Finance Bank Limited	20.98	Over Draft Business Loan	Working Capital	20.98
Term loans
Unsecured Loans
Axis Bank Limited	40.00	Long term unsecured	Working Capital	37.16
Kisetsu Saison Finance Limited	20.00	Long term unsecured	Working Capital	19.14
L&T Financial Services Limited	50.00	Long term unsecured	Working Capital	47.61
Unity Small Finance Bank Limited	50.00	Long term unsecured	Working Capital	47.82
Aditya Birla Finance Limited	35.00	Long term unsecured	Working Capital	34.24
Clix Capital Services Private Limited	40.00	Long term unsecured	Working Capital	39.44
Hero Fincorp Limited	40.20	Long term unsecured	Working Capital	39.34
Kotak Mahindra Bank Limited	40.00	Long term unsecured	Working Capital	38.11
Shriram Finance Limited	35.00	Long term unsecured	Working Capital	34.44
Duestche Bank Private Limited	50.00	Long term unsecured	Working Capital	38.70
Fed Bank Financial Services Limited	19.50	Long term unsecured	Working Capital	4.06
Vehicle Loan
Saraswat Bank	107.00	Loan for Vehicle	Vehicle Loan	77.06
Interest Fess loans and advances from related parties	36.92	Loan from related parties	Working Capital	36.92
Total	1049.60			912.25

As certified by Sharad Shah & Company by their certificate dated August 23, 2023