Fonebox Retail Ltd Management Discussions

You should read the following discussion ofour financial condition and results of operations together with our restated standalone financial statements included in the Red Herring Prospectus. You should also read the section entitled "Risk Factors" beginning on page 27, 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 standalone 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 as described in the report of our auditors dated January 16, 2024 which is included in this Red Herring Prospectus under the section titled "Restated Standalone Financial Information" beginning on page 198 of this 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 standalone 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 standalone 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 27 and 14 respectively, and elsewhere in this Red Herring Prospectus Accordingly, the degree to which the financial statements in this 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 Red Herring Prospectus.

Our Company was originally incorporated as "Fonebox Retail Pr?vate Limited" a pr?vate limited company under the provision of Companies Act, 2013 vide Certificate of Incorporation dated February 05, 2021 issued by Registrar of Companies, Central Registration Centre. Later on, our Company was converted into a Public Limited Company pursuant to special resolution passed at Extra-ordinary General Meeting by the shareholders of our Company held on June 28, 2023 and the name of our Company was changed to "Fonebox Retail Limited". A fresh Certificate of Incorporation consequent upon Conversion from Pr?vate Limited Company to Public Limited Company dated July 12, 2023 was issued by the Registrar of Companies, Ahmedabad. The Corporate Identification Number of our Company is U51909GJ2021PLC119941

The main object of the company is To carry on in India or elsewhere, the business to act as distributors, stockiest, franchises, exporters, importers, servicemen, franchisers, otherwise to act as a dealer in all classes, kinds, models, types, nature and description of communication instruments, mobile, telephone, earphone, all other types of communication gadgets, household appliances, electrical appliances, gadgets such as television, refrigerator, air condition, cooking utensils, containers, heaters, geysers, fans, vacuum cleaners, radio, television, stereo, videos, tape recorders, their consumables, parts, accessories and components. The company commenced its operations by in the year 2020-21.

Promoters of our company are Mr. Manishbhai Girishbhai Patel, Mr. Jigar Lallubhai Desai, Mr. Parth Lallubhai Desai, Mr. Jigneshkumar Dashrathlal Parekh and Mr. Amitkumar Gopalbhai Patel. While Mr. Manishbhai Girishbhai Patel and Mr. Amitkumar Gopalbhai Patel were associated with the company since its incorporation. Mr. Jigneshkumar Dashrathlal Parekh, Mr. Jigar Lallubhai Desai and Mr. Parth Lallubhai Desai joined our company by acquisition of equity shares in 2021. In this dynamic and extremely competitive business environment, we have developed a diversified business model with our offerings ranging from mobile handsets, mobile accessories and other consumer durable home appliances such as Smart TVs, Laptop, Air condition etc. Our promoters have combined experience of more than 30 years in the retail distribution, sales and marketing industry, which is the driving force behind the growth achieved by the company.

Our Company is engaged in multi-brand retail selling of Smart Phones and allied accessories from manufacturers like Vivo, Apple, Samsung, Oppo, Realme, Nokia, Narzo, Redmi, Motorola, LG and Micromax. We are also engaged in

multi-brand retail selling of consumer durable electronics goods like Laptop, Washing Machines, Smart TVs, Air Conditioners, Fridges, etc. from brands like TCL, Haier, Lloyd, Daikin, Voltas, Mi, Realme, OnePlus.

We operate our retail business with multiple brands. We have a portfolio of retail stores with different brands. We initially started our business operations with brand "Fonebox", for our company owned stores as well as franchise stores. Further, we acquired famous mobilephone retail store brands such as "Fonebook" and "My Mobile" vide Business Purchase agreements from their respective owners in the year 2021.

Over the years, we have grown our business by focusing on our brands as well as acquiring existing business of other retail brands. In February 2021, we started our business operations with 2 stores with name "Fonebox" in FY 2021 achieving a turnover of around 9.92 lakhs in one month of operation. Besides growing our owned brand "Fonebox", we focused on inorganic growth by acquiring brands and business of existing stores in FY 2022. We acquired 49 stores under different brand names namely "Fonebook" and "My Mobile" in FY 2022. After acquisition of the brand "Fonebook" we started 11 new stores under the same brand name. As on January 05, 2024 we operate a total of 143 stores. Brand and store acquisition has aided our growth inorganically, along side we have developed our business by improving business of the existing stores and opening new stores simultaneously. For more detail of said transaction, please refer to heading titled "Major events" in the chapter titled "History and Corporate Matters" beginning on page 161 of this Red Herring Prospectus

We mainly operate under the brand name of <3 and .As on

January 05, 2024, we operate from total 143 stores across the state of Gujarat. We primarily sell smart mobile handsets of all the major brands, accessories for the mobile handsets, tablets, data cards and other consumer duarable electronics goods under one roof. Out of 143 stores 39 stores are company owned retail outlets ("COCO Model") and 104 stores are under franchise owned and company operated retail model ("FOCO Model") distributed in more than 20 cities in Gujarat.

The financial performance of the company for stub period and last three years as per restated standalone financial Statement:

Particulars		For the Period/Year ended
	September 30, 2023	March 31, 2023	March 31, 2022	March 31, 2021
Revenue from Operations	13975.84	19582.60	9090.74	9.92
Growth in Revenue from Operations (%)	NA	115.41	91525.93	NA
Gross Profit	1380.32	1913.16	818.19	0.43
Gross Profit Margin (%)	9.88	9.77	9.00	4.35
EBITDA	239.00	346.24	83.90	(2.29)
EBITDA Margin	1.71	1.77	0.92	(23.04)
Profit After Tax	155.19	159.86	12.79	(2.36)
PAT Margin (%)	1.11	0.82	0.14	(23.84)
RoE (%)	27.54	118.20	35.24	(38.21)
RoCE(%)	18.81	34.55	17.02	(36.99)
Net Fixed Asset Turnover (In Times)	30.44	43.65	42.45	2.28
Net Working Capital Days	51	16	(2)	970
Operating Cash Flows	(714.95)	(524.68)	90.66	6.88

OURBUSINESSMODE^^^

Our Business Model comprised of two models:

a) Sale through Owned Stores (COCO Model): Under this model, we sale mobile handsets, mobile accessories and other consumer durable home appliances through our owned stores. Our company as on January 05, 2024 owns and operates 39 stores strategically located in high-traffic areas across State of Gujarat. These stores serve as hubs for showcasing the latest smart phones, providing hands-on experiences, and delivering top-notch customer services. Our company directly operates its outlets or facilities. The company is responsible for all aspects of the operation, including staffing, management, maintenance, and overall business strategy.

b) Sale through Franchise Branch Stores (FOCO Model): As on January 05, 2024, we sale mobile handsets, mobile accessories and consumer durable home appliances through 104 franchise retail outlets. All of 104 franchises, are operating on FOCO model. Under FOCO model, the company gives its brand name to the franchise at a pre-agreed franchise fee for a period of one to five years. In FOCO Model, we earn 1% of the total turnover achieved by respective franchises, where such stores are operated by franchise owner. The company gives its brand name "Fonebox", "Fonebook", or "My Mobile" to the franchise and the store is operated by franchise owner.

Quantification of Shops increased:

Year	Period	Own Store	Franchise Store	Total Store
2020-2021	01/04/2020 TO 31/03/2021	1	1	2
2021-2022	01/04/2021 TO 31/03/2022	31	41	72
2022-2023	01/04/2022 TO 31/03/2023	36	119	155

Increase in Profit Margin (Year on Year):

Company is engaged in multi-brand retail selling of Smart Phones and allied accessories from manufacturers like Vivo, Apple, Samsung, Oppo, Realme, Nokia, Narzo, Redmi, Motorola, LG and Micromax. We are also engaged in multi-brand retail selling of consumer durable electronics goods like Laptop, Washing Machines, Smart TVs, Air Conditioners, Fridges, etc. from brands like TCL, Haier, Lloyd, Daikin, Voltas, Mi, Realme, OnePlus. The business of company is high volume-low margin business.

Revenue from operations of our company was Rs. 19,582.60 Lakhs and Rs. 9,090.74 Lakhs in FY 2022-23 and FY 2021-22 respectively. Profit after tax of company was Rs. 159.86 Lakhs and Rs. 12.79 Lakhs in FY 2022-23 and FY 2021-22 respectively amounting to PAT Margin of 0.82% for FY 2022-23 and 0.14% for FY 2021-22.

Profitability of company depends upon achievement of present targets as provided by the various mobile phone manufacturing companies. Due to increase in sale of our company, buying capacity of company was increased. Mobile

phone manufacturing companies provides various additional margins to companies where given targets are achieved.

Moreover, Company was incorporated in February 2021. During FY 2021-22 company was in the initial years of

operations. Therefore, Due to increase in the turnover of the company margins of our company has increased

After the date of last Audited accounts i.e., September 30, 2023, the Directors of our Company confirm that, there

have not been any significant material developments;

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

• Expansi?n of our distribution network

As we look to grow our number of stores in the future, we expect our new stores to help provide accessibility to "Fonebox" , "Fonebook" and "My Mobile" brands to a larger number of customers, which helps us to enhance our brand awareness in the locations where our stores open. Growing our number of restaurants has also historically enabled us to achieve economies of scale through operational leverage across various costs. This also enabled us to enhance our purchasing power with our suppliers and obtain better pricing for the products that we procure for our customers.

• Cost of Goods (Purchase of Stock in Trade)

Cost of goods is the largest component of our expenses, representing 95.65%, 90.98%, 90.03% and 89.82% of our total revenue, in FY 2021, 2022, 2023 and for the period ended September 30, 2023, respectively. Therefore, any change in the market pnces of smart phones, electrical accessories or any part(s) used in the manufacturing of the same for e.g. semiconductor chips, will have a significant and direct impact on our profitability. Our cost of goods is also impacted by the quality that we offer in our stores. Our results of operations are therefore affected by our on-going ability to procure quality goods at an optimum pnce.

• Our diversifiedproductportfolio andproduct mix

Our Company is engaged in multi-brand retail selling of Smart Phones and allied accessories from manufacturers like Vivo, Apple, Samsung, Oppo, Realme, Nokia, Narzo, Redmi, Motorola, LG and Micromax. Which enables us to serve as a "one-stop-shop", with consumers across all income levels purchasing our products. We are also engaged in multi-brand retail selling of consumer durable electronics goods like Smart TVs, Air Conditioners, Fridges, Coolers etc. from brands like TCL, Haier, Lloyd, Daikin, Voltas, Mi, Realme, OnePlus. A diverse product portfolio and product mix not only helps increase revenue from operations but also reduces dependence on any single product or product category. The Total Revenue from operations for the period ended on September 30, 2023 was Rs. 13,975.84 Lakhs and for the year ended on FY 2023 was Rs.19,582.60 Lakh as compared to Rs.9,090.74 Lakh during the FY 2022.

• Consumer spending, demographics and general economic and market conditions in India

The consumer spending patterns, demographics, and overall economic conditions in India can significantly impact our company as higher disposable income levels enable consumers to spend more on discretionary items like mobile phones. During periods of economic growth, when disposable income rises, there is typically an uptick in consumer demand for upgraded or premium mobile devices. While during, there may be a shift towards more budget-friendly options rather than premium flagship models.

• Competition

We compete within the mobile retail industry as well as other consumer durable electrical goods. The mobile retail industry in India is competitive, and we generally compete on the basis of product and service quality and price, location. The industry is often also affected by various factors, including changes in consumer tastes, economic conditions, demographic and technological trends and consumer disposable income. Due to increased competition, we could experience downward pressure on pnces, lower demand for our products, reduced margins, an inability to take advantage of new business opportunities, including finding suitable store locations and a loss of market share.

• Other Factors:

• COVID-19 Pandemic;

• Natural Calamities e.g., Tsunami

• Political Stability of the Country;

• Our dependence on limited number of suppliers 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;

• 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 IX" beginning under Chapter titled "Restated standalone Financial Information" beginning on page 198 of this Red Herring Prospectus.

The following descriptions set forth information with respect to the key components of our statement of profit and loss.

Our Income

Revenue from Operations

Our revenue from operations primarily consists of sale of products.

The sale of products consists of selling of Smart Phones and allied accessories from manufacturers like Vivo, Apple, Samsung, Oppo, Realme, Nokia, Narzo, Redmi, Motorola, LG and Micromax. We are also engaged in multi-brand retail selling of consumer durable electronics goods like Smart TVs, Air Conditioners, Refrigerators, etc. from brands like TCL, Haier, Lloyd, Daikin, Voltas, Mi, Realme, OnePlus.

Other Income

The key components of our other income are:

(i) interest income; (ii) Commission income Our Expenses

Our expenses primarily consist of the following:

1. Purchases of stock-in-trade consists of stock, required for the reselling of smart phones and other electrical equipments.

2. Changes in inventories of stock-in-trade are an adjustment of the opening and closing stock of stock-in-trade at the end of the fiscal;

3. Employee benefits expense consists of salaries and wages, contribution to provident and other funds, Gratuity expense and Remuneration paid to Directors/KMPs;

4. Finance costs includes interest expense on borrowings from banks, related parties and other borrowing costs such as bank Charges;

5. Depreciation and amortization expense comprises of depreciation expense on property, plant and equipment, and amortization of intangible assets; and

6. Other expenses primarily include rent, Bank & Swapping Charges, expenses on power and fuel, commission and other miscellaneous expenses.

Our Tax Expenses

Elements of our tax expense are as follows:

7. Current tax: Our current tax is the amount of tax payable based on the taxable profit for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961.

8. Deferred tax: Deferred tax is recognized based on the difference between taxable profit and book profit due to the effect of timing differences. Our deferred tax is measured based on the applicable tax rates and tax laws that have been enacted or substantively enacted by the relevant balance sheet date

	For the Period Ended		For the Year Ended
	30-09-2023		31-03-2023		31-03-2022		31-03-2021
Particulars	Rs. in Lakhs	(%) of Total Income	Rs. in Lakhs	(%) of Total Income	Rs. in Lakhs	(%) of Total Income	Rs. in Lakhs	(%) of Total Income
Revenue from operations	13,975.84	99.66%	19,582.60	99.78%	9,090.74	99.98%	9.92	100.00%
Other Income	47.14	0.34%	43.49	0.22%	1.59	0.02%	-	-
Total Income (I+II)	14,022.98	100.00%	19,626.09	100.00%	9,092.33	100.00%	9.92	100.00%
Expenses:
(a) Purchases of stock-in- trade	13,121.47	93.57%	18,907.49	96.34%	9,308.89	102.38%	25.30	255.00%
(b) Changes in inventories of finished goods, work-in- progress and Stock in Trade	(525.95)	(3.75%)	(1,238.05)	(6.31%)	(1,036.34)	(11.40%)	(15.81)	(159.35%)
(c) Employee benefits expense	167.79	1.20%	324.30	1.65%	173.20	1.90%	-	-
(d) Finance costs	30.68	0.22%	100.71	0.51%	34.99	0.38%	-	-
(e) Depreciation and amortisation expense	39.62	0.28%	69.03	0.35%	31.29	0.34%	0.01	0.14%
(f) Other expenses	973.53	6.94%	1,242.62	6.33%	561.09	6.17%	2.72	27.39%
Total expenses	13,807.14	98.46%	19,406.10	98.88%	9,073.12	99.79%	12.22	123.17%
Profit /(Loss) before tax and Exceptional Items (III-IV)	215.84	1.54%	219.99	1.12%	19.21	0.21%	(2.30)	(23.17%)
Exceptional Items	-	-	(0.25)	(0.00%)	-	-	-	-
Profit /(Loss) before tax (V - VI)	215.84	1.54%	219.74	1.16%	19.21	0.21%	(2.30)	(23.17%)
Tax expense:
(a) Current tax expense	62.56	0.45%	60.54	0.31%	3.00	0.03%	-	-
(b) Short/(Excess) provision of tax for earlier years	-	-	-	-	-	-	-	-
(c) MAT Credit Entitlement	-	-	-	-	(3.00)	(0.03%)	-	-
(d) Deferred tax charge/(credit)	(191)	(0.01%)	(0.67)	(0.00%)	6.42	0.07%	0.06	0.60%
	60.65	0.43%	59.88	0.31%	6.41	0.07%	0.06	0.60%
Profit after tax for the year (VII-VIII)	155.19	1.11%	159.86	0.81%	12.79	0.14%	(2.36)	(23.77%)

TOTAL INCOME:

Revenue from operations

Our Company is engaged in multi-brand retail selling of Smart Phones and allied asscessories from manufacturers like Vivo, Apple, Samsung, Oppo, Realme, Nokia, Narzo, Redmi, Motorola, LG and Micromax. We are also engaged in multi-brand retail selling of consumer durable electronics goods like Smart TVs, Air Conditioners, Fridges, etc. from brands like TCL, Haier, Lloyd, Daikin, Voltas, Mi, Realme, OnePlus. Total Revenue from operations for the period ended September 30, 2023 comprised of t 13,975.84 Lakhs. Income from Operations increased mainly on account of increase in number of stores of both types i.e., Owned Stores (COCO Model) and Franchise operating under FOCO Model in Gujarat resulting in increased sales. Out of total revenue from operations for the period ended September 30, 2023, Revenue from Company Owned Stores constitutes 55.76% and Revenue from Franchise operating under FOCO Model constitutes 44.24%.

Particulars of Revenue Segment wise

Particulars	For the Period ended September 30, 2023
	Sales	%
Revenue from Owned Stores	6182.96	44.24
Revenue from Franchise operating under FOCO Model	7792.88	55.76
Total Revenue	13975.84	100.00

Other Income:

Other income of the company was t 47.14 lakhs for the period ended on September 30, 2023 constituting 0.34% of our total income. Other Income mainly includes commission income.

EXPENDITURE:

Purchase of Stock in trade

Purchase of Stock-in-trade was t 13,121.47 lakhs for the period ended on September 30, 2023 being 93.57% of total income of the company.

Change in inventories of Stock in trade

Our opening stock of Stock in trade was t 2,290.20 lakhs as at April 1, 2023, while it was t 1,052.15 lakhs as at April 1, 2022. Our closing stock of Stock in trade was t 2,816.15 lakhs as at September 30, 2023, while it was t2,290.20 lakhs as at March 31, 2023. The changes in inventories of Stock in trade was t (525.95) lakhs for the period ended September 30, 2023 being (3.75%) of the total income.

Employee Benefit Expenses

Employee Benefit expenses was t 167.79 Lakhs for period ended on September 30, 2023. The Employee Benefit expense represents 1.20% of total income. Employee benefit expense mainly includes salaries and wages, Contributions to provident and Gratuity expenses.

Finance Cost

Finance Costs for period ended on September 30, 2023 was t 30.68 Lakhs which representing 0.22% of total income. Finance Costs mainly includes interest expense.

Depreciation

The Depreciation and amortization expense for September 30, 2023 was t 39.62 lakhs representing 0.28% of total income.

Other Expenses

Other Expenses were Rs. 973.53 Lakh representing 6.94% of total income for period ended on September 30, 2023. Other expense mainly includes Rent, Rates and taxes, Electric Power, Fuel & Water, Repairs and maintenance expenses, Travelling and conveyance, Bank & Swapping Charges, Insurance, Payments to auditors, Legal and professional, Printing & Stationary Expense, Business promotion & testing expense, Commission and Miscellaneous expenses and balance W/off.

REVENUE:

Our total income increased by 115.85% from Rs.9,092.33 Lakhs in FY 2022 to Rs.19,626.09 Lakhs in FY 2023, primarily due to an increase in our revenue from operations and other income as discussed below:

Revenue from operations

Our Company is engaged in multi-brand retail selling of Smart Phones and allied accessories from manufacturers like Vivo, Apple, Samsung, Oppo, Realme, Nokia, Narzo, Redmi, Motorola, LG and Micromax. We are also engaged in multi-brand retail selling of consumer durable electronics goods like Smart TVs, Air Conditioners, Fridges, etc. from brands like TCL, Haier, Lloyd, Daikin, Voltas, Mi, Realme, OnePlus. The Total Revenue from operations for the year ended on FY 2023 was Rs.19,582.60 Lakh as compared to Rs.9,090.74 Lakh during the FY 2022. Revenue from operations was increased by 115.41% in FY 2023. Income from Operations increased mainly on account of increase in number of stores of both types i.e., Owned Stores (COCO Model) and Franchise operating under FOCO Model in Gujarat resulting in increased sales. Out of total revenue from operations in FY 2023 Revenue from Company Owned Stores constitutes 58.79% and Revenue from Franchise operating under FOCO Model constitutes 41.21%, whereas in FY 2022 it was 65.09% and 34.91% of revenue from operations respectively.

Particulars of Revenue Segment wise

	For the year ended March 31
Particulars	2023		2022
	Sales	%	Sales	%
Revenue from Owned Stores	11,512.42	58.79	5,916.84	65.09
Revenue from Franchise operating under FOCO Model	8,070.17	41.21	3,173.89	34.91
Total Revenue	19,582.60	100.00	9,090.74	100.00

Other Income:

Other income of the company were Rs.43.49 lakhs and Rs.1.59 lakhs for FY 2023 and FY 2022 respectively. Interest and commission income were the main constituents for increase in Other Income for the year FY 2023 from FY 2022. Income from commission increased from Rs.1.59 Lakhs in FY 2022 to Rs.43.14 Lakhs in FY 2023.

EXPENDITURE:

Our total expenses increased by 113.89% to Rs.19,406.10 lakhs for the FY 2023 from Rs.9,073.12 lakhs for the FY 2022, primarily due to the reasons discussed below:

Cost of Goods sold

Our cost of goods sold (which is the aggregate of our purchase of stock in trade and changes in inventories of stock in trade) makes up a large portion of our operating expenses. During the year ended on March 31, 2023, and March 31, 2022 our cost of goods sold (purchase of stock in trade and changes in inventories of stock in trade) amounted to Rs.17,669.44 Lakhs, and Rs.8,272.55 Lakhs, respectively, which represents 90.03%, and 90.98%, of our total revenue for the respective periods. Stock in trade consists of stock of various smart phones and other electronic equipments.

Purchase of Stock in trade

Purchase of Stock in trade increased by 103.11% from Rs.9,308.89 lakhs In FY 2022 to Rs.18,907.49 lakhs In FY 2023, the primary reason for such increase was due to an increase in our Companys requirement for stock in order to meet demand of our customers.

Change in inventories of Stock in trade

Our opening stock of (i) Stock in trade was Rs.1,052.15 lakhs as at April 1, 2022, while it was Rs.15.81 lakhs as at April 1, 2021. Our closing stock of (i) Stock in trade was Rs.2,290.20 lakhs as at March 31, 2023, while it was Rs.1,052.15 lakhs as at March 31, 2022. The changes in inventories of Stock in trade decreased to Rs.(1,238.05) lakhs in FY 2023 from Rs.(1,036.34) lakhs in FY 2022 were primarily in proportion with the growth in our Companys business in FY 2023.

Employee Benefit Expenses

Employee Benefit expenses increased to Rs.324.30 Lakhs for FY 2023 from Rs.173.20 Lakh for FY 2022 showing an increase of 87.24% primarily due to increase in includes Salary and wages, , Gratuity and Contribution to Provident and other funds. Salaries and wages were increased to Rs.314.03 Lakhs from Rs.173.20 Lakhs showing an increase of 81.31%. Further, Contribution to Provident and other funds and gratuity expenses amounts to Rs.10.27 Lakhs in FY 2023. This was mainly attributable to an increase in number of employees during the year to support the greater scale of our business during the FY 2023.

Finance Cost

Finance expense were Rs.100.71 Lakhs in FY 2023 as against Rs.34.99 Lakhs in FY 2022 showing increase of 187.83%. The increase in finance cost is mainly due to increase in interest expenses from Rs.34.99 Lakhs in FY 2022 to Rs.97.33 Lakhs. Interest expenses consists of interest on secured loans, trade advances, cash credit and unsecured loans.

Depreciation

The Depreciation and amortization expense for FY 2023 was Rs.69.03 lakhs as against ^31.29 lakhs for FY 2022 showing an increase of 120.59% mainly due to mainly on account of an increase in property, plant and equipment to support the operational activities of the business.

Other Expenses

Other Expenses increased to Rs.1242.62 Lakhs for FY 2023 from Rs.561.09 lakh for FY 2022 showing an increase of 121.47%. Other expenses consist of Administrative expenses and Selling & Distribution expenses. Administrative expenses increase from Rs.407.43 Lakhs in FY 2022 to Rs.736.18 Lakhs in FY 2023 and Selling & Distribution Expenses increased from Rs.153.66 Lakhs in FY 2022 to Rs.506.44 Lakhs in FY 2023. Primary reason for the increase is mentioned below:

Administrative Expenses:

1. Increase in rent by 55.87% to Rs.374.54 Lakhs in FY 2023 from Rs.240.29 Lakhs in FY 2022, mainly on account of increase of rented premises in order to increase the number of stores and to have a larger distribution network.

2. Increase in bank and swapping charges by 179.10% to Rs.225.18 Lakhs in FY 2023 from Rs.80.68 Lakhs in FY 2022, due to increase in online payments via credit/debit cards by the customers in order to avail benefit of various ongoing schemes and discounts.

3. In addition to this, we have also occurred other administrative expenses such as repairs and maintenance, Legal and professional fees, electricity and petrol expenses, insurance and other miscellaneous expenses combined amounting to Rs.136.46 Lakhs in FY 2023 compared to Rs.86.46 Lakhs in FY 2022.

Selling and Distribution Expenses:

4. Increase in Commission expenses by 262.27% to Rs.369.19 Lakhs in FY 2023 from Rs.101.91 Lakhs in FY 2022. As we operate on two types of business models i.e., Company owned Company operated stores (COCO Model)and Franchise owned and Company operated stores (FOCO Model).

5. Increase in business promotion & testing expense by 318.52% to Rs.57.63 Lakhs in FY 2023 from Rs.13.77 Lakhs in FY 2022, mainly on account of an increase in advertisement expenses.

6. In addition to this, we have also occurred other selling and distribution expenses such as warranty claims, courier expenses, store expenses and other office expenses combined amounting to Rs.79.62 Lakhs in FY 2023 compared to Rs.37.98 Lakhs in FY 2022.

Exceptional Items

Exceptional items consist of Rs.0.25 Lakhs in FY 2023, which occurred due to theft.

Profit before Tax

As a result of the foregoing, we recorded an increase of 1,045.37% in our profit before tax, which amounted to Rs.219.99 lakhs in FY 2023, as compared to Rs.19.21 lakhs in FY 2022. The Profit before Tax for the FY 2023 was 1.12% of the total revenue and it was 0.21% of total revenue for the FY 2022.

Tax Expenses

Our total tax expenses increased to Rs.59.88 Lakhs in FY 2023 from Rs.6.76 Lakhs in FY 2022, primarily due to an increase in current tax to Rs.60.54 Lakhs in FY 2023 from Rs.3.00 Lakhs in FY 2022. The increase in current tax was mainly on account of an increase in our restated profit before tax to U219.99 Lakhs in FY 2023 from Rs.19.21 Lakhs in FY 2022.

Profit after Tax (PAT)

As a result of the foregoing, we recorded an increase of 1149.65% in our profit for the period from Rs.12.79 lakhs in the FY 2022 to Rs.159.86 lakhs in the FY 2023. The Profit before Tax for the FY 2023 was 0.81% of the total revenue and it was 0.14% of total revenue for the FY 2022. The increase in Profit after Tax is mainly due to two reasons i.e., increase in revenue resulting into higher profit compared to previous financial year.

REVENUE:

Our total income increased by 91,541.96% from Rs.9.92 Lakhs in FY 2021 to Rs.9,092.33 Lakhs in FY 2022, primarily due to an increase in our revenue from operations and other income as discussed below:

Revenue from operations

Our Company is engaged in multi-brand retail selling of Smart Phones and allied accessories from manufacturers like Vivo, Apple, Samsung, Oppo, Realme, Nokia, Narzo, Redmi, Motorola, LG and Micromax. We are also engaged in multi-brand retail selling of consumer durable electronics goods like Smart TVs, Air Conditioners, Fridges, etc. from brands like TCL, Haier, Lloyd, Daikin, Voltas, Mi, Realme, OnePlus. The Total Revenue from operations for the year ended on FY 2022 was Rs.9,090.74 Lakh as compared to Rs.9.92 Lakh during the FY 2021. Revenue from operations was increased by 91525.93% in FY 2022. Income from Operations increased mainly on account of increase in number of stores of both types i.e., Owned Stores and Franchise operating under FOCO Model in Gujarat resulting in increased sales. Out of total revenue from operations in FY 2022 Revenue from Owned Stores constitutes 65.09% and Revenue from Franchise operating under FOCO Model constitutes 34.91%, whereas in FY 2021 it was 5.19% and 94.81% of revenue from operations respectively.

Particulars of Revenue Segment wise

Particulars	For the year ended March 31
	2022		2021
	Sales	%	Sales	%
Revenue from Owned Stores	5,916.84	65.09	0.52	5.19
Revenue from Franchise operating under FOCO Model	3,173.89	34.91	9.41	94.81
Total Revenue	9,090.74	100.00	9.92	100.00

Other Income:

Other income of the company were Rs.1.59 lakhs and Rs. Nil for FY 2022 and FY 2021 respectively. Other Income consist of only commission income for FY 2022.

EXPENDITURE:

Our total expenses increased by 74139.27% to Rs.9,073.12 lakhs for the FY 2022 from Rs.12.22 lakhs for the FY 2021, primarily due to the reasons discussed below:

Cost of Goods sold

Our cost of goods sold (which is the aggregate of our purchase of stock in trade and changes in inventories of stock in trade) makes up a large portion of our operating expenses. During the year ended on March 31, 2022, and March 31, 2021 our cost of goods sold (purchase of stock in trade and changes in inventories of stock in trade) amounted to Rs.8,272.55 lakhs, and Rs.9.49 lakhs, respectively, which represents 90.98%, and 95.65%, of our total revenue for the respective periods. Stock in trade consists of stock of various smart phones and other electronic equipments.

Purchase of Stock in trade

Purchase of Stock in trade increased by 36694.03% from Rs.25.30 lakhs In FY 2021 to Rs.9,308.89 lakhs In FY 2021, the primary reason for such increase was due to an increase in our Companys requirement for stock in order to meet demand of our customers in its existing as well as newly opened stores during the period.

Change in inventories of Stock in trade

Our opening stock of (i) Stock in trade was Rs. 15.81 lakhs as at April 1, 2021, while it was Rs.Nil as at March 31, 2020. Our closing stock of (i) Stock in trade was Rs.1,052.15 lakhs as at March 31, 2022, while it was Rs.15.81 lakhs as at March 31, 2021. The changes in inventories of Stock in trade decreased to Rs.(1,036.34) lakhs in FY 2022 from Rs.(15.81) lakhs in FY 2021 were primarily in proportion with the growth in our Companys business in FY 2023.

Employee Benefit Expenses

Employee Benefit expenses increased to Rs.173.20 lakhs for FY 2022 from Nil for FY 2021. The increase due to increase in Salary and wages. As our company was incorporated in February 2021 and substantial part of the revenue was derived from franchise stores, employee expenses for the FY 2021 were Nil.

Finance Cost

Finance expense were Rs.34.99 lakhs in FY 2022 as against Nil in FY 2021. The increase is due to increase in long term as well as short-term borrowing in FY 2022 from Rs.584.26 Lakhs to Nil in FY 2021. Interest expenses consists of interest on secured loans, trade advances, cash credit and unsecured loans.

Depreciation

The Depreciation and amortization expense for FY 2022 was Rs.31.29 lakhs as against Rs.0.01 lakhs for FY 2022 showing an increase of 220273.66% mainly due to mainly on account of an increase in property, plant and equipment to support the operational activities of the business.

Other Expenses

Other Expenses increased to Rs.561.09 Lakhs for FY 2022 from Rs.2.72 lakh for FY 2021 showing an increase of 20549.11%. Other expenses consist of administrative expenses and Selling & Distribution expenses. Administrative expenses increase from Rs.1.72 Lakhs in FY 2021 to Rs.407.43 Lakhs in FY 2022 and Selling & Distribution Expenses increased from Rs.1.00 Lakhs in FY 2021 to Rs.153.66 Lakhs in FY 2022. Primary reason for the increase is mentioned below:

Administrative Expenses:

1. Increase in rent to Rs.240.29 Lakhs in FY 2023 from Nil in FY 2021, mainly on account of increase of rented premises in order to increase the number of stores and to have a larger distribution network.

2. Increase in bank and swapping charges by 16512.10% to Rs.80.68 Lakhs in FY 2022 from Rs.0.49 Lakhs in FY 2021, due to increase in online payments via credit/debit cards by the customers in order to avail benefit of various ongoing schemes and discounts.

3. In addition to this, we have also occurred other administrative expenses such as repairs and maintenance, Legal and professional fees, electricity and petrol expenses, insurance and other miscellaneous expenses combined amounting to Rs.86.46 Lakhs in FY 2022 compared to Rs.1.24 Lakhs in FY 2021.

Selling and Distribution Expenses:

4. Increase in Commission expenses by 10091.00% to Rs.101.91 Lakhs in FY 2022 from Rs.1.00 Lakhs in FY 2021. As we operate on two types of business models i.e., Company owned Company operated stores (COCO Model)and Franchise owned and Company operated stores (FOCO Model).

5. Increase in business promotion & testing expense to Rs.13.77 Lakhs in FY 2022 from Nil in FY 2021, mainly on account of an increase in advertisement expenses.

6. In addition to this, we have also occurred other selling and distribution expenses such as warranty claims, courier expenses, store expenses and other office expenses combined amounting to Rs.37.98 Lakhs in FY 2022 compared to Nil in FY 2021.

Profit before Tax

As a result of the foregoing, we recorded an increase of 935.13% in our profit before tax, which amounted to Rs.19.21 lakhs in FY 2022, as compared to Rs.(2.30) lakhs in FY 2021. The Profit before Tax for the FY 2022 was 0.21 % of the total revenue and it was (23.17)% of total revenue for the FY 2021.

Tax Expenses

Our total tax expenses increased to Rs.5.76 Lakhs in FY 2022 from Rs.0.06 Lakhs in FY 2021, primarily due to an increase in current tax to Rs.2.82 Lakhs in FY 2022 from Nil in FY 2021. The increase in current tax was mainly on account of an increase in our restated profit before tax to Rs.18.11 lakhs in FY 2022, as compared to Rs.(2.30) lakhs in FY 2021.

Profit after Tax (PAT)

As a result of the foregoing, we recorded an increase of 622.23% in our profit for the period from Rs.(2.36) lakhs in the FY 2021 to Rs.12.35 lakhs in the FY 2022. The Profit before Tax for the FY 2022 was 0.13% of the total revenue and it was (23.75)% of total revenue for the FY 2021. The increase in Profit after Tax is mainly due to increase in revenue resulting into higher profit compared to previous financial year.

The following table sets forth certain information relating to our Companys statement of cash flows for the periods indicated:

	For the Period/Financial Year Ended
Particulars	September 30, 2023	March 31, 2023	March 31, 2022	March 31, 2021
Net cash flows (used in)/generated from operating activities	(714.95)	(524.68)	90.66	6.88
Net cash flows (used in) investing activities	(11.55)	(117.95)	(445.18)	(4.37)
Net cash flows generated from financing activities	884.58	689.96	357.54	39.00
Net increase/(decrease) in cash and cash equivalents	158.08	47.31	2.85	41.51

Operating activities

1. For the period ended September 30, 2023, net cash used in operating activities was Rs.714.95 Lakhs. This comprised of the profit before tax of Rs.215.84 Lakhs, which was primarily adjusted for depreciation and amortization expenses of Rs.39.62 Lakhs and finance cost of Rs.30.68 Lakhs. Further, Preliminary expenses amounting to Rs.1.27 Lakhs were also written off during the Financial Year. The resultant operating profit before working capital changes was Rs.287.41 Lakhs, which was primarily adjusted for an increase in inventories purchased during the period of Rs.525.95 Lakhs, decrease in trade receivables of Rs.216.81 Lakhs, decrease in trade payables and other liabilities of Rs.587.32 Lakhs and increase in Loans & Advances & Other assets of Rs.43.34 Lakhs.

2. In FY 2023, net cash used in for operating activities was Rs.(524.68) Lakhs. This comprised of the profit before tax of Rs.219.99 Lakhs, which was primarily adjusted for depreciation and amortization expenses of Rs.69.03 Lakhs, and finance cost of Rs.100.71 Lakhs. Further, Preliminary expenses amounting to Rs.2.54 Lakhs were also written off

during the Financial Year. The resultant operating profit before working capital changes was Rs.391.92 Lakhs, which was primarily adjusted for an increase in inventories purchased during the year of Rs.1,238.05 Lakhs, increase in trade receivables of Rs.90.71 Lakhs, decrease in trade payables and other liabilities of Rs.740.15 Lakhs, increase in Loans & Advances & Other assets of Rs.327.99 Lakhs.

3. In FY 2022, net cash generated from operating activities was Rs.90.66 Lakhs. This comprised of the profit before tax of Rs.19.21 Lakhs, which was primarily adjusted for depreciation and amortization expenses of ^31.29 Lakhs, and finance cost of Rs.34.99 Lakhs. Further, Preliminary expenses amounting to Rs.0.07 Lakhs were also written off during the Financial Year. The resultant operating profit before working capital changes was Rs.85.56 Lakhs, which was primarily adjusted for an increase in inventories purchased during the year of Rs.1,036.34 Lakhs, increase in trade receivables of Rs.227.22 Lakhs, increase in Loans & Advances & Other current assets of Rs.288.81 Lakhs, decrease in trade payables & other liabilities of Rs.1,560.29 Lakhs. We also paid an income tax, net of refunds of Rs.3.00 Lakhs.

4. In FY 2021, net cash generated from operating activities was Rs.6.88 Lakhs. This comprised of the loss before tax of Rs.2.30 Lakhs, which was primarily adjusted for depreciation and amortization expenses of Rs.0.01 Lakhs. Further, Preliminary expenses amounting to Rs.0.07 Lakhs were also written off during the Financial Year. The resultant operating loss before working capital changes was Rs.2.22 Lakhs, which was primarily adjusted for a increase in inventories purchased during the year of Rs.15.81 Lakhs, increase in Loans & Advances & Other Assets of Rs.9.48 Lakhs, decrease in Trade Payables & Other Liabilities of Rs.34.39 Lakhs.

Investing Activities

1. For the period ended September 30, 2023, net cash used in investing activities was Rs.11.55 Lakhs, which primarily comprised of cash used for the purchase of property, plant, and equipment (including capital work in progress) of m.55 Lakhs.

2. In FY 2023, net cash used in investing activities was Rs.117.95 Lakhs, which primarily comprised of cash used for the purchase of property, plant, and equipment (including capital work in progress) of Rs.118.30 Lakhs.

3. In FY 2022, net cash used in investing activities was Rs.445.18 Lakhs, which primarily comprised of cash used for the purchase of property, plant, and equipment (including capital work in progress) of Rs.450.89 Lakhs.

4. In FY 2021, net cash used in investing activities was Rs.4.37 Lakhs, which primarily comprised of cash used for the purchase of property, plant, and equipment (including capital work in progress) of Rs.4.37 Lakhs.

Financing activities

1. For the period ended September 30, 2023, net cash generated from financing activities was Rs.884.58 Lakhs, which predominantly comprised increase of lease long term liabilities of Rs.367.54 Lakhs and finance cost paid of Rs.30.68 Lakhs, net repayments made to borrowings of Rs.2.64 Lakhs and issue of share capital of Rs. 550.00 lakhs.

2. In FY 2023, net cash generated from financing activities was Rs.689.96 Lakhs, which predominantly comprised increase of lease long term liabilities of Rs.795.66 Lakhs and finance cost paid of Rs.100.71 Lakhs, which was partially offset by proceeds received, net of repayments made from borrowings of Rs.4.99 Lakhs.

3. In FY 2022, net cash generated from financing activities was Rs.357.54 Lakhs, which predominantly comprised of increase in borrowings of Rs.14.63 Lakhs, increase of lease long term liabilities of Rs.342.90 Lakhs and finance cost paid of Rs.34.99 Lakhs and issue of share capital of Rs.35.00 Lakhs.

4. In FY 2021, net cash generated from financing activities was Rs.39.00 Lakhs, which predominantly comprised of increase in long term liabilities of Rs.24.00 Lakhs and issue of share capital of Rs.15.00 Lakhs.

As of September 30, 2023, we had total outstanding indebtedness of Rs.1,058.22 Lakhs, which comprises of long-term borrowings amounting to Rs.9.64 Lakhs and short-term borrowings of Rs.1,048.58 Lakhs. The following table sets out our indebtedness as of March 31, 2023, 2022 and 2021.

	As on Period/year ended
Particulars	September 30, 2023	March 31, 2023	March 31, 2022	March 31, 2021
Long term borrowing (excluding current maturity)	7.00	9.64	14.63	-
Short term borrowings	494.40	1,043.59	564.98	-
Current maturity of long-term borrowing	5.17	4.99	4.65	-
Total	506.57	1,058.22	584.26	-

Our net capital expenditures include expenditures on tangible and intangible assets. Tangible assets primarily include furniture and fixtures, electrical installations, office equipment and vehicle. Intangible assets include computer software, brand name and goodwill.

The following table sets out our net capital expenditures for the period ended September 30, 2023, and for the financial year ended 2023, 2022 and 2021:

	As on Period/year ended
Particulars	September 30,2023	March 31, 2023	March 31, 2022	March 31, 2021
Tangible Assets
Furniture and fixtures	4.71	63.96	272.53	3.80
Electrical installations	2.54	11.72	54.85	0.57
Computers	1.65	10.64	34.94	-
Office equipment	0.94	7.14	36.66	-
Vehicles	-	-	22.46	-
Sub-Total (A)	9.83	93.46	421.45	4.37
Intangible Assets
Brands	-	-	11.00	-
Computer Software	1.72	24.84	18.44	-
Sub-Total (B)	1.72	24.84	29.44	-
Total (A+B)	11.55	118.30	450.89	4.37

For further information please refer "Annexure - IX - Related Party Transaction " under section "Restated Standalone Financial Information" beginning from page 198 of this Red Herring Prospectus.

In the course of undertaking our business, we are exposed to the following risks arising from financial instruments, which include credit risk, liquidity risk and market risk. Our primary focus is to achieve better predictability of financial markets and seek to minimize potential adverse effects on our financial performance.

Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or fail to pay amounts due causing financial loss. The potential activities where credit risks may arise include from cash and cash equivalents, security deposits or other deposits and principally from credit exposures to customers relating to outstanding receivables. The maximum credit exposure associated with financial assets is equal to the carrying amount.

Our exposure to credit risk is influenced mainly by the individual characteristics of each customer and the geography in which it operates. Credit risk is managed through credit approvals, establishing credit limits, and continuously

monitoring the creditworthiness of customers to which our Company grants credit terms in the normal course of business.

Liquidity Risk

Liquidity risk is the risk that we will encounter difficulty in meeting the obligations associated with its financial liabilities that are proposed to be settled by delivering cash or other financial asset. Our financial planning has ensured, as far as possible, that there is sufficient liquidity to meet the liabilities whenever due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to our reputation. We have practiced financial diligence and syndicated adequate liquidity in all business scenarios.

Market Risk

Market risk is the risk that results in changes in market prices, such as interest rates and equity prices, which will affect our income or the value of our holdings of financial instruments. Our operations result in us being exposed to foreign currency risk on account of trade receivables, trade payables and borrowings. The foreign currency risk may affect our income and expenses, or our financial position and cash flows. The objective of our management of foreign currency risk is to maintain this risk within acceptable parameters, while optimising returns.

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 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 "RiskFactors" beginning on page 27 of the Red Herring Prospectus. To our knowledge, except as we have described in the 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 27 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, government policies and other economic factor.

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 engaged in multi-brand retail selling of Smart Phones and allied accessories from manufacturers like Vivo, Apple, Samsung, Oppo, Realme, Nokia, Narzo, Redmi, Motorola, LG and Micromax. We are also engaged in multi-brand retail selling of consumer durable electronics goods like Smart TVs, Air Conditioners, Fridges, etc. from brands like TCL, Haier, Lloyd, Daikin, Voltas, Mi, Realme, OnePlus. Increases in revenues are by and large linked to increase in volume of stock sold by our company.

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

Our Company is engaged in multi-brand retail selling of Smart Phones and allied accessories from manufacturera like Vivo, Apple, Samsung, Oppo, Realme, Nokia, Narzo, Redmi, Motorola, LG and Micromax. We are also engaged in multi-brand retail selling of consumer durable electronics goods like Smart TVs, Air Conditioners, Fridges, etc. from brands like TCL, Haier, Lloyd, Daikin, Voltas, Mi, Realme, OnePlus. Relevant Industry data, as available, has been included in the chapter titled "Industry OverView" beginning on page 112 of this Red Herring Prospectus.

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

Our Company is engaged in multi-brand retail selling of Smart Phones and allied accessories from manufacturera like Vivo, Apple, Samsung, Oppo, Realme, Nokia, Narzo, Redmi, Motorola, LG and Micromax. We are also engaged in multi-brand retail selling of consumer durable electronics goods like Smart TVs, Air Conditioners, Fridges, etc. from brands like TCL, Haier, Lloyd, Daikin, Voltas, Mi, Realme, OnePlus. Our company is engaged in the services sector therefore this clause is not applicable.

8. The extent to which business is seasonal.

Our Company is engaged in multi-brand retail selling of Smart Phones and allied accessories from manufacturera like Vivo, Apple, Samsung, Oppo, Realme, Nokia, Narzo, Redmi, Motorola, LG and Micromax. We are also engaged in multi-brand retail selling of consumer durable electronics goods like Smart TVs, Air Conditioners, Fridges, etc. from brands like TCL, Haier, Lloyd, Daikin, Voltas, Mi, Realme, OnePlus and Business of our company is not seasonal.

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

Our Company is engaged in multi-brand retail selling of Smart Phones and allied accessories from manufacturera like Vivo, Apple, Samsung, Oppo, Realme, Nokia, Narzo, Redmi, Motorola, LG and Micromax. We are also engaged in multi-brand retail selling of consumer durable electronics goods like Smart TVs, Air Conditioners, Fridges, etc. from brands like TCL, Haier, Lloyd, Daikin, Voltas, Mi, Realme, OnePlus.

As we are in the engaged in the business of retail distribution of smart phones and other electrical accessories, substantial part of our consumer base consists of individual customers. To that extent, we are not dependent on any particular customer for slae of our products.

Top ten suppliers of our company for FY2023, FY 2022 and FY 2021 is provided in below-mentioned table

Suppliers	% contribution to total purchase
	For the period ended September 30,2023	For the Financial Year 2022-23	For the Financial Year 2021-22	For the Financial Year 2020-21
Top 1 Supplier	17.96%	18.12%	15.00%	36.68%
Top 3 Suppliers	43.39%	41.89%	35.63%	78.72%
Top 5 Suppliers	58.34%	59.28%	52.52%	99.09%
Top 10 Suppliers	78.30%	83.02%	79.55%	100.00%

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 127 of this Red Herring Prospectus.