Maxposure Ltd Management Discussions

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS

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

Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "Forward looking statement" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to our operations include, among others, economic conditions affecting demand/supply and price conditions in domestic and overseas market in which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental factors.

BUSINESS OVERVIEW

Our Company was incorporated on August 17, 2006 as ‘Maxposure Media Group India Private Limited, a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated August 17, 2006 issued by the Registrar of Companies, National Capital Territory of Delhi and Haryana. Further, our Company was converted into a public limited company pursuant to a resolution passed by the Board of Directors in their meeting held on October 26, 2023 and by our Shareholders at an extraordinary general meeting held on October 27, 2023 and a fresh certificate of incorporation dated November 3, 2023 was issued by the Registrar of Companies, Delhi and Haryana at Delhi and consequently the name of our Company was changed to ‘Maxposure Limited. The corporate identification number of our Company is U22229DL2006PLC152087.

However various amendments in the name of the company took place between the said period, to know more about such amendments please refer to "Our History and Certain Other Corporate Matters" at page no. 109.

Today our Company is a fully integrated marketing and communications agency offering diverse solutions across media, entertainment, technology and advertising verticals. We offer a bouquet of specialized services, including but not limited to, in-flight media solutions, content and digital marketing, brand building, video production and shoots, mobile application, website development, social media marketing, print, technology and advertising solutions on online and offline platforms.

We have consistently grown in terms of our revenues over the past years. In the past three (3) years our revenues from operation were Rs.2,015.85 lakhs in F.Y. 2020-21, Rs.3,268.00 lakhs in F.Y.2021-22 and Rs. 3,178.92 lakhs in the FY 2022-23. Our Net Profit after tax for the above-mentioned periods are Rs.36.22 lakhs, Rs.34.96 lakhs and Rs.448.17 lakhs respectively.

FACTORS AFFECTING OUR RESULT OF OPERATIONS

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

Regulatory Framework

We have obtained all regulatory permissions which are necessary to run our business, Further, some of the approvals are granted for fixed periods of time and need renewals, which are obtained in the course of business, however, there may be change in statutory regulations at any time which cannot be predicted by us. There can be no assurance that the change in regulations will not impact our operations in the future.

Ability of Management

Our success depends on the continued services and performance of the members of our management team and other key employees. Competition for senior management in the industry is intense, and we may not be able to retain our existing senior management or attract and retain new senior management in the future. The loss of any member of our senior management or other key personnel may adversely affect our business, results of operations and financial condition.

Ability to manage logistics and transportation needs

Apart from in-house transportation facility we rely on third party transportation and other logistic facilities at every stage of our business activity including for procurement of products from our suppliers and for transportation from our godown to our customers and other markets. Since the cost of our goods also carried by third party transporters is typically much higher than the consideration paid for transportation, it may be difficult for us to recover damages for damaged, delayed or lost goods. Our operations and profitability are dependent upon the availability of transportation and other logistic facilities in a time and cost-efficient manner. Accordingly, our business is vulnerable to increased transportation costs, transportation strikes and lock-outs, shortage of labour, delays and disruption of transportation services for events such as weather-related problems and accidents. Further, global supply chains can be impacted with the increase in the fees of shipping routes putting cost pressures. Further, movement of goods encounters additional risks such as accidents, pilferage, spoilage or shrinkage may adversely affect our operations, results of operations and financial condition. Although we have not experienced any material logistics and transport related disruptions in the past, any prolonged disruption or unavailability of such facilities in a timely manner could result in delays or non-supply or may require us to look for alternative sources which may not be cost-effective, thereby adversely affecting our operations, results of operations, cash flows and financial condition.

Market & Economic conditions

India is one of the largest economies and is growing at a rapid pace. But in this globalised economy, all the businesses face an uncertain level of volatility from unexpected global events which ranges from global pandemics to wars, to weather changes to supply chain disruption, which may change the economic dynamics and the purchasing capability of the end customers. At the time of market slowdown, the demand falls which has adverse impact on our business.

Competition

We operate in a competitive atmosphere. Our competition varies by market, geographic areas and type of products. Our Company may face stiff competition from domestic as well as global market as the dynamic changes. Some of our competitors may have greater resources than those available to us. While service quality, technical ability, performance records, etc are key factors in client decisions among competitors, however, price& quality are the deciding factor in most cases. Further, this industry is fragmented with many small and medium sized companies and entities, which manufactures some of these products at various levels, which may adversely affect our business operation and financial condition. Further, there are no entry barriers in this industry and any expansion in capacity of existing manufacturers would further intensify competition. Moreover, as we seek to diversify into new geographical areas, new territories, new emerging markets, we face competition from competitors that have a pan- India presence and also from competitors that have a strong presence in regional markets. The markets in which we compete and intend to compete are undergoing, and are expected to continue to undergo, rapid and significant change. We expect competition to intensify as technological advances and consolidations continue. These competitive factors may force us to reduce rates, and to pursue new market opportunities. Increased competition could result in reduced demand for our products, increased expenses, reduced margins and loss of market share. Failure to compete successfully against current or future competitors could harm our business, operating cash flows and financial condition.

COVID-19 Pandemic

Since the onset of the COVID-19 pandemic in March 2020, our Companys operations have been affected as our employees faced the threat of getting infected. In 2020, cases of the novel corona virus started rapidly increasing in India, which led the government of India to impose a nationwide lockdown. The spread of Covid-19 and its recent developments have had and might continue to have repercussions across local, national and global economies. To prevent the spread of Covid-19 and to comply with the restrictions, we had to temporarily suspend our operations in order to follow the Governments norms. We continuously monitored the economic conditions and have outlined sufficient measures to combat the pandemic situation at our business premises. Once the lockdown was lifted, our operations restarted in full swing. Initially we did find a little hiccup in finding workers but because of our enterprising organization, we were able to source quality workforce and we were able to train them and we restarted our operations. After lifting the lockdown and resuming our operations the demand in our industry abruptly increased from the different sectors and we attained the highest production during the partial year 2020-21 and FY 2021-22. The demand after pandemic ultimately nullified the impact of shutdown during

COVID 19 pandemic. The future impact of COVID-19 or any other severe communicable disease on our business and results of operations depends on several factors including those discussed in the chapter "Risk Factors" beginning on Page No. Error! Bookmark not defined.. We are continuing to closely monitor the economic conditions and the effect of COVID-19 and have outlined certain measures to combat the pandemic situation and to minimize the impact on our business.

Significant Developments after March 31, 2023 that may affect our Future Results of Operations

The Directors confirm that there have been no other events or circumstances since the date of the last financial statements as disclosed in the Draft Prospectus which materially or adversely affect or is likely to affect the business or profitability of our Company or the value of our assets, or our ability to pay liabilities within next twelve months.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

1. Basis of preparation of Financial Statements:

The restated summary statement of assets and liabilities of the Company as at June 30, 2023, March 31, 2023, March 31, 2022 and 2021 and the related restated summary statement of profits and loss and cash flows for the year/period ended June 30, 2023, March 31, 2023, March 31, 2022 and 2021 (herein collectively referred to as ("Restated Summary Statements") have been compiled by the management from the audited Financial Statements of the Company for the year/period ended on June 30, 2023, March 31, 2023, March 31, 2022 and 2021 approved by the Board of Directors of the Company. Restated Summary Statements have been prepared to comply in all material respects with the provisions of Part I of Chapter III of the Companies Act, 2013 (the "Act") read with Companies (Prospectus and Allotment of Securities) Rules, 2014, Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("ICDR Regulations") issued by SEBI and Guidance note on Reports in Companies Prospectuses (Revised 2019) ("Guidance Note"). Restated Summary Statements have been prepared specifically for inclusion in the offer document to be filed by the Company with the NSE in connection with its proposed SME IPO. The Companys management has recast the Financial Statements in the form required by Schedule III of the Companies Act, 2013 for the purpose of restated Summary Statements.

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles in India.

All assets and liabilities have been classified as current or non-current as per the Companys normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has determined its operating cycle as twelve months for the purpose of current – non-current classification of assets and liabilities.

2. Use of Estimates:

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

3. Property, Plant & Equipment And Intangible Assets

1. Property, Plant & Equipment

All Property, Plant & Equipment are recorded at cost including taxes, duties, freight and other incidental expenses incurred in relation to their acquisition and bringing the asset to its intended use.

2. Intangible Assets

Intangible Assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any.

1. Depreciation / Amortization:

Depreciation on fixed assets is calculated on a Written - Down value method using the rates arrived at based on the useful lives estimated by the management, or those prescribed under the Schedule II to the Companies Act, 2013. Individual assets cost of which doesnt exceed Rs. 5,000/- each are depreciated in full in the year of purchase.

Intangible assets including internally developed intangible assets are amortised over the year for which the company expects the benefits to accrue. Intangible assets are amortized on straight line method basis over 10 years in pursuance of provisions of AS-26.

2. Impairment of Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Recoverable amount is the higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arms length transaction between knowledgeable, willing parties, less the costs of disposal. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of the recoverable value.

3. Investment:

Non-current investments are carried at cost less any other-than-temporary diminution in value, determined on the specific identification basis.

Profit or loss on sale of investments is determined as the difference between the sale price and carrying value of investment, determined individually for each investment. Cost of investments sold is arrived using average method.

4. Foreign Currency Translations:

Income and expense in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Any income or expense on account of exchange difference either on settlement or on translation at the balance sheet date is recognized in Profit & Loss Account in the year in which it arises.

5. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.

6. Provisions and Contingent Liabilities:

Provision involving substantial degree of estimation in measurement is recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the Financial Statements.

7. Cash and Cash Equivalents:

Cash and cash equivalents comprise Cash-in-Hand, Short-term Deposits and Balance in Current Accounts with Banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. Other Bank Balances are short-term balance ( with original maturity is more than three months but less than twelve months).

8. Inventories:

Inventories comprises of Raw Material and Finished Goods.

Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in, first-out principle.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

9. Revenue Recognition:

Revenue is Recognised only when significant risk and rewards of ownership has been transferred to the buyer and it can be reliabily measured and its reasonable to expect ultimate collection of it. Gross sales are of net trade discount, rebates, sales taxes and excise duties.

Revenue from services is recognized, when services have been performed as per terms of contract, amount can be measured and there is no significant uncertainty as to collection.

The Company adopts accrual concepts in preparation of accounts. Claims /Refunds not ascertainable with reasonable certainity are accounted for, on final settlement.

10. Other Income:

Interest income is accounted on accrual basis. Income other than interest income is accounted for when right to receive such income is established.

11. Employee Benefits:

Defined Contribution Plan:

Contributions payable to the recognised provident fund, which is a defined contribution scheme, are charged to the statement of profit and loss.

Defined Benefit Plan:

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service without any monetary limit. Vesting occurs upon completion of five years of service. Provision for gratuity has been made in the books as per actuarial valuation done as at the end of the year.

12. Earnings per Share:

Basic earning per share is computed by dividing the profit/ (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity share outstanding during the year. Diluted earning per share is computed by dividing the profit/ (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

13. Taxation & Deferred Tax:

Income taxes are accounted for in accordance with Accounting Standard (AS-22) – "Accounting for taxes on income", notified under Companies (Accounting Standard) Rules, 2014. Income tax comprises of both current and deferred tax.

Current tax is measured on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability. They are measured using substantially enacted tax rates and tax regulations as of the Balance Sheet date.

Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization.

14. Segment Reporting:

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors. Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities"

RESULTS OF OUR OPERATIONS

(Amount ? in lacs)

Particulars	For the year ended 30th June, 2023	% of Total**	For the year ended 31st March, 2023	% of Total**	For the year ended 31st March, 2022	% of Total**	For the year ended 31st March, 2021	% of Total**
INCOME
Revenue from Operations (Gross)	1,021.46	82.71%	3,178.92	94.74%	3,268.00	98.39%	2,015.85	89.70%
Other Income	213.48	17.29%	176.63	5.26%	53.37	1.61%	231.42	10.30%
Total Revenue (A)	1,234.94	100.00%	3,355.55	100.00%	3,321.37	100.00%	2,247.27	100.00%
EXPENDITURE
Cost of Material Consumed	45.12	3.65%	116.11	3.46%	47.39	1.43%	-	0.00%
Direct Expenses	308.12	24.95%	1,419.38	42.30%	2,199.93	66.24%	1,546.86	68.83%
Employee Benefit Expenses	136.69	11.07%	462.46	13.78%	229.21	6.90%	287.25	12.78%
Finance Costs	17.86	1.45%	77.32	2.30%	54.37	1.64%	79.40	3.53%
Depreciation and Amortization	12.26	0.99%	36.37	1.08%	31.84	0.96%	35.86	1.60%
Other Expenses	451.63	36.57%	638.42	19.03%	718.54	21.63%	248.80	11.07%
Total Expenses (B)	971.68	78.68%	2,750.06	81.96%	3,281.28	98.79%	2,198.17	97.82%
Profit/(Loss) before Tax	263.26	21.32%	605.49	18.04%	40.09	1.21%	49.10	2.18%
Tax Expense/ (benefit)
(a) Current Tax Expense	131.61	10.66%	152.19	4.54%	14.04	0.42%	6.75	0.30%
(b) Deferred Tax	7.32	0.59%	5.13	0.15%	(8.91)	-0.27%	6.13	0.27%
Net tax expense / (benefit)	138.93	11.25%	157.32	4.69%	5.13	0.15%	12.88	0.57%
Profit/(Loss) for the year	124.33	10.07%	448.17	13.36%	34.96	1.05%	36.22	1.61%

**Total refers to Total Revenue

181

Components of our Profit and Loss Account Income

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

Revenue from Operations

Our revenue from operation as a percentage of our total income was 82.71%, 94.74%, 98.39% and 89.70% for the Quarter ended June 30, 2023 and Financial Years ended March 31, 2023, March 31, 2022 and March 31, 2021 respectively.

Other Income

It is the income earned from Interest received on deposits with banks and others, Foreign Exchange Fluctuation, Profit on Sale of Assets and Unspent Liability written back etc.

Expenditure

Our total expenditure primarily consists of cost of Purchases of Stock in trade, Cost of Raw Material consumed, Direct Expenses, Changes in inventories of stock in trade, employee benefit expenses, finance costs, Depreciation & Other Expenses.

Employee Benefit Expenses

Our employee benefits expense comprises of Salaries and wages, Contribution to PF, Gratuity Expense & Staff Welfare Expenses.

Finance costs

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

Other Expenses

Other expenses primarily include Travelling expense, Sales Promotion Expense, Bad Debts, Rent Expense etc.

Provision for Tax

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

For the quarter ended June 30^th, 2023

Income

The total income of our company for the year ended June 30th, 2023 was ? 1,234.94 lacs.

Expenditure

Cost of Material Consumed

For the year ended June 30th, 2023, our company incurred Cost of Raw Material was ? 45.12 lacs.

Direct Expenses

For the year ended June 30th, 2023, our Company incurred cost for direct expenses ? 308.12 lacs.

Employee Benefit Expenses

For the year ended June 30th, 2023, our Company incurred for employee benefit expenses ? 136.69 lacs.

Finance Costs

The finance costs for the year ended June 30th, 2023 was ? 17.86 lacs.

Depreciation & Amortization Expense

Depreciation & Amortization Expense for the year ended June 30th, 2023 was ? 12.26 lacs.

Other Expenses

For the year ended June 30th, 2023, our other expenses were ? 451.63 lacs.

Profit/ (Loss) before Tax

Our Company had reported a profit before tax for the year ended June 30th, 2023 of ? 263.26 lacs

Profit/ (Loss) after Tax

Profit after tax for the year ended June 30th, 2023 was at ? 124.33 lacs.

Fiscal 2023 compared with fiscal 2022

Income

The total income of our company for fiscal year 2023 was ? 3,355.55 lacs against ? 3,321.37 lacs total income for Fiscal year 2022. An increase of 1.03% in total income. This increase was due to the increase in Other Income.

Expenditure

Cost of Material Consumed

In Fiscal 2023, our Company incurred cost for materials consumed ? 116.11 lacs against ? 47.39 lacs expenses in fiscal 2022. An increase of 145.01%. This increase was due to increase in consumption raw material in printing of magazines. Direct Expenses

In Fiscal 2023, our Company incurred direct cost of ? 1,419.38 lacs against ? 2,199.93 lacs expenses in fiscal 2022. A decrease of 35.48%. This decrease was due to business exit strategy for low profit margin assignments.

Employee Benefit Expenses

In Fiscal 2023, our Company incurred for employee benefit expenses ? 462.46 lacs against ? 229.21 lacs expenses in fiscal 2022. The increase of 101.76%. This increase was due new manpower hired and increments to the existing experienced manpower for the existing business and future projects of the company.

Finance Costs

The finance costs for the Fiscal 2023 was ? 77.32 lacs while it was ? 54.37 lacs for Fiscal 2022.This increase of 42.21% was due to fresh term loan availed for the purchase of plant and machinery.

Other Expenses

In fiscal 2023, our other expenses were ? 638.42 lacs and ? 718.54 lacs in fiscal 2022. This decrease of 11.15% was due to discontinuation of services availed for low margin assignments which were discontinued.

Profit/ (Loss) before Tax

Our Company had reported a profit before tax for the Fiscal 2023 of ? 605.49 lacs against profit before tax of ? 40.09 lacs in Fiscal 2022, a 1410.33% increase. This increase was due to segments which had better margins and discontinuation low margin assignments which also helped in decreasing the direct expenses.

Profit/ (Loss) after Tax

Profit after tax for the Fiscal 2023 was at ? 448.17 lacs against profit after tax of ? 34.96 lacs in fiscal 2022, a 1181.95% increase. This was due to increase was due to achievement of better margins in operations.

Fiscal 2022 compared with fiscal 2021

Income

The total income of our company for fiscal year 2022 was ? 3,321.37 lacs against ? 2,247.27 lacs total income for Fiscal year 2021. An increase of 47.80% in total income. This increase was due to introduction of new clients and assignments and widening of customer base.

Expenditure

Cost of Material Consumed

In Fiscal 2022, our Company incurred cost for materials consumed ? 47.39 lacs against Nil in fiscal 2022. This increase was due to opening of inflight magazine market which was shut in fiscal 2021.

Direct Expenses

In Fiscal 2022, our Company incurred direct cost of ? 2,199.93 lacs against ? 1,546.86 lacs expenses in fiscal 2021. An increase of 42.22%. This increase was due to increased revenue from operations in fiscal 2022.

Employee Benefit Expenses

In Fiscal 2022, our Company incurred for employee benefit expenses ? 229.21 lacs against ? 287.25 lacs expenses in fiscal 2021. A decrease of 20.21%. This decrease was due to decrease in general increment in salary & incentives to employees.

Finance Costs

The finance costs for the fiscal 2022 was ? 54.37 lacs while it was ? 79.40 lacs for fiscal 2021. This decrease of 31.52% was due to repayment of unsecured loan availed by the Company.

Other Expenses

In fiscal 2022, our other expenses were ? 718.54 lacs and ? 248.80 lacs in fiscal 2021. An increase of 188.80% due to increase in operations and consumption of outsourcing services.

Profit/ (Loss) before Tax

Our Company had reported a profit before tax for the Fiscal 2022 of ? 40.09 lacs against profit before tax of ? 49.10 lacs in Fiscal 2021, a 18.35% decrease. This decrease was due to entry in low margin segments.

Profit/ (Loss) after Tax

Profit after tax for the Fiscal 2022 was at ? 34.96 lacs against profit after tax of ? 36.22 lacs in fiscal 2021, a 3.48% increase. This was due to increase in revenue from operations.

Cash Flows

(Amount ? in lacs)

Particulars	For the year ended 30th June, 2023	For the year ended March 31, (Standalone)
		2023	2022	2021
Net Cash from Operating Activities	57.13	71.12	101.58	(191.21)
Net Cash from Investing Activities	13.33	(89.05)	81.98	(2.85)
Net Cash used in Financing Activities	333.12	(37.21)	(179.24)	(78.51)

Cash Flows from Operating Activities

Net cash from operating activities for the quarter ended 30^th June 2023, was ? 57.13 lacs as compared to the Profit Before Tax at ? 263.26 lacs. Net cash from operating activities for the year ended 31st March 2023, was ? 71.12 lacs as compared to the Profit Before Tax at ? 605.49 lacs. Net cash from operating activities for fiscal 2022 was at ? 101.58 lacs as

compared to the Profit Before Tax at ? 40.09 lacs while for fiscal 2021, net cash from operating activities was at ? (191.21) lacs as compared to the Profit Before Tax at ? 49.10 lacs.

Cash Flows from Investment Activities

Net cash from investing activities for the quarter ended 30^th June 2023 was ? 13.33 lacs. Net cash from investing activities for the year ended 31st March 2023 was ? (89.05) lacs due to outflow for acquisition of property plant & Equipment. Net cash flow from investing activities for fiscal 2022 was at ? 81.98 lacs due to inflow due to Sales of Property Plant Equipment and Interest Income Received. While for fiscal 2021, net cash flow from investing activities was at ? (2.85) lacs due to due to acquisition of property, plant & Equipment.

Cash Flows from Financing Activities

Net cash from financing activities for the quarter ended 30^th June 2023 was ? 333.12 lacs was due to procurement of credit facilities. Net cashflow from financing activities for the year ended 31st March 2023 was ? (37.21) lacs due to payment of finance cost. Net cash from financing activities for fiscal 2022 was at ? (179.24) lacs due to repayment of loan, while for fiscal 2021, net cash from financing activities was at ? (78.51) lacs due to payment of finance cost.

OTHER MATTERS

1. Unusual or infrequent events or transactions

Except as described in this Draft Prospectus, during the periods under review there have been no transactions or events, which in our best judgment, would be considered unusual or infrequent.

2. Significant economic changes that materially affected or are likely to affect income from continuing Operations

Other than as described in the Section titled "Financial Information" and chapter titled "Managements Discussion and Analysis of Financial Conditions and Results of Operations", beginning on Page 170 and 175 respectively of this Draft Prospectus , to our knowledge there are no significant economic changes that materially affected or are likely to affect income from continuing Operations.

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

Other than as described in the chapter titled "Risk Factors" and "Managements Discussion and Analysis of Financial Conditions and Result of Operations", beginning on Page Error! Bookmark not defined. and 175 respectively of this Draft Prospectus , best to our knowledge there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our company from continuing operations.

4. Future relationship between Costs and Income

Other than as described in the chapter titled "Risk Factors" beginning on Page Error! Bookmark not defined. of this Draft Prospectus , best to our knowledge there are no factors, which will affect the future relationship between costs and income or which are expected to have a material adverse impact on our operations and finances.

5. Competition Conditions

We face competition from existing and potential competitors which is common for any business. We have, over a period of time, developed certain competitors who have been discussed in section titles "Business Overview" beginning on page no. 90 of this Draft Prospectus.