Trom Industries Ltd Management Discussions

The following discussion is intended to convey management’s perspective on our financial condition and results of operations for the financial year ended March 31, 2024, March 31, 2023 and March 31,2022. One should read the following discussion and analysis of our financial condition and results of operations in conjunction with our section titled "Financial Information" and the chapter titled "Financial Information" on page 172 of this Red Herring Prospectus. This discussion contains forward-looking statements and reflects our current views with respect to future events and our financial performance and involves numerous risks and uncertainties, including, but not limited to, those described in the section entitled "Risk Factors" on page 30 of this Red Herring Prospectus. Actual results could differ materially from those contained in any forward-looking statements and for further details regarding forward-looking statements, kindly refer the chapter titled "Forward-Looking Statements" on page 22 of this Red Herring Prospectus. Unless otherwise stated, the financial information of our Company used in this section has been derived from the Restated Financial Information. Our financial year ends on March 31 of each year. Accordingly, unless otherwise stated, all references to a particular financial year are to the 12-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to Trom

Industries Limited, our Company. Unless otherwise indicated, financial information included herein are based on our Restated Financial Information for the financial year ended March 31, 2024, March 31, 2023 and March 31, 2022 included in this Red Hearing Prospectus.

BUSINESS OVERVIEW

Our Company was originally formed as Partnership Firm under the name and style of "Trom Solar" on August 08,

2011, bearing Firm Registration No. GUJGND00921. Our Company was converted into public limited company pursuant to a resolution passed in the meeting of the partners held on April 10, 2019, and name of our Company was changed to "Trom Industries Limited" and pursuant to the provisions of sub-section (2) of section 7 of the Companies Act, 2013 (18 of 2013) and rule 18 of the Companies (Incorporation) Rules, 2014 and a fresh Certificate of Incorporation dated August 01, 2019, was issued by Registrar of Companies, Central Registration Centre. The Corporate Identity Number of our Company is U29309GJ2019PLC109376.

Trom Industries Limited is a Solar EPC (Engineering, Procurement, and Construction) company specializing in residential solar rooftop, industrial solar power plants, ground-mounted solar power plants, and solar street lights. Trom is engaged in the comprehensive development of diverse solar projects. For residential rooftop installations, Trom designs and implements solar systems tailored to individual homes. In the industrial sector, our Company scales up our operations to design and construct larger solar power plants catering to industrial needs. Ground-mounted solar power plants involve the development of solar arrays on open land. Additionally, our Company extends our services to include the Supply and Installation of solar street lights for public and commercial areas. Our business encompasses engineering design, procurement of materials, on-site construction, project management, and adherence to regulatory standards across various sectors. Our solar applications contribute to the growth of sustainable energy solutions across residential, industrial, public domains and government sector. Also, our business operations encompass the extensive trading and distribution of a diverse range of products, including solar panels, inverters, and an array of materials intricately connected to the establishment and functioning of solar power plants. Furthermore, we were also engaged in the trading of all types of footwear to a very small scale during the period. We are actively engaged in the development of green hydrogen projects as a pivotal aspect of our future business endeavors. Our warehouse is located at Plot No. B/53-A, G.I.D.C Electronics Estate, Sector No. 25, Gandhinagar-382024, Gujarat, India.

For further details, please see chapter titled "Our Business" on page 112 of this Red Herring Prospectus.

OUR PRODUCT PORTFOLIO

Our portfolio consists of solar products and AC LED light products. Product matrix are as under:

Sr. No.	Name of Product
1.	Solar Product
1.1.	Solar Grid Tied Roof Top System
1.1.1.	Residential solar rooftop
1.1.2.	Ground-mounted solar power plant
1.1.3.	Industrial solar power plant
1.2.	Solar Off Grid System
1.3.	Solar Street Light
1.4.	Solar deep Freezer
1.5.	Solar Home Light
1.6.	Solar Water Purifier
1.7.	Solar Water Pumping
2.	AC LED Light
2.1.	AC LED Street Light
2.2.	AC LED Flood Light

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL YEAR

As per mutual discussion between the Board of the Company and BRLM, in the opinion of the Board of the Company there have notarisen any circumstances since the date of the last Financial Information as disclosed in this Red Herring Prospectus and which materially and adversely affect or is likely to affect within the next twelve months except as follows:

The authorized capital of the Company has been increased from 1,00,000 divided into 10,000 Equity share of 10/- each to 11,00,00,000 divided into 1,10,00,000 Equity shares of 10/- each vide ordinary resolution passed at the Extra-Ordinary General Meeting held on December 27, 2023.

The Board has approved the change of designation of Jignesh Patel as Managing Director in the its meeting held on April 15, 2022.

The Board of Directors has, pursuant to a resolution passed at its meeting held on March 09, 2024 authorized the Issue.

The shareholders of the Company have, pursuant to a special resolution passed in the EGM held on March 13, 2024 authorized the Issue

FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factor" on page 30 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

Changes, if any, in the regulations / regulatory framework / economic policies in India and / or in foreign countries, whichaffect national & international finance. ability to retain our skilled personnel;

Government support and spending on advertising industry;

Performance of Company’s competitors;

Significant developments in India’s economic and fiscal policies;

Volatility in the Indian and global capital market.

DISCUSSION ON RESULT OF OPERATION

Our Significant Accounting Policies

For Significant accounting policies please refer Significant Accounting Policies, under Chapter titled

" Financial Information" on page 172 of the Red Herring Prospectus.

Overview of Revenue & Expenditure

Our revenue and expenses are reported in the following manner:

Revenue of operations

Our principal component of revenue from operations is generated from sale of goods traded and supply/sales of services.

Other Income

Our other income mainly comprises of interest income, discount received, miscellaneous income, interest on income tax refund.

Expenditure

Our total expenditure primarily consists of purchase of stock in trade, Change in Inventories of work in progress, finished goods and stock in trade, employee benefit expenses, Finance Costs, Depreciation and Amortization expenses and other expenses.

Purchase of stock in trade

Our purchase of stock in trade includes purchase of solar inventory, solar module, solar pump, solar controller, mounting structure, earthing materials like earthing cables, earthing rod, earthing bag etc.

Change in Inventories of work in progress, finished goods and stock in trade

This includes opening and closing inventories of stock in trade i.e. solar inventor, solar module, solar pump, solar controller, mounting structure, earthing materials like earthing cables, earthing rod, earthing bag etc.

Employment Benefit Expenses

Our employee benefit expenses mainly include Salaries, wages and bonus, contribution to provident and other funds, staffwelfare expenses, EPF, ESIC Charges, Director Remuneration, Gratuity Charges

Finance Costs

Our finance costs mainly include Bank Charges, interest, and other finance cost.

Depreciation

Depreciation includes depreciation and amortization of fixed assets.

Other Expenses

It includes Estimate Charges, Insurance Expenses, Audit Fees, Building, Telephone and Internet Expenses, Repairs & Maintenance Charges, Transport Expenses, Travelling & Conveyance expenses, Advertisement & Marketing Expenses, etc.

RESULTS OF OUR OPERATION

( in lakhs)

Particulars	For the year ended March 31, 2024	% of Total Revenue	For the period ended December 31, 2023*	% of Total Revenue*	For the year ended March 31, 2023	% of Total Revenue	For the year ended March 31, 2022	% of Total Revenue
Revenue from operation		99.64%	4,023.07	99.75%	2,401.26	99.48%	3,030.85	99.16%
Other income	19.80	0.36%	9.88	0.25%	12.54	0.52%	25.70	0.84%
Total Revenue	5,454.68	100.00%	4,032.96	100.00%	2,413.80	100.00%	3,056.55	100.00%
Purchase of stock-in-trade	4,771.29	87.47%	3,730.68	92.50%	2,211.35	91.61%	2,751.58	90.02%
Changes in inventories of finished goods, work-in- progress and stock-in-trade	- 910.22	-16.69%	(702.41)	-17.42%	(185.83)	-7.70%	(7.04)	-0.23%
Employee benefits expense	529.47	9.71%	278.54	6.91%	105.23	4.36%	93.31	3.05%
Finance costs	76.43	1.40%	50.97	1.26%	79.86	3.31%	34.65	1.13%
Depreciation and amortisation expenses	7.49	0.14%	6.08	0.15%	10.42	0.43%	10.69	0.35%
Other expenses	214.22	3.93%	106.80	2.65%	153.14	6.34%	125.27	4.10%
Total Expenses	4,688.69	85.96%	3,470.65	86.06%	2,374.18	98.36%	3,008.45	92.84%
Profit before tax extraordinary item	765.99	14.04%	562.30	13.94%	39.62	1.64%	48.10	7.16%
Extraordinary item	-	0.00%	-	0.00%	-	0.00%	-	0.00%
Profit / (Loss) before Tax	765.99	14.04%	562.30	13.94%	39.62	1.64%	48.10	7.16%
Current tax	196.05	3.59%	142.25	3.53%	10.89	0.45%	13.28	0.43%
Deferred tax charge/ (credit)	-2.99	-0.05%	(0.11)	0.00%	(0.14)	-0.01%	(1.16)	-0.04%
Total Tax	193.06	3.54%	142.14	3.52%	10.76	0.45%	12.12	0.40%
Net Profit after tax	572.93	10.50%	420.16	10.42%	28.86	1.20%	35.98	1.18%

*Not Annualised

FISCAL YEAR ENDED MARCH 31, 2024 COMPARED WITH THE FISCAL YEAR ENDED MARCH 31,2023

Revenue from Operations

Revenue from Operations increased from 2,401.26 Lacs in year ended March 31, 2023, to 5,434.88 Lacs in year ended March 31, 2024, with a resultant increase of 126.33% in year ended March 31, 2024, due to strong increase in the revenue from sale of products and sale/supply of services. This was due to a strategic change of focus from government contracts to the private sector, which allowed the company to complete projects more quickly and efficiently.

Other Income

Other Income increased from 12.54 Lacs in year ended March 31, 2023, to 19.80 Lacs in year ended March 31, 2024, with a resultant increase of 57.89% in year ended March 31, 2024, due to significant increase in interest income and discount received.

Purchase of Stock in Trade

Purchase of stock in trade increased from 2,211.35 Lacs in year ended March 31, 2023, to 4,771.29 Lacs in year ended March 31, 2024, with a resultant increase of 115.76% in year ended March 31, 2024, considering strong increase in revenue from operations - sale of products and supply of services.

Changes in inventory

Changes in inventories of finished goods, and stock -in-trade decreased from 185.83 Lacs in year ended March 31, 2023, to 910.22 Lacs in year ended March 31, 2024, with a resultant decrease of 389.81% in year ended March 31, 2024, considering the lower opening stock of FY 2023 and increased closing stock for the FY 2024 to absorb the increase in the number of private contracts undertaken due to strategic change in focus of the Company.

Employee Benefits Expenses

Employee Benefit Expenses increased from 105.23 Lacs in year ended March 31, 2023, to 529.47 Lacs in year ended March 31, 2024, with a resultant increase of 403.16% in year ended March 31, 2024, mainly due to increase in the number of staff employed to absorb the increase in number of projects undertaken which lead to increase in the salaries and wages including bonus along with EPF, ESIC charges, gratuity charges and director remuneration.

Finance Costs

Finance cost decreased from 79.86 Lacs in year ended March 31, 2023, to 76.43 Lacs in year ended March 31, 2024, with a resultant decrease of 4.30% in year ended March 31, 2024, due to decrease in the bank charges and other borrowing charges resulting from decreased utilization of the borrowings.

Depreciation and amortization expenses

Depreciation and amortization decreased from 10.42 Lacs in year ended March 31, 2023, to 7.48 Lacs in year ended March 31, 2024, with a resultant decrease of 28.21% in year ended March 31, 2024, due to decrease in WDV of the fixed assets and no addition in the base of fixed assets.

Other Expenses

Other expenses increased from 153.14 Lacs in year ended March 31, 2023, to 214.22 Lacs in year ended March 31, 2024, with a resultant increase of 39.86 % in year ended March 31, 2024, primarily due to increase in consultancy fees, legal fees, travelling and conveyance expenses, installation and fabrication and other expenses.

Profit before tax

Profit before tax increased from 39.62 Lacs in year ended March 31, 2023, to 765.99 Lacs in year ended March 31, 2024, with a resultant increase of 1,833,34 % in year ended March 31, 2024, considering strong revenue growth due to strategic change in focus from governmental contracts to focusing more on private sector contracts.

Tax Expenses:

Tax expense has increased from 10.76 Lacs in year ended March 31, 2023, to 193.06 Lacs in the year ended March 31, 2024, with a resultant increase of 1,694.24 % in year ended March 31, 2024, considering increase in the profit before tax and eventual tax liabilities.

Profit after Tax:

Net Profit after tax increased from 28.86 Lacs in year ended March 31, 2023, to 572.93 Lacs in year ended March 31, 2024, with a resultant decrease of 1,885.20% in year ended March 31, 2024, considering strong revenue growth due to strategic change in focus from governmental contracts to focusing more on private sector contracts.

REVIEW OF OPERATIONS FOR THE PERIOD ENDED DECEMBER 31, 2023

Revenue from Operations

The revenue generated from operations during the period ending on December 31, 2023, aggregating to 4,023.07 lakhs, representing 99.75% of the total income.

There was marginal reduction in average selling price of 6% of solar panels, however that’s not the sole reason due to which there is major increase in turnover.

There have been 123.33% increase in turnover on annualised basis in the Fiscal 2024 vis-a-vis Fiscal 2023, due to which our indirect cost as a % in relation to turnover decreased resulting in higher PAT margin. Also, our operating margin also increased during the year. During the FY 2024, there was reduction in sales price of the product in which company deals vis a vis reduction in cost price of the modules and invertors which are required to effect the sale. There was major reduction of 21% in cost of solar module. Solar modules cost comprises of 70% of the total cost of the project. Looking at the demand supply scenario in the sector and considering the inelasticity of supply, we passed on part of the benefit received by us to the end consumer and which resulted in attracting some of the customers.

Major reason for significant increase in turnover were:

- Previously, our primary focus was on government tenders and their related departments. However, government business relies heavily on government policies and budgets, making it highly dependent and unpredictable.

Additionally, the government process is lengthy, causing delays in order completion and affecting our ability to quickly finish projects, which in turn delays other orders.

- To address these issues, we shifted our focus from government contracts to the private sector. This change allowed us to complete projects more quickly. We expanded our team and increased our efforts to secure private contracts. As a result, we received and completed several orders on time.

External factors i.e. focus on government policies and incentives, environmental awareness & sustainability trends, consumer behaviour and grid stability. the government has recently introduced supportive policies for private enterprises, which has further helped us in obtaining quick orders and improving our business efficiency.

Other Income

The Other income for the period ended December 31, 2023, amounted to 9.88 lakhs constituting 0.25% of total income.

Purchase of Stock in Trade

The stocks purchased for the period ending on December 31, 2023 amounted to 3,730.68 lakhs, making up

92.50% of the total revenue.

Changes in inventory

The changes in the inventory, (opening stock less closing stock) for the period ending on December 31, 2023 amounted to 702.41 lakhs, making up 17.42% of the total revenue.

Employee Benefits Expenses

The costs associated with employee benefits for the period that concluded on December 31, 2023, aggregating to 278.04 lakhs, making up 6.91% of the total revenue. These employee benefits expenses primarily included salaries, wages, ESIC, PF, staff welfare & bonus, amounting to 258.70 lakhs, as well as director remuneration accounted for 19.84 lakhs.

Finance Costs

The financial expenses for the period that concluded on December 31, 2023, aggregating to 50.97 lakhs, accounting for 1.26% of the total revenue.

Depreciation and amortization expenses

Our depreciation and amortization expenses consist of wear and tear of fixed assets for the period ended December 31, 2023, amounted to 6.08 lakhs constituting 0.15% of total income.

Other Expenses

Our other expenses for the period ended December 31, 2023, amounted to 106.80 lakhs constituting 2.65% of total income.

Profit before tax

Our profit before tax for the period ended December 31, 2023, amounted to 562.30 lakhs constituting 13.94% of total income.

Tax Expenses:

Our tax expenses for the period ended December 31, 2023, were 142.14 lakhs. Our tax expenses were 3.53% of our total income.

Profit after Tax:

Our profit after tax for the period ended December 31, 2023, amounted to 420.16 lakhs constituting 10.42% of total income.

Our profit after tax for the period ended December 31, 2023, amounted to 420.15 lakhs constituting 10.42% of total income.

The calculation of PAT margin (from restated audited financial statements) and change in the same by 10%:

( In Lakhs)

	Restated Financial Statement		Restated Financial Statement
Particulars	FY 2024**	FY 2023	FY 2024**	FY 2023
Revenue from operations	4,023.07	2,401.26	100.0%	100.0%
Purchases and other direct	3,730.68	2,211.35	92.7%	92.1%
Changes in inventories	-702.41	-185.83	-17.5%	-7.7%
Operating Profit	994.8	375.74	24.7%	15.6%
Operating Profit %	24.73%	15.65%	0.0%	0.0%
Other Income	9.88	12.54	0.2%	0.5%
Employee Benefit Expenses	278.54	105.23	6.9%	4.4%
Finance Costs	50.97	79.86	1.3%	3.3%
Depreciation and Amortization Expenses	6.08	10.42	0.2%	0.4%
Other Expenses	106.8	153.14	2.7%	6.4%
PBT	562.29	39.63	14.0%	1.7%
Taxes	142.14	10.76	3.5%	0.4%
PAT	420.15	28.87	10.4%	1.2%

** Period ended December 31, 2023

Further, there have been 123.33% increase in turnover on annualised basis in the Fiscal 2024 vis-a-vis Fiscal 2023, due to which our indirect cost % in relation to turnover decreased resulting in higher PAT margin. Also, our operating margin also increased during the year. Table of the same in relation to majority is attached hereunder:

( in lakhs)

Particulars	Average Price per Watt in FY24	Average Price Per Watt in FY23	% change
Sales (Solar Plant)	39.08	41.47	-6%
Purchase (Solar Module) comprises of 70% of deliverables#	20.50	26.04	21%
Purchase (Solar Invertor) comprises of 10% of deliverables#	4.05	4.17	3%
Other direct cost comprises of 10% of sales price	3.91	4.15	6%
Gross Profit	10.62	7.11	49.36%
Gross Profit %	27.18%	17.15%

#Considering our relationship and experience we could get the better terms. Looking at the demand supply scenario in the sector and considering the inelasticity of supply, we passed on part of the benefit received by us to the end consumer. Therefore, there is an improvement in the operating margin.

During the FY 2024, there was reduction in sales price of the product in which company deals vis a vis reduction in cost price of the modules and invertors which are required to effect the sale. There was major reduction of 21% in cost of solar module. Solar modules cost comprises of 70% of the total cost of the project. As shown in the table above, the above mentioned factors have led to an increase in gross profit of ~10%. Furthermore, even though our turnover have increased fixed expenses (grouped under other expenses in financial statements) are bound to remain the same considering majority of which are overheads. In FY 2023 Other Expenses were aggregating to INR 153.1 Lakhs i.e. 6.38% of Sales and for FY 2024 i.e. the period ended December 31, 2023, Other Expenses were aggregating to INR 106.8 Lakhs i.e. 2.65% of Sales, resulting in increase in our PAT margin as compared to previous year.

The external factors contributing to the improvement in business are focus on government policies and incentives, environmental awareness & sustainability trends, consumer behaviour and grid stability. Further, there was rapid increase in operations and demand in solar sector in recent period and company has doubled its revenue. Based on

Revenue bifurcation shared on DRHP at page no. 112 under Business Chapter, there has been increase of "Revenue generated from Commercial and Industrial Projects" and "Revenue Generated from Trading of Solar Module and Solar Inverter" which contribute 77.71% of total revenue.

We would like to mention that the Company’s revenue is growing in line with the growth in the Industry considering several factors, including increasing demand for green energy sources, favourable government policies, growing environmental awareness and a global move towards sustainable energy solutions.

Further, we would like to reiterate that there was a reduction in the prices for Solar Modules. These benefits availed by the Company of price reduction which considering the demand supply scenario in the Industry. The Company had decided to pass on the part of such benefits to end consumers which led to improvement in the gross margins of the Company. These improvements in the gross margins led to the improvement in the overall PAT and PAT margin as other operating costs reamined inline with the revenue of the Company.

It may be noted that the improvement in margin is reflcted in the Cash Flow from Operating Activities before the changes in working capital and the burden of Working capital in view of the Company’s strategy to keep the inventory handy to complete the projects on time and paying the vendors / suppliers in advance (including for few even before the agreed credit period) to get the priority for supplies. The strategy of the Company is inline with industry’s demand supply scenario and to ensure smooth functioning and ensure timely delivery of projects.

FISCAL YEAR ENDED MARCH 31, 2023 COMPARED WITH THE FISCAL YEAR ENDED MARCH 31,2022

Revenue from Operations

Revenue from Operations decreased from 3,030.85 Lacs in year ended March 31, 2022 to 2,401.26 Lacs in year ended March 31, 2023 with a resultant decrease of 20.77% in year ended March 31, 2023 mainly due to decrease in the revenue from sale of products and services.

Other Income

Other Income decreased from 25.7 Lacs in year ended March 31, 2022 to 12.54 Lacs in year ended March 31,2023 with a resultant decrease of 51.23% in year ended March 31, 2023 due to significant decrease in Forex rate difference and decrease in interest income.

Purchase of Stock in Trade

Purchase of stock in trade decreased from 2,751.58 Lacs in year ended March 31, 2022 to 2,211.35 Lacs in year ended March 31, 2023 with a resultant decrease of 19.63% in year ended March 31, 2023 considering overall reduction in sale of products and services.

Changes in inventory

Changes in inventories of finished goods, and stock -in-trade decreased from 7.04 Lacs in year ended March 31, 2022 to 185.83 Lacs in year ended March 31, 2023 with a resultant decrease of 2538.28% in year ended March 31, 2023 considering the lower base of FY 2022 and increased closing stock for the FY 2023 which got sold in the early part of next financial year.

Employee Benefits Expenses

Employee Benefit Expenses increased from 93.31 Lacs in year ended March 31, 2022 to 105.23 Lacs in year ended March 31, 2023 with a resultant increase of 12.78% in year ended March 31, 2023 mainly due to increase in the staff welfare expenses and salaries and wages including bonus.

Finance Costs

Finance cost increased from 34.65 Lacs in year ended March 31, 2022 to 79.86 Lacs in year ended March 31, 2023 with a resultant increase of 130.46% in year ended March 31, 2023 due to increase in the interest and bank charges and other borrowing charges resulting from increased utilization of the borrowings.

Depreciation and amortization expenses

Depreciation and amortization decreased from 10.69 Lacs in year ended March 31, 2022 to 10.42 Lacs in year ended March 31, 2023 with a resultant decrease of 2.49% in year ended March 31, 2023 due to decreased in WDV of the fixed assets and no addition in the base of fixed assets.

Other Expenses

Other expenses increased from 125.27 Lacs in year ended March 31, 2022 to 153.14 Lacs in year ended March 31, 2023 with a resultant increase of 22.25% in year ended March 31, 2023 primarily due to increase in marketing expenses, office expenses, insurance and repairs & maintenance expenses and other expenses.

Profit before tax

Profit before tax decreased from 48.1 Lacs in year ended March 31, 2022 to 39.62 Lacs in year ended March 31, 2023 with a resultant decrease of 17.64 % in year ended March 31, 2023 considering the lowered sales and continued overheads of the company.

Tax Expenses:

Tax expense has decreased from 12.12 Lacs in year ended March 31, 2022 to 10.76 Lacs in the year ended March 31, 2023 with a resultant decrease of 17.95 % in year ended March 31, 2023 considering reduction in the profit before tax and eventual tax liabilities.

Profit after Tax:

Net Profit after tax decreased from 35.98 Lacs in year ended March 31, 2022 to 28.86 Lacs in year ended March 31, 2023 with a resultant decrease of 19.8% in year ended March 31, 2023 considering reduction in the lowered sale of products and supply of services.

Cash Flow

The table below summaries our cash flows from our Restated Financial Information for the financial years ended on March 31, 2024, March 31, 2023, and March 31, 2022:

( in lakhs)

Particulars	March 31, 2024	March 31,	March 31,
		2023	2022
Net cash (used in)/ Generated from operating activities	(370.83)	(226.50)	71.78
Net cash (used in)/ Generated from investing activities	8.98	(2.94)	21.71
Net cash (used in)/ Generated from finance activities	366.35	212.93	(129.83)
Net increase/ (decrease) in cash and cash equivalents	4.50	(16.51)	(36.33)
Cash and Cash Equivalents at the beginning of the period	42.74	59.25	95.59
Cash and Cash Equivalents at the end of period	47.24	42.74	59.25

INFORMATION REQUIRED AS PER ITEM (II) (C) (I) OF PART A OF SCHEDULE VI TO THE SEBI REGULATIONS:

Unusual or infrequent events or transactions

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

Significant economic changes that materially affected or are likely to affect income from continuing operations

Our business has been subject, and we expect it to continue to be subject to significant economic changes arising from the trends identified above in ‘Factors Affecting our Results of Operations‘ and the uncertainties described in the section entitled "Risk Factors" on page 30 of this Red Herring Prospectus. To our knowledge, except as we have described in this Red Herring Prospectus, there are no known factors which we expect to bring about significant economic changes.

Income and Sales on account of major product/main activities.

Income and sales of our Company on account of major activities derives from sale of goods and supply of services related to solar panel, projects and others.

Whether the company has followed any unorthodox procedure for recording sales and revenues

Our Company has not followed any unorthodox procedure for recording sales and revenues.

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

Our Company’s future costs and revenues can be impacted by an increase in employee costs as the Company looks to hire talent with new skills and capabilities for the solar industry which may be in short supply.

Future relationship between Costs and Income

Our Company’s future costs and revenues will be determined by competition, demand/supply situation, Indian Government Policies, foreign exchange rates and interest rates quoted by banks & others.

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

Increases in our revenues are by and large linked to increases in the volume of business.

Total turnover of each major industry segment in which the issuer company operates

The Company is operating in Solar industry. Relevant industry data, as available, has been included in the chapter titled "Industry Overview" on page 99 of this Red Herring Prospectus.

Status of any publicly announced new products or business segments

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

The extent to which the business is seasonal

Our Company’s business is not seasonal. However, the business of the Company does depend on country’s economy situation and inflation.

Inflation

While we believe inflation has not had any material impact on our business and results of operations, inflation generally impacts the overall economy and business environment and hence could affect us.

Unusual or Infrequent Events or Transactions

Except as described in "Risk Factors" and "Our Business", on pages 30 and 112 respectively of this Red Herring Prospectus, there have beenno events or transactions to our knowledge which may be described as "unusual" or "infrequent".

Any significant dependence on a single or few suppliers or customers

Our Company was significantly dependent on Top 10 customers. For further details refer the chapter titled "Risk factor" and "Our Business" on page 30 and 112 of Red Herring Prospectus.

Competitive Conditions

We do face normal competition from existing and potential competitors which is common for any business. We have, over a period of time, developed certain competitive strengths which have been discussed in section titled "Our Business" on page 112 of this Red Herring Prospectus.

We are a Solar EPC (Engineering, Procurement, and Construction) company specializing in residential solar rooftop, industrial solar power plants, ground-mounted solar power plants, and solar street lights engages in the comprehensive development of diverse solar projects. Also, business operations encompass the extensive trading and distribution of a diverse range of products, including solar panels, inverters, and an array of materials intricately connected to the establishment and functioning of solar power plants. Relevant industry data, as available, has been included in the chapter titled "Industry Overview" on page 99 of this Red Hearing Prospectus.