Yash Optics & Lens Ltd Management Discussions

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations for the period ended September 30, 2023 and financial years ended on 2023, 2022 and 2021 is based on, and should be read in conjunction with, our Restated Financial Statements, including the schedules, notes and significant accounting policies thereto, included in the chapter titled "Restated Financial Statements" beginning on page 179 of this Draft Red Herring Prospectus. Our Restated Financial Statements have been derived from our audited financial statements and restated in accordance with the SEBI ICDR Regulations and the ICAI Guidance Note.

You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in this Draft Red Herring Prospectus. You should also read the section titled "Risk Factors" beginning on page 29 of this Draft Red Herring Prospectus, which discusses a number of factors, risks and contingencies that could affect our financial condition and results of operations. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year are to the twelve-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 Yash Optics & Lens Limited (formerly known as Yash Optics & Lens Private Limited our Company. Unless otherwise indicated, financial information included herein are based on our "Restated Financial Statements" for the period ended September 30, 2023 and financial years ended on 2023, 2022 and 2021 included in this Draft Red Herring Prospectus beginning on page 179 of this Draft Red Herring Prospectus.

Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "Forward Looking Statements" 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.

Overview

Our Company was originally incorporated on July 23, 2010 as "Yash Optics & Lens Private Limited" under the provisions of the Companies Act, 1956 with the Registrar of Companies, Mumbai, Maharashtra. Subsequently our Company was converted into Public Limited Company and name of company was changed from "Yash Optics & Lens Private Limited" to "Yash Optics & Lens Limited" vide fresh certificate of incorporation dated January 29, 2024 issued by the Registrar of Companies, Centralized Processing Centre.

Established in the year 2010, Our Company provides wide array of vision correction solutions. Our Company is primarily engaged in the business of manufacturing, trading, distribution and supplying of comprehensive range of spectacle/optical lenses. We are offering from single vision lenses to advanced progressive lenses, customized progressive lenses to personalized progressives for professionals along with wide range of coatings. Our products are available across the entire range of price points enabling us to serve the entire gamut of customers from economy to the luxury segment. Our company manufacture the lenses based on order and prescription received from the customers. Under the trading space, our company sources the spectacle/optical lenses and market the same under its own brands for further sale through distributors and own retail channels.

Our Company is led by our Promoters, Mr. Tarun Manharlal Doshi, Mr. Dharmendra M Doshi and Mr. Chirag Manharlal Doshi. They are involved in the critical aspects of our business, including expansion, process and plant, finance, sales and marketing etc. We further believe that our market position has been achieved by adherence to the vision of our Promoters and their combined experience in the industry in which our Company operates.

We have started our journey in the year 2002 with trading and supplying spectacle / optical lenses under the name of M/s Yash Optics, a proprietary firm of one of our Promoter, Mr. Chirag Manharlal Doshi. In the year 2007 we have started importing the lenses under M/s Yash Enterprises, a proprietary firm of one of our Promoter, Mr. Dharmendra M Doshi. In the year 2012 we have started manufacturing of prescription lenses under M/s Yash Lenses, a proprietary firm of one of our Promoter, Mr. Tarun Manharlal Doshi.

In order to achieve the synergy benefits from combining the proprietary concern, our Company has acquired M/s Yash Lenses in the year 2021-22 through business transfer agreement dated April 1, 2021 with ongoing concern basis along with all assets and liabilities. Before the said acquisition, our Company was engaged only in trading and distribution of a wide range of optical and spectacle lenses. Post the said acquisition, our Company has started manufacturing of spectacle / optical lenses in its own name which was earlier manufactured by Yash Lenses

Our Company is also appointed by HOYA Lens India Private Limited, as an exclusive distributor to sell, market and distribute the "Pentax" brand of Ophthalmic lenses in India pursuant to agreement dated October 01, 2022 as per the terms and condition laid down in the said agreement.

Our manufacturing facility is situated at 71-C, Government Industrial Estate, Ganesh Nagar, Kandivali (West), Mumbai-

400067, India, is well equipped with required facilities including machinery, other handling equipments to facilitate smooth manufacturing process and easy logistics. We endeavor to maintain safety in our premises by adhering to key safety norms, established through our internal health and safety manual, accompanied by regular safety meetings. Our manufacturing facility is accredited with ISO 9001:2015 for quality management system for the manufacturing, import, export, trading, stockiest and supplier of ophthalmic lens and ophthalmic products.

For the period ended September 30, 2023, our Companys Total Income and Restated Profit after tax were Rs. 1869.16 Lakhs and Rs. 153.83 Lakhs. For the year ended March 31, 2023, our Companys Total Income and Restated Profit after tax were Rs. 3968.81 Lakhs and Rs. 278.43 Lakhs, compared to our Companys Total Income and Restated Profit after tax were

Rs.2975.03 Lakhs and Rs.234.40 Lakhs respectively, over previous year ended i.e. March 31, 2022. For the year ended

March 31, 2021, our Companys Total Income and Restated Profit after tax were Rs. 1496.22 Lakhs and Rs. 42.30 Lakhs respectively.

Key Performance Indicators of our Company

( in Lakhs, otherwise mentioned)

Key Financial Performance	September 30, 2023	March 31, 2023	March 31, 2022	March 31, 2021
Revenue from Operations (1)	1,866.32	3,968.81	2,975.03	1,496.22
EBITDA (2)	691.27	1,244.65	1,021.80	205.54
EBITDA Margin (%) (3)	37.02%	31.36%	34.35%	13.74%
PAT	422.25	806.58	681.67	106.31
PAT Margin (%) (4)	22.62%	20.32%	22.91%	7.11%
Return on equity (%) (5)	18.10%	53.48%	89.02%	28.47%
Return on capital employed (%) (6)	10.38%	30.28%	48.91%	15.50%
Debt-Equity Ratio (times) (7)	1.05	0.57	0.36	1.37
Net fixed asset turnover ratio (times) (8)	1.91	6.61	13.37	136.89
Current Ratio (times) (9)	3.39	7.30	2.19	6.49
Net profit ratio (%) (10)	22.62%	20.32%	22.91%	7.11%
Revenue split between domestic and exports
Domestic Market	1,719.74	3,590.24	2,682.53	1,496.22
Export Market	146.58	378.57	292.50	-
Domestic Market (%)	92.15%	90.46%	90.17%	100%
Export Market (%)	7.85%	9.54%	9.83%	-

*As certified by Peer review Auditor by way of their certificate dated January 31, 2024.

Notes:

11) Revenue from operation means revenue from sale of our products

12) EBITDA is calculated as Profit before tax + Depreciation + Finance Costs Other Income 13) EBITDA Margin is calculated as EBITDA divided by Revenue from Operations 14) PAT Margin is calculated as PAT for the period/year divided by revenue from operations

15) Return on Equity is calculated by comparing the proportion of net income against the amount of average shareholder equity 16) Return on Capital Employed is calculated as follows: Profit before tax + Finance Costs Other Income (EBIT) divided by (Tangible Net Worth + Total Debt + Deferred Tax Liabilities) 17) Debt to Equity ratio is calculated as Total Debt divided by equity 18) Net fixed asset turnover ratio is indicator of the efficiency with which our company is able to leverage its assets to generate revenue from operations. 19) Current Ratio is calculated by dividing Current Assets to Current Liabilities 20) Net profit ratio is calculated by dividing Net Profit to Revenue from Operations

Explanation for KPI metrics

Key Financial Performance	Explanations
Financial KPIs
Revenue from Operations	Revenue from Operations is used by our management to track the revenue profile of the business and in turn helps to assess the overall financial performance of our Company and volume of our business
EBITDA	EBITDA provides information regarding the operational efficiency of the business

 

EBITDA Margin	EBITDA Margin (%) is an indicator of the operational profitability and financial performance of our business
PAT	Profit after tax provides information regarding the overall profitability of the business
PAT Margin (%)	PAT Margin (%) is an indicator of the overall profitability and financial performance of the business
Return on equity (%)	Return on equity (ROE) is a measure of financial performance
Return on capital employed (%)	Return on capital employed is a financial ratio that measures our companys profitability in terms of all of its capital
Debt-Equity Ratio (times)	Debt / Equity Ratio is used to measure the financial leverage of the Company and provides comparison benchmark against peers
Net fixed asset turnover ratio (times) (8)	Net fixed asset turnover ratio is indicator of the efficiency with which our company is able to leverage its assets to generate revenue from operations
Current Ratio (times)	The current ratio is a liquidity ratio that measures our companys ability to pay short-term obligations or those due within one year
Net profit ratio (%)	Net Profit Margin (also known as "Profit Margin" or "Net Profit Margin Ratio") is a financial ratio used to calculate the percentage of profit our company produces from its total revenue

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of Statement of Significant Accounting Policies, please refer to the chapter titled "Restated Financial Statements" beginning on page 179 of this Draft Red Herring Prospectus.

Factors Affecting our Results of Operations

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factors" beginning on page 29 of this Draft Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

Any slowdown or shutdown in our manufacturing operations;

Inability to accurately manage our inventory, this may adversely affect our goodwill and business, financial condition and results of operations;

Dependency on third-party transportation providers for the supply of raw materials and delivery of our finished products;

Dealy in orders placing for the purchase of plant and machinery;

Failure to acquire new consumers or fail to do so in a cost-effective manner, we may not be able to increase revenue or maintain profitability;

Our ability to attract and retain qualified personnel;

Restrictions on import and an increase in shipment cost may adversely impact our business, cash flows and results of operations;

Orders placed by customers may be delayed, modified or cancelled, which may have an adverse effect on our business, financial condition and results of operations;

Conflict of interests between our Company and other venture or enterprises promoted by our promoter or directors;

Volatility of loan interest rates and inflation;

Natural calamities, climate change and health epidemics could adversely affect the Indian economy and our business, financial condition, and results of operations;

Changing laws, rules and regulations and legal uncertainties, including adverse application of tax laws, may adversely affect our business, financial condition and results of operations;

Our inability to maintain or improve our brand image;

A slowdown in economic growth in India could cause our business to suffer;

Global economic conditions, especially in the geographies we cater to, which may have an adverse effect on our business, financial condition, results of operations and prospects;

RESULTS OF OUR OPERATION

( in lakhs)

	For the			For The Year Ended 31st March
Particulars	Period ended September 30, 2023	% of Total Revenue	2023	% of Total Revenue	2022	% of Total Revenue	2021	% of Total Revenue
Revenue:
Revenue from Operations	1866.32	99.85%	3968.81	99.71%	2975.03	99.63%	1496.22	99.87%
Other income	2.84	0.15%	11.58	0.29%	11.01	0.37%	2.02	0.13%
Total revenue	1869.16	100.00%	3980.39	100.00%	2986.04	100.00%	1498.24	100.00%
Expenses:
Cost of Material Consumed	453.34	24.25%	1070.74	26.90%	917.25	30.72%	-	-
Purchase of Stock in Trade	198.88	10.64%	805.82	20.24%	524.95	17.58%	1159.5	77.39%
Change in inventory of
Finished Goods, Semi-
	(50.23)	(2.69%)	(414.89)	(10.42%)	(370.61)	(12.41%)	(136.70)	(9.12%)
Finished Goods & Stock in
Trade
Employees Benefit Expenses	290.97	15.57%	611.38	15.36%	497.74	16.67%	147.44	9.84%
Finance costs	76.09	4.07%	101.65	2.55%	55.56	1.86%	50.46	3.37%
Depreciation and
	41.67	2.23%	69.57	1.75%	61.18	2.05%	8.49	0.57%
Amortization
Other expenses	282.09	15.09%	651.12	16.36%	383.89	12.86%	120.44	8.04%
Total Expenses	1292.81	69.18%	2895.39	72.74%	2069.96	69.32%	1349.63	90.08%
Profit before exceptional and extraordinary items and tax	576.35	30.83%	1085.01	27.26%	916.07	30.68%	148.61	9.92%
Exceptional Items	-	-	-	-	-	-	-	-
Profit before extraordinary items and tax	576.35	30.83%	1085.01	27.26%	916.07	30.68%	148.61	9.92%
Extraordinary items	-	-	-	-	-	-	-	-
Profit before tax	576.35	30.83%	1085.01	27.26%	916.07	30.68%	148.61	9.92%
Tax expense:
Current tax	143	7.65%	274.65	6.90%	234.2	7.84%	45.71	3.05%
Earlier year Tax	-	-	-	-	0.4	0.01%	0	0.00%
Deferred Tax	10.83	0.58%	3.78	0.09%	(0.20)	(0.01%)	(3.41)	(0.23%)
Net Total Tax Expenses	153.83	8.23%	278.43	7.00%	234.4	7.85%	42.3	2.82%
Profit /(Loss) for the period from continuing operations	422.52	22.60%	806.58	20.26%	681.67	22.83%	106.31	7.10%

Review of Restated Financials,

Key Components of Companys Profit and Loss Statement

Revenue from operations: Revenue from operations mainly consists from Sales of products.

Other Income: Other Income Consist of Interest Income, Discount Received & Other Misc. Incomes etc.

Expenses: Companys expenses consist of, Cost of Material Consumed, Changes in Inventories of Finished Goods WIP & Stock in Trade, Depreciation Expenses, Employee Benefit Expenses, Finance Cost & Other Expenses.

Cost of Material Consumed: Cost of Material Consumed consist of Opening Stock, Purchase of Raw Material, Direct Expenses & Closing Stock.

Purchase of Stock in Trade: Purchase of Stock in Trade consist of purchase of trading goods.

Changes in inventories of Finished Goods, Semi Finished Goods & Stock in Trade: Changes in inventories of Finished Goods, Semi Finished Goods & Stock in Trade consist of difference between opening & closing Value of Stock.

Employee Benefits Expense: Employee benefit expenses includes Salaries and Wages, Directors Remuneration & Contribution to Statutory Funds, Gratuity Expenses etc.

Finance Cost: Finance Cost includes Interest paid on borrowings & Bank Charges.

Depreciation and Amortization Expense: We recognize Depreciation and Amortization expense on a SLM Basis as per the rates set forth in the Companies Act, 2013/ Companies Act, 1956, as applicable.

Other Expenses: Other expenses include Rent, Repair & Maintenance. Commission Expenses, Travelling & Conveyance etc.

Review of Operations for the period ended on September 30, 2023:

Revenue from Operation

Revenue from operations for the period ended on September 30, 2023 amounting to 1866.32 lakhs represents 99.85% of Total Revenue.

Other Income

Other Income consisting of Discount Received, Interest Income & Duty Drawback amounting to 2.84 Lakhs represents

0.15% of Total Revenue.

Cost of Material Consumed

Cost of Material Consumed for the period ended on September 30, 2023 amounting to 453.34 lakhs represents 24.25% of

Total Revenue.

Purchase of Stock in Trade

Purchase of Stock in Trade for the period ended on September 30, 2023 amounting to 198.88 lakhs represents 10.64% of Total Revenue.

Changes in Inventories of Finished Goods, Semi Finished Goods & Stock in Trade

Changes in Inventories of Finished Goods, Semi Finished Goods & Stock in Trade amounting to (50.23) Lakhs represents (2.69) % of Total Revenue.

Employee Benefit Cost

Employee benefit expenses includes Salaries and Wages, Directors Remuneration & Employee Insurance, Gratuity Expenses etc amounting to 290.97 Lakhs represents 15.57% of Total Revenue.

Finance Cost

Finance Cost includes Interest on Borrowings & Bank Charges amounting to 76.09 Lakhs represents 4.07% of Total Revenue.

Depreciation and Amortization

Depreciation is charged on WDV method amounting to 41.67 Lakhs represents 2.23% of Total Revenue

Other Expenses

Other expenses include Custom clearing and Forwarding Charges, Chemical Testing Expenses Rent, Repair & Maintenance.

Commission Expenses, Travelling & Conveyance etc. amounting to 282.09 Lakhs represents 15.09% of Total Revenue.

Profit Before Tax

The Profit before tax for the period ended on September 30, 2023 was 576.35 Lakhs representing 30.83% of Total Revenue.

Tax Expenses

Tax Expenses consisting of Current Tax & Deferred Tax for the period ended on September 30, 2023 was 143 Lakhs and 10.83 Lakhs respectively, representing 7.65% and 0.58% respectively of Total Revenue.

Profit After Tax

The Profit after tax for the period ended on September 30, 2023 was 422.52 Lakhs representing 22.60% of Total Revenue.

Fiscal 2023 compared with Fiscal 2022

Revenue from Operation

Revenue from operations had increased by 33.40% from 2975.03 lakhs in Fiscal 2022 to 3968.81 lakhs in Fiscal 2023.

This increase was due to increase in sales of products during the year. Since in the year 2023 company has increased its business promotion and marketing operations due to which the order book of the company has increased & in result the revenue of the company has also increased in year 2023 as compared to the fiscal year 2022.

Other Income

Other income had increased from 11.01 lakhs in Fiscal 2022 to 11.58 lakhs in Fiscal 2023 due to increase in Interest Income and Discount and Rebates received. The companys interest income in the year 2022 was 0.73 Lakhs which increased in the year 2023 to 2.03 Lakhs. Further in the year 2022 the company has received discount and rebates amounting to 4.57 Lakhs which got increased to 6.72 Lakhs in the year 2023.

Cost of Material Consumed

Cost of Material Consumed had increased by 16.73% from 917.25 lakhs in Fiscal 2022 to 1070.74 lakhs in Fiscal 2023.

This increase was due to increase in sales during the year.

Purchase of Stock in Trade

Purchase of Stock in Trade had increased by 53.50% from 524.95 lakhs in Fiscal 2022 to 805.82 lakhs in Fiscal 2023.

This increase was due to increase in sales of trading products during the year.

Changes in Inventories of Finished Goods, Semi Finished Goods & Stock in trade

Changes in Inventories of Finished Goods, Semi Finished Goods & Stock in Trade had increased by 11.95% from (370.61) lakhs in Fiscal 2022 to (414.89) lakhs in Fiscal 2023. This increase was primarily due to higher closing inventories during the year. In the year 2023 we have higher order book which will scheduled to be delivered after March 31, 2023. Since delivery was due after March 31, 2023, our closing Inventories of Finished goods & Semi Finished goods got increased & due to this our changes in Inventories of Finished goods, Semi Finished Goods & Stock in Trade got increased.

Employee Benefit Expenses

Employee benefit expenses had increased by 22.83% from 497.74 lakhs in Fiscal 2022 to 611.38 lakhs in Fiscal 2023. This increase was primarily due to increase in salary & wages from 220.91 Lakhs in year 2022 to 282.76 Lakhs in year 2023, increase in Managerial Remuneration from 252.00 Lakhs in year 2022 to 279.00 Lakhs in year 2023 & increase in the staff welfare expenses from 8.89 lakhs in year 2022 to 18.33 Lakhs in year 2023.

Finance Cost

Finance Cost had increased by 82.96% from 55.56 lakhs in Fiscal 2022 to 101.65 lakhs in Fiscal 2023. This increase was primarily due to increase in Interest on borrowings during the year.

Depreciation and Amortization Expenses

Depreciation had increased by 13.71% from 61.18 lakhs in Fiscal 2022 to 69.57 lakhs in Fiscal 2023. Since in the year 2023 company has made capex of 399.04 Lakhs, due to which Depreciation has been increased significantly.

Other Expenses

Other expenses had increased by 69.61% from 383.89 lakhs in Fiscal 2022 to 651.12 lakhs in Fiscal 2023. The increase was primarily due to decrease in Poer and Fuel, Travelling and Conveyance, Printing Charges, Postage & Courier, Selling and distribution expenses etc. In the year 2023, company has to incur additional Advertisement & Sales promotion expenses to increase its revenue from operation which got increased from 12.96 Lakhs to 88.60 lakhs in the year 2023. Furthermore, Commission expenses has increased from 59.94 lakhs in the year 2022 to 93.32 lakhs in the year 2023, Rent has increased form 53.56 Lakhs in the year 2022 to 98.50 Lakhs in the year 2023.

Tax Expenses

The Companys tax expenses had increased by 44.03 lakhs from 234.40 lakhs in the Fiscal 2022 to 278.43 lakhs in Fiscal 2023. This was primarily due to increase in current tax expenses during the year which got increased from 234.20 Lakhs in the year 2022 to 274.65 lakhs in the year 2023 & increase in Deferred Tax Expenses from (0.20) Lakhs in the year 2022 to 3.78 lakhs in the year 2023.

Profit after Tax

After accounting for taxes at applicable rates, our Company reported a net profit of 806.58 lakhs in Fiscal 2023 as compared to a net profit of 681.67 lakhs in Fiscal 2022 which got increased due to higher revenue from operation during the year.

Fiscal 2022 compared with Fiscal 2021

Revenue from Operation

Revenue from operations had increased by 98.84% from 1496.22 lakhs in Fiscal 2021 to 2975.03 lakhs in Fiscal 2022.

This increase was due to increase in sales of products during the year. Since in the year 2022 company has increased its business promotion and marketing operations due to which the order book of the company has increased & in result the revenue of the company has also increased in year 2022 as compared to the fiscal year 2021.

Other Income

Other income had increased by 445.05% from 2.02 lakhs in Fiscal 2021 to 11.01 lakhs in Fiscal 2022 due to receipt of Discount and Rebates and Duty Drawback of 4.57 Lakhs and 3.06 Lakhs respectively, in the Fiscal 2022 which were Nil in Fiscal 2022.

Cost of Material Consumed

Cost of Material Consumed in the Fiscal 2022 was 917.25 Lakhs. This was due to company has started the manufacturing unit during the year 2022.

Purchase of Stock in Trade

Purchase of Stock in Trade had decreased by 54.73% from 1159.50 lakhs in Fiscal 2021 to 524.95 lakhs in Fiscal 2022. This was primarily due to addition of manufactured goods in the companys product line.

Changes in Inventories of Finished Goods, Semi Finished Goods & Stock in trade

Changes in Inventories of Finished Goods, Semi Finished Goods & Stock in Trade had increased by 171.11% from (136.70) lakhs in Fiscal 2021 to (370.61) lakhs in Fiscal 2022. This increase was primarily due to higher closing inventories during the year. This increase was primarily due to higher closing inventories during the year. In the year 2022 we have higher order book which will scheduled to be delivered after March 31, 2022. Since delivery was due after March 31, 2022, our closing Inventories of Finished goods got increased & due to this our changes in Inventories of Finished goods, Semi Finished Goods & Stock in Trade got increased.

Employee Benefit Expenses

Employee benefit expenses had increased by 237.59% from 147.44 lakhs in Fiscal 2021 to 497.74 lakhs in Fiscal 2022. This increase was primarily due to increase in salary & wages from 66.44 Lakhs in year 2021 to 220.91 Lakhs in year 2022 & increase in Managerial Remuneration from 67.00 Lakhs in year 2021 to 252.00 Lakhs in year 2022.

Finance Cost

Finance Cost had increased by 10.11% from 50.46 lakhs in Fiscal 2021 to 55.56 lakhs in Fiscal 2022. This increase was primarily due to increase in Bank Charges and borrowings in Fiscal 2022.

Depreciation and Amortization Expenses

Depreciation had increased by 620.61% from 8.49 lakhs in Fiscal 2021 to 61.18 lakhs in Fiscal 2022. Since in the year company has made capex amounting to 488.36 Lakhs so that the same has been increased.

Other Expenses

Other expenses had increased by 218.74% from 120.44 lakhs in Fiscal 2021 to 383.89 lakhs in Fiscal 2022. The increase was primarily due to increase in etc. Further increase in Insurance expenses, Water Charges, Office Expenses Travelling

Expenses, Postage and Courier charges, Rates & Taxes etc. Further Repair and maintenance expenses has increased from 9.50 Lakhs in Fiscal 2021 to 63.62 lakhs, Printing Charges from 2.48 lakhs in Fiscal 2021 to 34.88 lakhs, Postage Charges from 15.04 Lakhs in Fiscal 2021 to 33.87 Lakhs in Fiscal 2022 and Rent Expenses from 28.05 Lakhs in Fiscal 2021 to 53.56 Lakhs in Fiscal 2022.

Tax Expenses

The Companys tax expenses had increased by 192.10 lakhs from 42.30 lakhs in the Fiscal 2021 to 234.40 lakhs in Fiscal 2022. This was primarily due to increase in Current Tax Expenses from 45.71 Lakhs in Fiscal 2021 to 234.20

Lakhs in Fiscal 2022. The Current Tax Expenses has been increased due to higher profit during the year.

Profit after Tax

After accounting for taxes at applicable rates, our Company reported a net profit of 681.67 lakhs in Fiscal 2022 as compared to a net profit of 106.31 lakhs in Fiscal 2021. The company has made higher profit after tax in the fiscal 2022 due to higher revenue from operations during the year.

Cash Flows

( in lakhs)

Particulars	September 30, 2023	March 31, 2023	March 31, 2022	March 31, 2021
Net Cash from Operating Activities	471.26	(230.82)	771.50	(5.33)
Net Cash from Investing Activities	(1,737.42)	(397.02)	(487.63)	(4.13)
Net Cash from Financing Activities	1,278.60	557.25	(249.62)	45.53

Cash Flows from Operating Activities

Net cash from operating activities for period ended September 2023 was at 471.26 lakhs as compared to the Profit Before Tax at 576.08 lakhs. This was primarily due to adjustments against, changes in Working Capital & Income Tax Paid.

Net cash from operating activities for fiscal 2023 was at (230.82) lakhs as compared to the Profit Before Tax at 1085.01 lakhs while for fiscal 2022 net cash from operating activities was at 771.50 lakhs as compared to the Profit Before Tax at 916.07 Lakhs. This was primarily due to adjustments against, changes in Working Capital & Income Tax Paid.

Net cash from operating activities for fiscal 2022 was at 771.50 lakhs as compared to the Profit Before Tax at 916.07 lakhs while for fiscal 2021 net cash from operating activities was at (5.33) lakhs as compared to the Profit Before Tax at

148.61 Lakhs. This was primarily due to adjustments against adjustments against, changes in Working Capital & Income Tax Paid.

Cash Flows from Investment Activities

For the period ended September 2023, the net cash invested in Investing Activities was (1737.42) lakhs. This was mainly on account of Purchases of Fixed Assets.

In fiscal 2023, the net cash invested in Investing Activities was (397.02) lakhs. This was mainly on account of Purchases of Fixed Assets.

In fiscal 2022, the net cash invested in Investing Activities was (487.63) lakhs. This was mainly on account of Purchases of Fixed Assets.

In fiscal 2021, the net cash invested in Investing Activities was (4.13) lakhs. This was mainly on account of Purchases of Fixed Assets.

Cash Flows from Financing Activities

For the period ended September 2023, the net cash from financing activities was 1278.60 lakhs. This was on account of proceeds from Long Term & Short-Term Borrowings.

In fiscal 2023, the net cash from financing activities was 557.25 lakhs. This was on account of proceeds from Long Term

& Short-Term Borrowings.

In fiscal 2022, the net cash from financing activities was (249.62) lakhs. This was on account of proceeds from Long Term & Short-Term Borrowings.

In fiscal 2021, the net cash from financing activities was 45.53 lakhs. This was on account of proceeds from Long Term &

Short-Term Borrowings.

Information required as per Item (II) (C) (iv) of Part A of Schedule VI to the SEBI Regulations:

An analysis of reasons for the changes in significant items of income and expenditure is given hereunder:

1. Unusual or infrequent events or transactions

There has not been any unusual trend on account of our business activity. There are no Unusual or infrequent events or transactions in our Company. The transactions are as per usual business operations.

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

Except for any change in economic policy affecting our industry in India, there are no other significant economic changes that may materially affect or 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 sales, revenue or income from continuing operations.

Apart from the risks as disclosed under Section "Risk Factors" beginning on page 29 in the Draft Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues

Our Companys future costs and revenues will be determined by growth of industry in which we operate.

5. Increases in net sales or revenue and Introduction of new products or increased sales prices

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

6. Status of any publicly announced New Products or Business Segment

Our Company has not announced any new Product.

7. Seasonality of business

Our Companys business is not seasonal.

8. Dependence on few customers/ clients

Our Company has a customer base across India and overseas. Based on the nature of our business, we are not depending on few customers. The percentage of contribution of our Companys Top Customers/Clients is as follows:

(Figures in percentages)

Particulars	September 30, 2023		2022-23		2021-22		2020-21
	in Lakhs	%	in Lakhs	%	in Lakhs	%	in Lakhs	%
Top 10	587.04	31.45	990.43	24.96	701.10	23.57	397.24	26.55
Top 20	757.20	40.57	1230.97	31.01	934.18	31.40	516.09	34.49
Top 30	853.14	45.71	1389.27	35.00	1038.56	34.91	516.96	37.56

9. Competitive conditions

Competitive conditions are as described under the Chapters titled "Industry Overview" and "Our Business" beginning on pages 101 and 123, respectively of the Prospectus.

10. Details of material developments after the date of last balance sheet i.e. September 30, 2023

After the date of last Balance sheet i.e., September 30, 2023, the following material events have occurred after the last audited period.

The Authorized Share Capital was increased to 25,00,00,000 /- divided into 2,50,00,000 Equity Shares of 10/- each vide Shareholders Resolution dated December 18, 2023.

The members of our Company approved the bonus issue of 1,77,00,000 Equity Shares of face value of Rs. 10/- eachin the ratio of 1770:1 i.e., 1770 Bonus Equity Shares for every 1Equity Shares in the EOGM held on December 18, 2023.

Allotment of Right issue of 4,94,000 Equity Shares having face value of Rs. 10/- each in the EOGM held on January 15, 2024.

The members of our Company approved the conversion of the Company to public limited Company in the EOGM held on January 16, 2024 and the name of our Company was changed from "Yash Optics & Lens Private Limited" to "Yash Optics & Lens Limited" vide fresh certificate of incorporation dated January 29, 2024.

The Board of our Company has approved to raise funds through Initial Public Offering in the board meeting held on January 30, 2024.

The members of our Company approved proposal of Board of Directors to raise funds through initial public offering in the EOGM held on January 31, 2024.