Transcript of 36th Annual General Meeting

Management

1. Mr. Krishna Kumar Choudhary – Chairman & Whole-Time Director

2. Mr. Sureshkumar Pansari – Vice-Chairman & Whole-Time Director

3. Mr. Kapal Suresh Pansari – Managing Director

4. Mr. Keshav Krishna Kumar Choudhary – Whole-Time Director

5. Ms. Drushti Desai – Independent Director & Chairperson of Audit Committee

6. Mr. Yazdi Dandiwala – Independent Director

7. Mr. Anandkumar Ladsariya – Independent Director & Chairman of Nomination and

Remuneration Committee

8. Dr. Anil Khandelwal – Independent Director & Chairman of Stakeholders’

Relationship Committee

9. Mr. Rajesh Goenka – Chief Executive Officer

10. Mr. Himanshu Kumar Shah – Chief Financial Officer

Mr. Navin Agarwal – VP – Accounts & Finance

11. Ms. Hinal Shah – Company Secretary

12. Mr. Tejas Vyas – Compliance Officer

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Himanshu Kumar Shah (CF0): Good morning, shareholders. Welcome to the 36th Annual

General Meeting, AGM of Rashi Peripherals Limited. Now I request Mr. Krishna Kumar Choudhary, our Chairman and Whole-Time Director of the company to take the

Chair to conduct this meeting.

Krishna Kumar Choudhary

Good morning, my dear shareholders. It is a pleasure to welcome you to this 36th Annual General Meeting of Rashi

Peripherals Limited for the financial year ended in 2025 and second AGM after the listing. The requisite quorum is being present. I declare the meeting is validly entitled, constituted. I therefore call the meeting to order. The statutory registers and other required documents, as mentioned in notice of this AGM are open for inspection by the members in pursuant to provisions of Companies Act

2013. Introduction of board of directors so I am glad to introduce to my board of directors present here. I have Mr.

Kapal Pansari, Managing Director is present here and Mr.

Keshav Krishna Kumar Choudhary, Whole-Time Director, who is also present physically here.

I have Mr. Suresh Pansari, Whole-Time Director and Vice

Chairman, who is present virtually. I also introduce Ms.

Drushti Desai, Mr. Yazdi Dandiwala, Mr. Anandkumar

Ladsariya and Dr. Anil Khandelwal who are also present virtually. I further introduce my KMP. I have Mr. Rajesh

Goenka, who is present here. He is CEO of the company. I have Mr. Himanshu Shah, CFO of the company, is present here. I have Mr. Navin Agarwal, he is VP - Accounts and

Finance, is present here. And I have Tejas Vyas, Compliance

Officer, is present here. I have Hinal Shah, Company

Secretary, who is present virtually. I would further like to state the representatives of joint statutory auditors of the company, Mr. Bhawik Madrecha of M/s Pipara and

Company, LLP, and Ms. Pallavi Sharma of M/s. Deloitte

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Haskins and Sells LLP, Secretarial Auditor of the company,

Ms. Ragini Chokshi, representative of M/s Ragini Chokshi &

Company, Company Secretaries, are also present in the meeting through video conferencing. The company has appointed Ms. Anuja Parikh from Parikh & Associates, practicing company secretary as the scrutinizer for this meeting to scrutinize the remote e-Voting process before and during the AGM in a fair and transparent manner. I further inform you all that the results of e-Voting will be declared to stock exchanges along with the report of the scrutinizer and will be uploaded on the company's website within security timelines. I am glad to welcome all the shareholders to this Annual General Meeting. My fellow directors, esteemed colleagues, and valued investors, shareholders it is a privilege to address you today as we stand at a pivotal moment looking back at a year of remarkable achievements and forward to a future brimming and potential. Our theme in this annual report is expanding reach, delivering values is not a merely slogan it is a very core of our strategy and the compass guiding our journey. In a global macro scenario, marked by a significant shift in trade policies and geopolitical dynamics, it would have faced its share of uncertainties. Yet, amidst this turbulence, India's economy continues to stand out as a beacon of resilience and growth.

Our nation's growth trajectory, fueled by a young, dynamic population and robust domestic consumption, presents an unparalleled opportunity. As a key player in India's ICT landscape, Rashi Peripherals is perfectly positioned to contribute to and benefit from this incredible growth history. We have always prided ourselves on being a world- class ICT hardware solution provider. Our strength lies in our ability to deliver a comprehensive suite of products and services ranging from pre-sales activities, consultation

Page 3 of 23 design, technical support, marketing services, credit solutions, and warranty management services. It is the result of our sustained strategic investment in strengthening our infrastructure network, as well as the state-of-the-art CRM platform that empower us to serve our partners and customers with unmatched efficiency, ensuring we remain in the forefront of the industry. The

Indian IT hardware sector is undergoing a profound transformation. We are no longer just about personal computers and peripherals company. The market is now being driven by a new wave of technologies. The revolutionary power of AI, the interconnected world of IoT, the ultra-fast speed of 5G, and the scalable infrastructure of cloud computing Rashi Peripherals is not just a distributor of these technologies. We are the enablers, bringing cutting- edge solutions from global leaders to every corner of India.

Our commitment to expanding our reach is best exemplified by the momentous opening of our 52nd branch in Srinagar. This milestone is a testament to our resolve to penetrate deeper into the nation's heartland ensuring that our partners, regardless of their location, have access to the same world-class products and services. This unwavering focus on excellence has not gone unnoticed. We were deeply honored to receive two prestigious accolades at the

NVIDIA GTC 2025 AI Conference at USA, Networking

Distributor of the Year 2024, and Distributor of the Year

2024. These awards are a powerful validation of our strategic partnership with NVIDIA and our relentless pursuit of operational excellence. They represent the hard work of every single team member and the trust our partners place in us. As we move forward, we will continue to focus on expanding our reach to new markets and enhancing the value we deliver to our partners. Our journey is one of collaboration, innovation, and unwavering commitment to excellence. Thank you. Now, I would like to

Page 4 of 23 hand over the proceedings to our esteemed Managing

Director, Mr. Kapal Pansari, for sharing various information.

Kapal Suresh Pansari

Good morning, everyone, our esteemed shareholders, partners, and colleagues. It is with great pleasure and a deep sense of pride that I welcome you to the Annual

General Meeting of Rashi Peripherals Limited. The fiscal year that has concluded has been a period of significant achievement and strategic consolidation of our organization. It serves as a powerful testament to our collective resilience and steadfast movement in a rapidly evolving and competitive technology landscape. We closed our FY2025 with a strong 24.14% year-on-year growth in revenue from operations, 17.45% rise in EBITDA, and a healthy 45.78% jump in profit after tax, a clear indicator of our ability to deliver sustainable value creation for our stakeholders.

Our journey over the past 36 years has been, has seen us evolve from a single branch operations into one of the largest and most widespread ITC distribution networks in

India. Today, with 52 branches, 68 warehouses, and a comprehensive network spanning over 700 locations, we are a key enabler in India's digital transformation. Our partnership with 70 global technology brands and service over 10,000 customers nationwide reinforces a pivotal role in the industry. Last fiscal, we achieved several landmark accomplishments. We are particularly proud to have successfully executed India's largest and first AI-led data center server order, a milestone that highlights our strategic focus on the high-growth enterprise segment and our vision of advancing India's data center infrastructure development. Our dedication to enhancing the customer experience is relentless. This allows us to efficiently identify and capitalize on new opportunities across a wide array of

Page 5 of 23 customer segments and end-use verticals. We are particularly focused on fast-growing categories that are reshaping the market, including the latest premium consumer devices, advanced visual displays and innovative

AI-powered personal computers. By consistently putting the customer first, we are well-positioned to drive growth and expand our influence in dynamic and evolving markets.

Our team finished a strong fiscal by continuing to focus on our long-term strategy, setting the stage for FY2025-2026 by encompassing three principles for the future. First, continue to focus on growth and invest in technologies that outpaces the industry. Second, identify technology trends that will become mainstream in the future. And third, the agility to take decisions faster. None of these would have been possible without the firm dedication of our employees, the enduring trust of our customers, the steadfast support of our global technology partners, and the confidence of you, our esteemed shareholders. I extend my deepest gratitude to each and every one of you for being an integral part of the remarkable journey. As we look to the future, our strategy is clear and our resolve is strong. We will continue to innovate, expand, and solidify our market position to play a pivotal role in India's digital transformation. Thank you. And I now would like to hand over the proceedings to our esteemed Chairman and

Whole-Time Director, Mr. Krishna Kumar Choudhary.

Krishna Kumar Choudhary

Thank you, Kapal. So, the notice convening the 36th AGM of and the annual report for the financial year ended March 31

2025, along with financial statements are already circulated electronically to the members of the company. Therefore, I take the notice to this meeting as read. The independent statutory auditors’ report on the audited standalone and consolidated financial statements of the company for the financial year ended March 31, 2025 do not contain any

Page 6 of 23 qualification reservation adverse remark or disclaimer accordingly the said report is not required to be read out as per Companies Act 2013. Further, as regards the observation made by the secretarial auditor in their secretarial audit report for financial year ended March 31,

2025 is self-explanatory. I would like to inform you that pursuant to provision of Section 108 of the Companies Act

2013, read with Rule 20 of the Companies, Management and Stated Rules 2014, and Regulation 44 of SEBI, Listing

Obligation and Disclosure Requirements, Regulation 2015, and SEBI and MCA Circulars as amended from time to time.

The company is providing facility of remote e-Voting facility and e-Voting facility during the meeting to its members in respect of the business to be transacted at this AGM. For this purpose, the company has appointed National

Depository Securities Limited NSDL for facilitating cast of vote through electronic means as the authorized e-Voting agency. I would like to inform you that only those shareholders who are present in the AGM through VC

OAVM facility and have not casted their vote on the resolution through remote e-Voting and are otherwise not barred from doing so, shall be eligible to vote through e-Voting system available during the AGM. I now move the resolutions related to item number 1 to 7. Item number one, adoption of audited standalone and consolidated financial statements as an ordinary resolution. Item number one, sub-one, to consider and adopt the audited standalone financial statements of the company for the financial year ended March 31, 2025, together with the report of the board of directors and auditors thereon. And second part, to consider and adopt the audited consolidated financial statements of the company for the financial year ended March 31, 2025, together with the report of the auditors thereon. Resolution number 2, declaration of dividend for the financial year ended March 31, 2025, again

Page 7 of 23 as an ordinary resolution. To declare a dividend of rupees 2 per equity share of face value of rupees 5 each for the financial year ended March 31, 2025. I have been interested in the next agenda. I request Mr. Kapal Pansari to take the

Chair.

Kapal Suresh Pansari

Thank you Mr. Choudhary. The next agenda is for the re- appointment of director retiring by rotation, which is ordinary resolution to appoint director in place of

Mr. Keshav Krishna Kumar Choudhary, who retires by rotation and being eligible, offers himself for re-appointment. Following resolutions to be passed at the

36th AGM as special business. The fourth point is reappointment of Mr. Krishna Kumar Choudhary as a

Chairman and Whole-Time Director of the company and payment of remuneration. I request Mr. Krishna Kumar

Choudhary to resume as Chairman of the meeting.

Krishna Kumar Choudhary

Thank you, Kapal so item number five is the reappointment of Mr. Suresh Kumar Pansari as the Vice Chairman,

Whole-Time Director of the company and payment of remuneration. This resolution is to be carried out as a special resolution. And item number six, approval for continuation of directorship of Mr. Yazdi Dandiwala as a non-executive independent director of the company beyond the attainment of age of 75 years in his current tenure as a special resolution. Item number 7, appointment of secretarial auditor for a term of five years and to fix their remuneration this is as an ordinary resolution. With this, we have completed all the resolution as of now. I would like to hand over to our CFO, Himanshu Shah, for further proceedings.

Himanshu Kumar Shah (CFO): Dear shareholders, good morning. I welcome you all as I take you through our financial performance for financial year 2025. Annual report and the financial statements are

Page 8 of 23 available with you. We will discuss key financial points from the same today. We reported another strong year of performance with revenue growing 24% to Rs.1,37,727 million, EBITDA rising 17.5% to 3609 million, and net profit surging 46% to 2097 million. Return to equity for the year was 12.6%, while return on capital employed was at 13.1%.

In a testament to our sustained strong performance, CRISIL ratings upgraded our strong-term rating to CRISIL AA- stable from CRISIL A+ positive and our short-term rating to

CRISIL A1+ from CRISIL A1. This marks the second consecutive year that a leading netting agency has recognized our financial resilience and operational excellence, affirming our consistent and robust performance trajectory. This positive validation provides a strong independent assessment of our strategic initiatives and reinforces our commitment to long-term value creation. As we leverage growing market opportunity, we are also working on cost optimization strategy that helps achieve enhanced margin, both at EBITDA and PAT level.

We have consistently demonstrated strong financial discipline and a robust strategy for cost optimization, which has contributed to a better margin trajectory. The company's performance is driven by improved operational efficiency and a strategic focus on high-margin product segments, such as AI and surveillance solutions. This approach showcases a disciplined management of the sales mix and a commitment to process optimization and cost management across all business operations. The concerted efforts on margin front positions the company on a growth path of sustained profitability and long-term value creation.

We are grateful to you for continued support and trust in our capabilities. Thank you very much for the patient hearing. We can now open the forum for question and answer.

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Himanshu Kumar Shah (CFO): We would like to now invite speaking shareholder number one. Mr. Keshav Garg, to kindly start with his questions.

Keshav Garg

Sir, thank you for the opportunity. Sir, I have sent my list of questions, but I will also ask them for the benefit of other shareholders. Sir, what is the outlook for FY2026 and

FY2027 in terms of top line and bottom line? Sir, our

EBITDA has remained flat at the 300 Crores level, even though our revenue has increased by 24%. So, why is that?

And Sir in the past two quarters, our EBITDA margins have,

I am talking other than the other income, have improved to

3% plus, which were like less than 2% or in the sub 2% range. Sir, what has changed and can this be the new normal for Rashi Peripheral going forward? Sir, also if you could address that our margins are much more volatile than our competitor Redington. Even, Sir, I understand that it is not comparable, but our margins are much more volatile than them. Sir, if you could just address that. Sir, our receivables that have been passed due date have increased, have almost doubled from 373 Crores to 711 Crores year on year. Sir, so how come is this happening when our revenue has increased only 24%? And Sir what is the risk of bad debts in this? Sir, similarly, what kind of steady state working capital days we should expect going forward with our initiatives as well as we add more enterprise business going forward? Sir, our advertisement expenses as well as sales promotion have increased from 21 Crores to 54

Crores. Sir, how come this has increased so much as we are only a pure play distribution company?

And it seems, Sir, that whatever ad spends that we do, we get reimbursed from the branch. Sir, in which line item is this reflected? And Sir, over the Q1 margins a reflection of this 54, some part of this 54 Crores coming and the actual margins were maybe in the 2-2.5 quotient range that we generally do. Sir, what is service charge of 39 Crores, which

Page 10 of 23 was nil last year? Similarly, Sir, our Forex losses have increased from 5 Crores to 46 Crores. Sir, so is there any foreign exchange hedging policy or exchange mechanism as to avoid these losses going forward? Sir, why are not into the mobile distribution business, which is the fastest growing segment, it seems, in the industry? Sir, what is the steady state operating as well as a PAT margin we should expect going forward? Sir, what would be our top five brands contributing to our revenue and our share as a percentage of these brands revenue? Sir, how much of our revenue share from data? Sir, I wanted to understand regarding the data center industry and the AI that we have mentioned constantly. Sir, how much of the revenue can we expect for us to be able to get for whatever investment is happening in India? Sir, it seems that there will be more than I think 100, 200 mega, I am not sure about the figure I read it somewhere, but huge investment in megawatts that is happening in the AI data centers. Sir, if 100 rupee investment is happening, Sir, how much of revenue can we expect conservatively that Rashi will be able to capture out of these? Sir, I wanted to understand regarding what would be the optimum revenue potential from our current net worth and working our little financing. Sir, considering that a steady state debt to equity ratio that we would follow, and what would be that debt to equity ratio would be? Also, I wanted to understand with this GST rates, there seems to be a hit that will happen at the retailer level. Sir, how are we placed in this, and if you want to help us understand the mechanism of will this affect our margins or will it be passed through or will we get some kind of benefits from our OEMs? And sir, how do we mitigate ourselves from obsolete inventory or price reduction risk by brands or

OEMs or just like a GST scenario that has happened? Sir, our working capital days has been increased from 44 days in the FY2020 to 54 days in FY2025. So why has this been

Page 11 of 23 increased and where do we see this stabilizing going forward? Because I think in 2020 there was no COVID scenario FY2020 so on a steady state, what kind of working capital days we can expect? Sir, we have mentioned we have done implementation of SAP and CRM and all these softwares. So what kind of working capital days or demand forecasting can this help us and improvement that you can see either on the working capital days or on our cost side in

FY2026 and FY2027. Sir, if you could just help us understand our business in the embedded lab, what is exactly that we do to your layman shareholders and what is this business? What was the revenue and margins that from this segment during FY2025 and where do we see this growing? Sir, who would be our customers in this segment, who would be our competitors? So just a broad overview of what we do and who would be our competitors in this segment and how are we differentiating ourselves. Sir, if you could just help us understand the working capital days that is in general trade, modern trade and e-commerce. Sir what percentage of our NVIDIA India business would be distributed by Rashi versus other competitors, and how much is done by directly by OEMs through partners like

NetWeb Technologies so similarly, how does this go for other brands as well? Sir, why have our other expenses increased by 60? So, I have mentioned the foreign exchange as well as the advertisement. Sir, if you could just help us understand what was our cash flow from operations, either after Q1 of any year or Q3 of any year for on a trailing performance basis over the past three years, because Sir, the negative cash flow it seems that because of our there is a seasonality in our business in the Q4 and Q2, we do not get a real sense of what cash flow Rashi is making. So, if you could just give out those numbers. Similarly Sir, what are our strengths and USPs of our company, and where do we compare our score versus our larger competitors like

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Redington and Ingram, and what is the age that Rashi has versus these competitors? And, Sir, the final question would be, Sir where do we see our business growing over the next

3 to 5 years. Sir so these are my list of questions it would be very helpful if you could address these. So, thank you so much and all the best.

Kapal Suresh Pansari

Thank you, Mr. Keshav, for asking such an exhaustive list of questions. We will start by answering one by one, and respectively, we will keep handing over to Himanshu and

Rajesh for answering the list of questions you raised. For the first question, on the outlook for 2026 and 2027, we only want to express that our top line for the last 25 years, our CAGR growth has been at 20%. And we are expecting to maintain similar range of 15 to 20% without any large deals that we have done in the past. The bottom line percentage also ranges will look better, since the indication for the first quarter, the last deal that we implemented for NMDC

YOTTA. Obviously, without that, the generalized margin will have an outlook of an improved baseline while revenue will be lower. And beyond that, there will be no other major deviations. For the second question, I would like Himanshu to answer to you.

Himanshu Kumar Shah (CFO): So your second question with respect to EBITDA remaining flat at rupees 300 Crores, I would like to mention here that the EBITDA is at 360 Crores considering the other income.

Why we are considering other income here is that certain expenses in the other expenses line item has been realized in the form of other income and for accounting purposes and INDAS purposes, we have shown them separately.

Therefore, if you consider that the EBITDA stands at 360

Crores as against 300 Crores. The next question of our receivables, past due date increased to 711 Crores from 373

Crores. It is a part of big project deal where there was delay in implementation. However, your concern regarding the

Page 13 of 23 bad debts out of debt, please be informed that 93% of the project payment we have already received and there is no bad debts risk we see in the same. Next question is towards what are the steady state working capital days for our business? Please note that the steady state of working capital days are 50 to 55 days applicable for distribution infrastructure we operate with. Our advertisement and sales promotion expenses have increased from 21 to 54

Crores is the next question posed by you. I would like to inform that the advertisement expenses pertains to marketing initiatives undertaken on behalf of brands by us.

You were right in saying that we are into distribution business. And corresponding reimbursement of the same is reflected in COGS in line with accounting standards.

Normally, it does not affect the profitability of the distributor. The question towards the service charge of 39

Crores versus nil year on year, the service charge pertains to installation, implementation and maintenance of large project deal, which was done during last year, the 39 Crores is that, which was not there in the previous year. That is why the difference is. Forex risk management and our foreign exchange loss of rupees 5 Crores to 46 Crores. As a practice, the company manages forex risk by keeping its probable risk either in form of repricing of stocks or the hedging of exposure. So it is a combination of repricing of stock and hedging is what makes us ring fence our forex risk. The current observation has on the amounts of year on year comparison. It has a compensating benefit reflected in other income in line with accounting standards and there is absolutely no impact on P&L of the same.

Rajesh Goenka (CEO): This is Rajesh Goenka here. So on your question about why we are not into mobile distribution business, as you know, the mobile business is a multi-billion dollar in terms of size.

And Rashi Peripherals always aspires to play big, not the

Page 14 of 23 small. And with our current CAGR growth of 20% plus, we do not have that luxury of doing decent numbers of mobile business. Therefore, currently, we are not into this business. However, we will continue to review the business prospects periodically.

Himanshu Kumar Shah (CFO): Steady state, your question about steady state EBITDA and

PAT margins, what we can expect going forward? The steady state EBITDA margin ranges from 2.5% to 3% and

PAT margins ranges from 1.5% to 2% and long run on an annualized basis.

Rajesh Goenka (CEO): On your question about the top five brands contribution, so our top five brands contribute to 60% of our top line, which is actually very healthy that also means that our dependence on one or two or three brands is not very high.

This is coupled with our 52 branch infrastructure, so our sales also is very much spread. I take pride in always saying that Rashi Peripherals is one of the most evenly and consistently distributed company in India. Then on your question about how much revenue share from data center investments can we conservatively hope? This is a very difficult question to answer. Last year, we had the first movers advantage, and we did almost more than 1,500

Crores of business. This year, multiple data centers are coming up, but at the same time, the competition also is fierce, margins are also tight. So we are currently working on various projects, but it is very difficult to pinpoint what revenue and what numbers we will be able to do it because these are all large projects.

Himanshu Kumar Shah (CFO): So next question of the optimum revenue potential with current net worth and working capital financing, where do we see our debt equity ratio stabilizing on steady state basis? Answer to this is that the steady state level enables 7 cycles and the company is operating at 6 cycles of working

Page 15 of 23 capital as on the balance sheet reported date. And with current level of debt-equity combination and operating cycles, the capital employed has a potential of revenue of approximately 16,000 Crores, which is a mathematical number worked out with the current level of working capital and debt. Further, debt will be function of working capital cycles between six to seven cycles on the reporting dates.

Rajesh Goenka (CEO): Yeah, on your question about the GST rate impact and the obsolescence of inventory, so let me just clarify that for ICT products and solutions, the GST variation is almost negligible, barring one or two categories like Wi-Fi products and second is interactive panels the GST has remained at 18 even in the past and now. So we do not see any impact, any significant impact of the GST. However, though overall impact because of the GST reduction, especially on food items, then consumer durables, this will enable consumers to have more money to spend and therefore, we expect a little bit higher business and second, higher average selling price going up in the ICT. As far as product obsolescence is concerned in this industry, normally these are all vendor supported. So distributor normally does not have any direct loss on product obsolescence.

Himanshu Kumar Shah (CFO): Next question regarding the working capital days increased from 44 in FY2020 to 54 in FY2025. I would like to say that the FY2020 last seven days, like lockdown was on 23rd

March 2020, so last seven days the inventory deliveries and sales were affected, first of all. Second thing is that financial year 2020, we are in the range of top line of roughly around little under 4,000 Crores. And this 2025 is three times. So the shift from the agility and the size to which we have shifted in the last 4 to 5 years definitely involves working capital investments. And our steady state working capital

Page 16 of 23 cycle, as I mentioned is 50 to 55 days. So benchmarking

2020 really would not be an apple to apple comparison.

Rajesh Goenka (CEO): So continuing to your question about the working capital days reduction achieved due to the implementation of SAP and CRM. So I just want to clarify that SAP is not new to

Rashi Peripherals. We implemented SAP almost 20 years back. In fact, we have upgraded our systems to SAP HANA.

It is only the CRM we have implemented recently, which is empowering our field sales force. So as a result of CRM, we definitely expect some improvement in the efficiency and hence better business and inventory days. Continuing to your next question about explain the business in embedded lab, what is the revenue and margin profile for this segment and who will be our customers? The embedded lab serves as a center of excellence, offering comprehensive support in hardware and software design, AI/ML application development, and PCB design using Altium. The core functions of the lab include building reference designs and demos, providing robust and scalable design models to accelerate product development, embedded hardware and software design offering expertise in microcontrollers, sensors, and real-time embedded systems. Customer project design reviews enable businesses to optimize their embedded solutions with expert guidance.

Board bring support ensures seamless integration and functionality of embedded boards in customer projects, PCB design using Altium delivering high precision PCB layouts for complex embedded applications. AI ML application development leverage artificial intelligence and machine learning to enhance embedded systems. We cater to customers in automotive, industrial, home appliances, telecom, medical verticals. Some of our customers are basically from OEMs, manufacturing and design houses. As

Page 17 of 23 far as margin profile and revenue, we are already at a triple digit revenue with a better margin and ROI in this business.

Himanshu Kumar Shah (CFO): On the working capital difference between the customer segment and GT, MT and e-commerce segments, which you asked please note that more or less the credit terms extended to all three customer segments are same and inventory days vary with highest being in the GT category followed by modern trade and e-commerce.

Rajesh Goenka (CEO): Yes, Keshav to your question about NVIDIA’s India business, I would only say that NVIDIA business in India is in three parts. One is direct NVIDIA products to the distributor. Second to the OEMs like HP, Dell, Lenovo, and

NetWeb. I take the pride in saying that Rashi Peripherals is the leading distributor in direct NVIDIA products.

Himanshu Kumar Shah (CFO): On your next question about other expenses increasing by

60% year on year, these points have already been covered in earlier question and our answers. However, we would like to say that the major impact is because of three components, Forex loss which has corresponding compensatory income in the other income category. Service charges are towards implementation charges of the large project. And advertisement expenses, as I mentioned, are activities undertaken on behalf of brand and compensating in COGS. On the cash flows for quarter one on TPM basis and quarter three for TTM basis, I would like to inform that after listing the hard book closing for quarters, I can provide you with two years numbers, which is quarter one for FY2024-2025 trailing 12 months. The quarter one trailing 12 months for 2025 was 109 Crores positive cash flow, vis a vis 2024 of quarter one being 388 Crores of negative cash flows. And quarter three of 2025, trailing 12 months, these numbers are on trailing 12 months basis 472

Crores, negative cash flow. And quarter three 2024, trailing

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12 months for 206 Crores, negative cash flow. On your next question, the expected IRR we aim for before embarking on any CapEx and additional investment, Please, be informed that the requirement of CAPEX in our business is only in the form of office equipment, leasehold improvements, etc. Our kind of business does not really warrant CAPEX investments and requires more working capital investments, thus minimizing the IRR relevance for the

CAPEX. Additional investments undertake-up, if any, has more of strategic motives than a pure IRR-based financial investment.

Rajesh Goenka (CEO): On your next question, two questions, who are our major competitors and what is the key strength and USP of our company as compared to competition? So, if you strictly ask me in the ICT space, who are our main competitors or peers, it is Redington and Ingram Micro. But I always beg to defer that we are a different company, our value additions are different. Rashi Peripherals has one of the leading network of 52 branches with 50 service centers and 68 warehouses, which is unprecedented. All 3 put together, office, service center and warehouse, are put together is unprecedented. We have a track record of 20% CAGR for last 25 years. We cater to more than 10,000 channel partners in 700 towns of India on credit. We have a very unique branch head structure where we manage not as a region, but as individual states, which gives us agility and widespread coverage. We are a value-added distributor and offer complete 360 degree solution comprising of pre-sales activities, solution design, tech support, credit support, warranty management services.

Himanshu Kumar Shah (CFO): I think we have answered almost all your questions. Mr.

Keshav Appreciate that you have sent us the list earlier. If anything is left out of it, may I request you to kindly let us

Page 19 of 23 know or else we will move to next speaker. Our next speaker is Nipun Choudhari.

Nipun Choudhari

Good morning, everyone. Yes, Sir, I just have one question.

Could you please let me know how many investor complaints were receiving during the FY 2024-2025 and whether all the complaints are resolved?

Himanshu Kumar Shah (CFO): So, Mr. Nipun, I would like to inform that during the

FY2024-2025, the company had received total 36 investor grievances out of which 35 were received during the June quarter and one in the September quarter. Further, in the last two quarters of the set financial year, there were no complaints and grievances, and all the complaints have been resolved. The details of these can also be seen in our corporate governance report in the annual report on page number 58 and in also in the BRSR report, page number 74 of the annual report.

Nipun Choudhari

Thank you, sir, for addressing my question.

Himanshu Kumar Shah (CFO): Next speaker, I will, Saylee Khobrekar you will proceed with your question, please.

Saylee Khobrekar

Hi, everyone. My name is Saylee. So firstly, I would like to thank the management for declaring the dividend and also appreciate the efforts in driving the company's growth. My question is could the management elaborate on the company's strategic direction for expanding its brand portfolio?

Rajesh Goenka (CEO): Yeah, very good question, Saylee. So, we continue to drive our 20% CAGR for last 25 years. And in line with this, we continue to grow organically and inorganically. Organically, which means that we continue to increase our market shares and inorganically means adding new verticals, new brands, and new product lines. As a part of this, you must

Page 20 of 23 have already seen in the media that there has already been a media announcement on a strategic distribution partnership with Dell Technologies for the complete range of their commercial products, solutions, server, storage, everything across the nook and corner of India. This will give us increased penetration, especially in the enterprise segment and the AI segment. Simultaneously, we have also already announced the tie-up, exclusive tie-out, rather, I would say, with Quantum Corporation USA for their storage solutions. So, these collaborations reflect our commitment to broaden our offerings, maintain growth momentum, and strengthen our market position. Yes, Saylee I hope we have answered your question.

Himanshu Kumar Shah (CFO): Now, I request next registered speaking shareholder Kanika

Jain for her question please.

Moderator

Kanika Jain named shareholder has not connected to the meeting. We can shift to next speaker shareholder.

Himanshu Kumar Shah (CFO): Now I request Kush Agarwal to put his question.

Moderator

I think there is a technical glitch at Kush side, we shift to next speaker shareholder.

Himanshu Kumar Shah (CFO): Next, we would like to invite Mr. Nitin Pansari to have his question on board, please.

Nitin Pansari

Namaste and a very good morning to everybody. My name is Nitin Pansari. I am a proud shareholder of the company and I see the company is doing great progress and the results are also positive, for which I would like to congratulate the management. And I also have a couple of questions to be answered. Sir, what are the company's plans to strengthen its geographic footprints and how does the management intend to drive deeper market penetration

Page 21 of 23 across the regions? Sir, if you can answer these and wish company all the best for the future endeavors.

Rajesh Goenka (CEO): Thank you so much for acknowledgement, Mr. Nitin. So, as you know, reach is our pride and reach is also our DNA. We continue to strive to expand our operations. As

Mr. Choudhary, our chairman, already shared that now we have 52 branches. The 52nd branch was Srinagar. We will continue to expand our operations beyond 52 cities of

India. There are few branches which are already in the offing. Similarly, we will continue to improve our penetration beyond the 700 towns of India where we are doing billing. As a part of this, we are as we speak, we are conducting channel business forum, which is a channel roadshow spread over 50 cities of India. So, it is our endeavor to continuously strive to expand our customer base, our city base, and equally important is our branch infrastructure.

Krishna Kumar Choudhary

So dear shareholders, as we conclude today's annual general meeting, I want to extend my heartfelt gratitude to each of you for your presence. Your engagement is vital. If there are any further queries which are unanswered due to the time, of course it is not, but still if you have any new query, please e-mail it to us so that we can get back to you on that. I want to take a moment to thank our dedicated employees, valued partners and loyal shareholders your unwavering support and commitment are the foundation of our success together we will continue to save a brighter and more prosperous future. I would like to wish you all a very happy festival month ahead we have a lot of festivity coming in the next month so I wish you in advance. Now I would like to hand over the proceeding to our esteemed chief financial officer Mr. Himanshu Kumar Shah for concluding and thank you once again for being part of our journey have a wonderful day.

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Himanshu Kumar Shah (CFO): Thank you Chairman Sir and thank you all the shareholders, for patiently hearing us during this entire tenure of the

AGM. The e-Voting platform is open for voting for those members present and who have not casted their vote earlier, to cast their votes. Now the members may exercise e-Voting. The resolutions as set forth in the notice shall be deemed to be passed today, subject to receipt of requisite number of votes. Further members may note that the voting on the NSDL platform will continue to be available for the next 15 minutes. Therefore, members who have not casted the vote are yet are requested to do so. Thank you once again, and thank you for the wish you best of and prosperous festivals ahead.

Moderator

We are off here now and e-Voting for 15 minutes is set on the webcast page.

Himanshu Kumar Shah (CFO): Thank you for attending the AGM. We are concluding the meeting now.

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