Advit Jewels Ltd Management Discussions

OPERATIONS

The following discussion of our financial condition and results of operations should be read in conjunction with our "Restated Financial Information" beginning on page 247.

This section may include forward-looking statements that involve risks and uncertainties, and our actual financial performance may materially vary from the conditions contemplated in such forward-looking statements as a result of various factors, including those described below and elsewhere in this Draft Red

Herring Prospectus. For further information, see "Forward Looking Statements" beginning on page 34.

Also read "Risk Factors" beginning on page 36, for a discussion of certain factors that may affect our business, financial condition or results of operations.

Unless otherwise indicated or the context otherwise requires, the financial information for Fiscal Years 2025, 2024 and 2023 included herein is derived from the Restated Financial Information, included in this Draft Red Herring Prospectus, have been prepared in accordance with requirements of the Companies Act and Ind AS and restated in accordance with the SEBI Regulations, which differ in certain material respects from IFRS, U.S. GAAP and GAAP in other countries. For further information, see "Restated Financial Information" beginning on page 247.

Unless the context otherwise requires, in this section, references to "our Company" or "the Company" or

"we" or "us" or "our" refers to Advit Jewels Limited.

OVERVIEW

Our company is a manufacturer and seller of handcrafted fine jewellery, specializing in Kundan, Polki, Diamond and Studded pieces. Our brand name "Rambhajo" finds its roots in a jewellery business established in 1921 by Late Shri Kishan Gilara in Jaipur.

Our offerings include necklaces, earrings, rings, bangles and customized jewellery pieces. Our manufacturing unit is located at Jaipur. We largely operate on B2B model, serving dealers, showrooms and jewellery retailers and also cater to B2C customers for exclusive, made-to-order pieces. To augment B2C sales, we are setting up one flagship store in Jaipur.

For further details please refer "Our Business" beginning on page 185.

SIGNIFICANT MATERIAL DEVELOPMENTS SUBSEQUENT TO THE FINANCIAL YEAR:

In the opinion of the Board of Directors of our Company, since the date of the last financial statements disclosed in this Draft Red Herring Prospectus, except those mentioned below, there have not arisen any circumstance that materially and adversely affect or are likely to affect the business activities or profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months except as mentioned below:

1) The Issue has been approved and authorised by the Board of Directors vide a resolution passed in their meeting held on September 10, 2025, and the Issue has been approved and authorised by the Shareholders of our Company vide a special resolution passed pursuant to the Companies Act, 2013 at the extraordinary general meeting held on September 11, 2025.

2) Issued bonus shares of 3,20,00,000 equity shares having a face value of 10/- each in the ratio of 3200:1 i.e. Thirty-Two Hundred equity shares issued for every one equity shares held by the shareholder dated August 26, 2025.

3) Ms. Pratibha Soni has been appointed as the Company Secretary and Compliance Officer of our Company w.e.f. August 01, 2025.

4) Mr. Deepesh Sharma has been appointed as the Chief Financial Officer of our Company w.e.f. August 01, 2025.

5) Mr. Sidharth Bafna, Mr. Amit Bardia, Mr. Divyank Bader and Ms. Arzoo Mantri have been appointed as the Independent Directors of our Company w.e.f. August 04, 2025.

6) Unsecured loans availed from Directors/ Relatives/ Other Party amounting 1682.886 lakhs were outstanding as on 31.03.2025. Outstanding balance of these loans is 155.15 lakhs as on September 10, 2025.

7) Inter-corporate deposit amounting to 157.81 lakhs was outstanding as on 31.03.2025. The outstanding balance of the same is 25.93 lakhs as on September 10, 2025.

8) Drop Line Overdraft Limit of 3,000.00 lakhs sanctioned to our company by ICICI Bank Limited has been reduced to 2,000.00 lakhs w.e.f. July 2025.

9) Our company has acquired trademark of our sister concern M/s Rambhajos for total consideration of 182.00 lakhs dated August 26, 2025. 10) Our company has started construction of retail showroom cum office at Plot No. A-4/2, A-4/4, Chomu House, Sardar Patel Marg, C- Scheme, Jaipur.

KEY FACTORS THAT MAY AFFECT OUR RESULTS OF SERVICES

Our results of services have been, and will be, affected by many factors, some of which are beyond our control. Our results of operations and financial conditions are affected by numerous factors including the following:

Customer Relationships and Brand Awareness

Our business model is pre-dominantly based on wholesale sales with a smaller portion derived from retail sales. Our main customers include corporate clients as well as traditional Jewellery stores. We have to maintain wide variety of designs, styles, and customisation options expected by customers alongwith providing flexible credit terms, in order to get the repeat orders from our customers. The growth of our operations and revenues depends on how effectively we serve our customers in order to build brand awareness and loyalty among end consumers. Our existing customers have shown repeat purchase behaviour and significantly contribute to our revenues, which validates the strength of having long term relationship with customers.

Going forward, our focus will remain on nurturing and expanding customer relationships by offering new product lines, seasonal collections, and personalized services. Leveraging our current portfolio and expertise, we aim to tap into new customer groups by identifying and targeting segments aligned with our existing verticals.

Seasonality

Our sales demonstrate clear seasonal patterns, with higher volumes and stronger margins during festive periods, weddings, and other special occasions.

To manage this, we maintain strategic inventory levels in anticipation of festive demand, while fixed costs such as employee salaries, showroom operations, and logistics remain largely constant throughout the year.

Lower-than-expected sales during peak quarters, or sharper seasonal variations than anticipated, could disproportionately affect our annual operating results, cash flows, and resource allocation. Additionally, any slowdown in consumer demand during festivals or a failure to accurately forecast seasonal trends could adversely impact our business performance.

Looking ahead, we expect the impact of seasonality to gradually diminish as we expand into new geographies and diversify our customer base, thereby balancing sales across the year.

Cost of Procuring Raw Materials and Manufacturing

The cost and availability of raw materials form a critical component of our overall cost structure and have a direct bearing on our profitability. Jewellery manufacturing is primarily dependent on gold, diamonds, precious stones, alloys, and other inputs, which collectively represent a substantial portion of our operating expenses.

Our business is significantly exposed to fluctuations in gold prices and availability, which are influenced by factors such as international demand-supply dynamics, changes in import duties, global economic trends, and geopolitical developments. Any sustained increase in raw material costs, or shortage in availability of quality gold and stones, could materially affect our margins, results of operations, and financial condition.

In addition to raw material dependency, our manufacturing process involves specialized equipment such as casting machines, induction melters, and compressors as well as skilled outsourced labour, particularly for manual stone-setting. Disruptions in manufacturing operations, rising labour costs, or inefficiencies in production could further impact our ability to deliver products at competitive prices and maintain profitability.

Quality Control

Our ability to sustain growth is closely tied to the quality and design precision of our jewellery. Any deviation from the approved designs or a lapse in quality standards could lead to weaker customer response, negatively impacting our sales, profitability, and long-term growth.

Although all our jewellery is hallmarked in accordance with BIS standards, any failure to consistently maintain these benchmarks may adversely affect customer trust and brand reputation.

Since our manufacturing processes are fully in-house, any operational disruption such as equipment failure, shortage of skilled labour, delays in procurement of raw materials, or unforeseen events like accidents or natural calamities could impair our production capabilities. This may result in delays, inability to meet demand, or loss of market share, all of which could materially affect our financial performance.

Macroeconomic, Political, and Global Risks

Our business performance is significantly influenced by fiscal, economic, and political conditions in India. Any slowdown in the domestic economy whether due to changes in interest rates, government policies, taxation, social or civil ust, pandemics, or other disruptive developments could adversely impact consumer spending and our results of operations.

Although jewellery demand in India tends to remain resilient given its cultural, religious, and wedding-related importance, prolonged economic uncertainty or adverse policy changes may affect disposable incomes, consumer confidence, and purchasing patterns.

In addition, our industry is exposed to global factors beyond our control. Fluctuations in gold and precious stone prices, changes in international trade policies, customs duties, or currency exchange rate volatility can directly influence product pricing, margins, and consumer affordability. Sharp movements in these variables could materially impact our revenue growth and profitability.

Working Capital Requirements

Our business model is working capital intensive. Significant funds are required to finance the procurement of raw materials (such as gold, diamonds, and other precious stones), maintain an optimum level of finished inventory, and support trade receivables from our retail operations.

As demand for our products continues to grow and we expand our operations, the need for incremental working capital will increase. As of March 31, 2025, our fund-based working capital facilities stood at 5,552.73 lakhs. To meet future requirements, we plan to utilize a portion of the proceeds from this Issue, amounting to 6,500.00 lakhs, to fund our incremental working capital needs.

Additionally, as part of our growth strategy, we intend to expand our retail presence through the construction and establishment of new showroom. This will not only enhance our brand visibility but also drive higher sales volumes, further increasing the need for adequate working capital support.

KEY PERFORMANCE INDICATORS AND CERTAIN NON-GAAP MEASURES

In evaluating our business, we consider and use certain non-GAAP financial measures and key performance indicators that are presented below as supplemental measures to review and assess our operating performance. The presentation of these non-GAAP financial measures and key performance indicators is not intended to be considered in isolation or as a substitute for the Restated Financial Information. We present these non-GAAP financial measures and key performance indicators because they are used by our management to evaluate our operating performance. These non-GAAP financial measures are not defined under Ind AS and are not presented in accordance with Ind AS. The non-GAAP financial measures and key performance indicators have limitations as analytical tools. Further, these non-GAAP financial measures and key performance indicators may differ from the similar information used by other companies, including peer companies, and hence their comparability may be limited. Therefore, these matrices should not be considered in isolation or construed as an alternative to Ind AS measures of performance or as an indicator of our operating performance, liquidity, profitability or results of operation.

EBITDA and EBITDA Margin

EBITDA is defined as our profit/loss before tax less other income before finance cost and depreciation and amortization. Profit/loss before tax margin is defined as profit/loss before tax divided by revenue from operations. EBITDA margin is defined as our EBITDA as a percentage of revenue from operations.

The following table reconciles our profit/loss before tax (an Ind AS financial measure) to EBITDA for the periods indicated based on the Restated Financial Statements.

Particulars	For the Fiscal Year ended March 31,
	2025	2024	2023
Restated (loss) / profit after tax less other income	2,536.71	1,471.04	1,038.98
Add: Total Tax Expense	533.44	307.80	213.84
Add: Finance Costs	582.51	79.90	15.26
Add: Depreciation and amortization expenses	62.75	37.42	9.42
Less: Other Income	0.74	0.99	0.07
Earnings before interest, taxes, depreciation and amortization expenses (EBITDA)	3,714.67	1,895.17	1,277.43
Revenue from operations	12,493.73	6,944.26	4,660.41
EBITDA Margin %	29.73%	27.29%	27.41%

Restated Financial Statements:

Particulars	For the Fiscal Year ended on March 31
	2025	2024	2023
Revenue from Operations (1) ( in Lakhs)	12,493.73	6,944.26	4,660.41
Growth in Revenue from Operations (2) (%)	79.91%	49.01%	-
Gross Profit (3) ( in Lakhs)	4,109.16	1,974.45	1,305.45
Gross Profit Margin (4) (%)	32.89%	28.43%	28.01%
EBITDA (5) ( in Lakhs)	3,714.67	1,895.17	1,277.43
EBITDA Margin (6) (%)	29.73%	27.29%	27.41%
Profit After Tax (7) ( in Lakhs)	2,536.71	1,471.04	1,038.98
PAT Margin (8) (%)	20.30%	21.18%	22.29%
RoE(9) (%)	55.79%	57.82%	80.51%
RoCE (10) (%)	27.48%	35.41%	53.02%
Net Fixed Asset Turnover (11) (In Times)	16.63	121.59	912.02
Net Working Capital Days (12)	159	165	140
Operating Cash Flows (13) ( in Lakhs)	(3,697.69)	(1,049.33)	(277.25)
Earnings per Share (adjusted after bonus issue)
Basic (14)	7.92	4.60	3.25
Diluted (15)	7.92	4.60	3.25
Operating Profit before Working Capital Changes (16) ( in Lakhs)	3,711.09	1,897.57	1,280.39
Current Ratio (17) (In Times)	1.76	1.93	2.66
NAV per Equity Share (adjusted after bonus) (18)	18.16	10.25	5.65
Net Worth (19) ( in Lakhs)	5,813.42	3,280.29	1,807.82
Return on Net Worth (20) (%)	43.64%	44.84%	57.47%

*Pursuant to the certificate dated September 26, 2025, received from our Statutory and Peer Review Auditor, M/S Keyur Shah and Associates, Chartered Accountants

Notes:

(1) Revenue from Operations means the Revenue from Operations as appearing in the Restated Financial Statements.

(2) Growth in Revenue from Operations (%) is calculated as a percentage of Revenue from Operations of the relevant year minus Revenue from Operations of the preceding year, divided by Revenue from Operations of the preceding year. (3) Gross Profit is calculated as Revenue from Operations less Cost of Goods Sold. (4) Gross Profit Margin (%) is calculated as Gross Profit divided by Revenue from Operations. (5) EBITDA is calculated as profit for the year, plus tax expenses (consisting of current tax, deferred tax and current taxes relating to earlier years), Finance costs and depreciation and amortization expenses and minus other income. (6) EBITDA Margin (%) is calculated as EBITDA divided by Revenue from Operations. (7) Profit After Tax Means Profits for the year as appearing in the Restated Financial Statements. (8) PAT Margin (%) is calculated as Profits for the year as a percentage of Revenue from Operations. (9) ROE (Return on Equity) (%) is calculated as net profit after tax (PAT) for the year divided by Average Shareholder Equity. (10) ROCE (Return on Capital Employed) (%) is calculated as earnings before interest and taxes divided by capital employed. (11) Net Fixed Asset Turnover is calculated as Net Turnover divided by Fixed Assets which consists of property, equipment and Intangible Assets. (12) Net Working Capital Days is calculated as working capital (current assets minus current liabilities) as at the end of the year divided by revenue from operations multiplied by number of days in a year. (13) Operating cash flows means net cash generated from operating activities as mentioned in the Restated Financial Statements (14) Earnings per Share (Basic) is calculated as profit after tax divided by weighted average number of equity Shares during the year adjusting for the changes in the capital occurred after the balance sheet date (15) Earnings per Share (Diluted) is calculated as profit after tax divided by weighted average number of diluted equity shares during the year adjusting for the changes in the capital occurred after the balance sheet date. (16) Operating Profit before Working Capital Changes means cash generated before change of working capital adjustments. (17) Current Ratio is calculated as current assets divided by current liabilities. (18) NAV per Equity Share is calculated as Equity attributable to equity holders of the divided by weighted average number of shares during the end of year adjusting for the changes in the capital occurred after the balance sheet date. (19) Net Worth means Equity attributable to equity holders of the as mentioned in the Restated Financial Statements. (20) Return on Net Worth is calculated as restated profit for the year divided by net worth.

PRESENTATION OF FINANCIAL INFORMATION

The Restated Financial Information of our company comprise of the Restated Statement of Assets and Liabilities as at March 31, 2025, March 31, 2024 and March 31, 2023, the Restated Statement of Profit and Loss (including Other Comprehensive Income), the Restated Statement of Cash Flow and the Restated Statement of Changes in Equity for the years ended March 31, 2025, March 31, 2024, March 31, 2023, and the summary statement of material accounting Policies and Explanatory Information (Collectively, the "Restated Financial Information"). These Restated Financial Information of our company has been approved by the Board of Directors of the Company on September 12, 2025, for the purpose of inclusion in the Draft Red Herring Prospectus ("DRHP") in connection with the proposed Initial Public Offering ("IPO") of its equity shares (referred to as the "Issue") prepared by the Company in terms of the requirements of:

a) Section 26 of Part I of Chapter III of the Companies Act, 2013, ("the Act"), as amended from time to time; b) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended ("the SEBI ICDR Regulations"); and c) The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India (ICAI), as amended ("the Guidance Note"). These Restated Financial Information have been compiled by the Management from: d) Audited Financial Statements of our Company as at and for year ended March 31, 2025 prepared in accordance with the Indian Accounting Standards (referred to as ‘Ind AS) as prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015, as amended, and other accounting principles generally accepted in India, which have been approved by the Board of Directors at their meeting held on August 26, 2025. e) Audited Financial Statements of our Company as at and for year ended March 31, 2024 and March 31, 2023 prepared in accordance with the Accounting Standards (referred to as "Indian GAAP") as prescribed under Section 133 of the Act and other accounting principles generally accepted in India, which have been approved by the Board of Directors at their meeting held on September 30, 2024 and

September 30, 2023. f) As required under Ind AS 33 - Earnings per share, the effect of such bonus issue is adjusted to the weighted average number of equity shares outstanding during the reporting periods for the purpose of computing earnings per equity share for all the period presented retrospectively. As a result, the effect of such bonus issue has been considered in this Restated Financial Information for the purpose of calculating earnings per equity share.

These Restated Financial Information do not reflect the effects of the events that occurred subsequent to the respective dates of board meetings held for approval of Statutory Purpose Financial Statements as at and for years ended March 31, 2025, March 31, 2024 and March 31, 2023, except for the bonus issue as mentioned above.

The Restated Financial Information have been prepared so as to contain information / disclosures and incorporating adjustments set out below in accordance with the SEBI ICDR Regulations:

Adjustments to the profits or losses of the earlier years for the changes in accounting policies if any to reflect what the profits or losses of those years would have been if a uniform accounting policy was followed in each of these years and of material errors, if any;

Adjustments for reclassification/regroupings of the corresponding items of income, expenses, assets and liabilities retrospectively in the years ended March 31, 2025, March 31, 2024 and March 31, 2023, in order to bring them in line with the groupings as per the Restated Financial Information of the company for the year ended March 31, 2025 and the requirements of the SEBI Regulations, if any; and

The resultant impact of tax due to the aforesaid adjustments, if any.

The company follows historical cost convention and accrual method of accounting in the preparation of the financial statements, except otherwise stated.

The Restated Financial Information are presented in Indian Rupees (INR) except otherwise stated.

These Restated financial statements of the Company are prepared in accordance with Indian Accounting Standard ("Ind AS") notified under the Companies Act, 2013 ("the Act").

SIGNIFICANT ACCOUNTING POLICIES

The discussion and analysis of our financial condition and results of operations is based on the Restated Financial Information. For details of significant accounting policies followed by us while preparing our financial statements, see "Restated Financial Information" beginning on page 247.

OUR BALANCE SHEET ITEMS

Particulars	For the Fiscal Year ended on March 31
	2025	2024	2023
I. ASSETS
1. Non - current assets
a) Property, Plant and Equipment	1,396.34	106.30	7.92
b) Right of Use Assets	60.42	86.82	20.05
c) Financial assets
- Other financial assets	8.18	7.44	6.77
d) Deferred tax assets (net)	14.31	9.67	3.14
Total Non-Current Assets	1,479.25	210.23	37.88
2. Current assets
a) Inventories	10,723.91	4,491.67	1,041.67
b) Financial assets
- Trade receivables	1,477.54	757.50	1,551.63
- Cash and cash equivalents	263.17	358.12	257.39
- Loans	0.80	0.02	-
- Other Financial assets	0.10	-	2.12
c) Current Tax Assets	-	25.12	6.07
d) Other Current Assets (Net)	140.63	851.27	4.36
Total Current Assets	12,606.15	6,510.70	2,863.24
TOTAL ASSETS	14,085.40	6,720.93	2,901.12
II. EQUITY AND LIABILITIES
A. Equity
a) Equity Share capital	1.00	1.00	1.00
b) Other equity - attributable to owners of the company	5,812.42	3,279.29	1,806.82
Total Equity	5,813.42	3,280.29	1,807.82
B. Liabilities
1. Non - Current Liabilities
a) Financial liabilities
- Long term borrowings	1,060.27	-	-
- Long term lease liabilities	41.14	63.33	13.53
b) Provisions	9.82	2.78	3.14
Total Non-Current Liabilities	1,111.23	66.11	16.67
2. Current liabilities
a) Financial liabilities
- Short-Term Borrowings	6,419.57	1,969.51	583.79
- Short-Term Lease liabilities	30.14	32.87	9.15
- Trade payables
i. total outstanding dues of micro and small enterprises	10.97	10.24	-
ii. total outstanding dues of creditors other than micro and small	246.21	886.20	219.54
enterprises
- Other financial liabilities	115.86	27.97	13.71
b) Provisions	20.98	7.10	3.60
c) Other current liabilities	145.44	440.64	246.84
d) Current tax liabilities (net)	171.58	-	-
Total Current Liabilities	7,160.75	3,374.53	1,076.63
Total Liabilities	8,271.98	3,440.64	1,093.30
Total Equity and Liabilities	14,085.40	6,720.93	2,901.12

Discussion on Major Balance Sheet Items March 31, 2025 compared with March 31, 2024 Inventories

2024-25	2023-24	Variance in %
10,723.91	4,491.67	138.75%

The inventory of our company has increased from 4,491.67 Lakhs in FY 2023-24 to 10,723.91 Lakhs in FY 2024-25 representing 138.75%. Out of total inventory, finished goods consist of 7,865.80 lakhs which include various designs of products viz. necklaces, earrings, bangles, broches and rings. Our sales is majorly 81.63% to the B2B customers who are into retail Jewellery business and due to their nature of trade we face the challenge of offering them various variety of designs and styles as per expectation of end customers therefore our company strategizes to increase number of designs of each product along with number of pieces of each design to serve their demands. Our company was having 17 number of Jewellery items in our portfolio for the year ending 31.03.2024 which increased to 21 for the year ending 31.03.2025 having various designs in each jewellery item. The additions both in designs and quantity of items has resulted in increase of our inventory from 4,491.67 lakhs in FY2023-24 to 10,723.91 lakhs in

FY2024-25. Further, another reason for increase in our finished good inventory is steep increase in the gold prices from average 6,101.00 per gram in FY 2023-24 to 7,364.00 per gram in FY 2024-25. Our products generally have 35% gold content. Therefore, the amount of investment in inventory is increasing on year-to- year basis with the corresponding increase in cost of gold in the relevant year. The increase in the inventory of the company has benefited to us as our company revenue arose from 6,944.26 lakhs in

FY 2023-24 to 12,493.73 lakhs in FY 2024-25 leading to rise of 79.91%. Our revenue is directly in proportion to the designs and styles we have in our portfolio which is evident from the table below.

Particulars	FY 2022-23	FY 2023-24	FY 2024-25
Revenue	4,660.41	6,944.26	12,493.73
Revenue Growth %	-	49.01%	79.91%
Inventory
Raw Material	500.69	1135.63	2564.84
Work in progress	-	-	293.27
Finished Goods	540.98	3356.04	7865.80
Finished Inventory Growth %	-	520.36%	134.38%
Finished Inventory as a % of Revenue	11.61%	48.33%	62.96%

Trade Receivables

2024-25	2023-24	Variance in %
1,477.54	757.50	95.05%

The trade receivables of company have increased from 757.50 Lakhs in FY 2023-24 to 1,477.54 Lakhs in FY 2024-25 representing 95.05% increase in trade receivables. Our company generally provide credit terms of 1-2 months to our customers. With increase in revenue from operations from 6,944.26 lakhs in FY 2023-24 to 12,493.73 lakhs in FY 2024-25, our trade receivables have also increased from 757.50 lakhs in FY 2023-24 to 1,477.54 lakhs in FY 2024-25.

Trade Payables

2024-25	2023-24	Variance in %
257.18	896.44	-71.31%

The trade payables of our company have decreased from 896.44 Lakhs in FY 2023-24 to 257.18 Lakhs in FY 2024-25 representing 71.31% decrease in trade payables. Our suppliers were providing credit terms of 39 days in FY 2023-24 which was reduced to 7 days in FY 2024-25. In order to take benefit of better pricing, our company reduced payables holding period from 39 days to 7 days in FY 2024-25 by availing working capital limits of 4,492.46 lakhs in FY 2024-25.

Borrowings Long-Term

2024-25	2023-24	Variance in %
1,060.27	-	100.00%

Our company has sanctioned long term loan of 1,200.00 lakhs for business purposes. Our company has purchased land for upcoming new office and showroom situated at Plot No. A-4/2, A-4/4, Chomu House, Sardar Patel Marg, C-Scheme, Jaipur from own funds. Later on, Bank financed long term loan of 1,200.00 lakhs against security of this property for business purpose.

Borrowings Short-Term

2024-25	2023-24	Variance in %
6,419.57	1,969.51	225.95%

Our company has sanctioned working capital limits of 8,285.00 lakhs which were not available in FY23-24. After availment of working capital limit to the tune of 4,492.46 lakhs in FY 2024-25, our short- term borrowings increased from 1,969.51 lakhs in FY 2023-24 to 6,419.57 lakhs in FY 2024-25 indicating growth of 225.95%.

March 31, 2024 compared with March 31, 2023

Inventories

2023-24	2022-23	Variance in %
4,491.67	1,041.67	331.20%

The inventory of our company has increased from 1,041.67 Lakhs in FY 2022-23 to 4,491.67 Lakhs in FY 2023-24 representing 331.20% increase in inventory. Out of total inventory in FY 2023-24, finished goods consist of 3,356.04 lakhs which include various designs of products viz. necklaces, earrings, bangles, broches and rings. Our sales is majorly 66.01 to the B2B customers who are into retail Jewellery business and due to their nature of trade, we face the challenge of offering them various variety of designs and styles as per expectation of their end customers therefore our company strategize to increase number of designs of each product along with number of pieces of each design to serve their demands. Our company was having 8 number of Jewellery items in our portfolio for the year ending 31.03.2023 which increased to 17 for the year ending 31.03.2024 having various designs in each jewellery item. The additions both in designs and quantity of items have resulted in increase in our inventory from 1,041.67 lakhs in FY 2022-23 to 4,491.67 lakhs in FY 2023-24. Further, another reason for increase in our finished good inventory is steep increase in the gold prices in last 3 fiscal years from average 5,230.00 per gram in FY 2022-23 to 6,101.00 per gram in FY 2023-24 and 7,364.00 per gram in FY 2024-25. Our products generally have 35% of gold content. Therefore, the amount of investment in inventory is increasing on year-to- year basis with the corresponding increase in cost of gold in the relevant year. The increase in the inventory of the company has benefited to us as our company revenue arose from 4,660.41 lakhs in FY 2022-23 to 6,944.26 lakhs in FY 2023-24 leading to rise of 49.00%. Our revenue is directly in proportion to the designs and styles we have in our portfolio which is evident from the table below:

Particulars	FY 2022-23	FY 2023-24	FY 2024-25
Revenue	4,660.41	6,944.26	12,493.73
Revenue Growth %	-	49.01%	79.91%
Inventory
Raw Material	500.69	1,135.63	2,564.84
Work in progress	-	-	293.27
Finished Goods	540.98	3,356.04	7,865.80
Finished Inventory Growth %	-	520.36%	134.38%
Finished Inventory as a % of Revenue	11.61%	48.33%	62.96%

Trade Receivables

2023-24	2022-23	Variance in %
757.50	1,551.63	-51.18%

The trade receivables of our company have decreased from 1,551.63 Lakhs in FY 2022-23 to 757.50

Lakhs in FY 2023-24 representing 51.18% decrease. During the year our company with nil short-term borrowings from banks focused on timely realizations from its customers to fund its operations and in the process have been able to recover entire due balances from two of our major customers which has resulted in decline of outstanding balances of trade receivables.

Trade Payables

2023-24	2022-23	Variance in %
896.44	219.54	308.33%

The trade payables of our company have increased from 219.54 Lakhs in FY 2022-23 to 896.44 Lakhs in FY 2023-24 representing 308.32% increase. During the current year, our company purchased gold on credit terms from HDFC Bank Limited on attractive terms which our company was earlier sourcing from open market on cash basis. This purchase has led to increase in outstanding balance of trade payables.

Borrowings Long-Term

2023-24	2022-23	Variance in %
0.00	0.00	0.00%

Our Companys long- term borrowings were NIL in both FY2022-23 and FY 2023-24.

Borrowings Short-Term

2023-24	2022-23	Variance in %
1,969.51	583.79	237.37%

Our company was not availed of working capital limits from banks or financial institutions in FY 2022-23 and FY 2023-24. The balances in the short-term borrowings represents short term loans availed from directors and their relatives for working capital requirements amounting 126.90 lakhs in FY 2022-23 which increased to 844.84 lakhs in FY 2023-24. Similarly inter-corporate deposits were also availed from group companies for working capital requirements amounting to 456.89 lakhs in FY 2022-23 which increased to 1,124.67 lakhs in FY2023-24.

OVERVIEW OF REVENUE AND EXPENDITURE

Revenue and Expenses

Our revenue and expenses are reported in the following manner:

Total Revenue.

Our Total Revenue comprises of revenue from operations and other income.

Revenue from operations Our revenue from operations comprises of sale of products such as Kundan Meena Polki Jewellery and Diamond Jewellery and job work income.

The revenue breakup according to Sales of Products and Sales of Services for three Fiscal Years based on Restated Financial Statements are as under:

	For the Fiscal year ended March 31,
Particulars	2025		2024		2023
	Amount	%	Amount	%	Amount	%
A. Manufacturing Sales
Cut Setted Diamond Jewellery with Polki	164.17	1.31%	187.92	2.71%	-	-
Gold Kundan Meena Polki Jadau Jewellery	11,926.58	95.46%	6,553.98	94.38%	4,660.41	100.00%
Total (A)	12,090.75	96.77%	6,741.90	97.09%	4,660.41	100.00%
B. Sale of Service
Job Work Income	402.98	3.23%	202.36	2.91%	-	-
Total (B)	402.98	3.23%	202.36	2.91%	-	-
Total (A+B)	12,493.73	100.00%	6,944.26	100.00%	4,660.41	100.00%

*Pursuant to certificate dated September 25, 2025, received from our Statutory and Peer Review Auditor, M/s Keyur Shah and Associates, Chartered Accountants.

Revenue from Operations has increased from 4,660.41 Lakhs in FY 2022-23 to 6,944.26 Lakhs in FY

2023-24 and further increased to 12,493.73 Lakhs in FY 2024-25. We specialize in manufacturing Kundan Meena Polki Jewellery which is the most sought Jewellery items in Indian Jewellery market. Our Jewellery comprises of necklaces, earrings, bangles, broches and rings all made from Kundan Meena Polki. Our growth in revenue was driven by number of designs we offer along with quantity of items in each of these designs. Our sales are majorly focused to B2B suppliers who are into retail Jewellery business and need to maintain wide range and variety of Jewellery items in order to fulfill the demand of end customers. The huge inventory built-up by our company assisted in garnering business from these B2B customers. In addition to volume growth, our company experienced growth in revenue due to steep increase in prices of gold which rise from 5,230.00 per gram in FY23 to 7,364.00 per gram in FY 2024-25. Also, further company is regularly focusing on the marketing of its product offerings via customer engagement through Instagram, private messages, and participation in trade exhibitions (Bridal Asia, IIJS, Couture India Show and JJS) across India which has boosted brand visibility and resulted in increased orders.

Other Income Our other income primarily includes on security deposit as required under Ind AS-109 and interest income.

Expenses

Our total expenses comprise of (i) Cost of material consumed (ii) Changes in Inventories of Finished Goods and Work in Progress (iii) Employee Benefits Expenses (iv) Depreciation and Amortization, (v) Finance Cost and (vi) Other Expenses.

Cost of Material Consumed Cost of Material Consumed includes consists of Opening stock of Raw Material, Purchase of Raw Material and Closing stock of Raw Material. Purchase of gold comprises our cost of materials consumed followed by diamonds, precious and semi-precious stones.

Changes in Inventories of Finished Goods and Stock-In-Trade The net changes in inventories of finished goods and work in progress is the difference between the closing stock and opening stock.

Employee benefit expenses Our employee benefit expenses mainly include Salaries and allowances, Directors Remuneration, contribution to ESI and PF, gratuity and staff welfare expenses.

Finance costs Our finance costs include interest on secured and unsecured borrowings, interest on lease liabilities and other bank charges.

Depreciation and amortization expenses Depreciation and amortization expenses majorly comprise depreciation on property, plant and equipment. Our depreciation and amortization expenses also includes the depreciation on right of use assets.

Other expenses Other expenses primarily consist of Rent, Business promotion & advertisement, bank charges, professional & consultancy charges, Insurance expenses, Rates & taxes, Travelling expenses & conveyance, member ship & registration and foreign exchange fluctuation expenses.