Amanaya Ventures Ltd Management Discussions

This chapter on Managements Discussion and Analysis (“MD&A”) is to provide the stakeholders with a greater understanding of the Companys business, the Companys business strategy and performance, as well as how it manages risk and capital.

The following management discussion and analysis is intended to help the reader to understand the results of operation, financial conditions of Amanaya Ventures Limited.

I. ECONOMIC OVERVIEW, INDUSTRY STRUCTURE AND DEVELOPMENTS:

GLOBAL ECONOMIC REVIEW

According to the IMFs April 2025 World Economic Outlook, global growth is projected at 3.3% in 2024, followed by a slowdown to 2.8% in 2025. While advanced economies show tentative signs of recovery, major emerging markets remain sluggish. Core inflation continues to hover above prepandemic levels in many regions, even as headline inflation gradually moderates. Geopolitical tensions, rising protectionism, and tightening monetary policies continue to pose significant challenges to global capital flows and commodity demand.

(Sources: IMF WEO April 2025; various analyses and press releases)

INDIAN ECONOMY REVIEW:

India continues to remain one of the fastest-growing major economies in the world. As per the Ministry of Statistics and Programme Implementation (MoSPI), real GDP growth for FY 2024-25 is estimated at 6.5%, driven by strong infrastructure-led public investment, resilient domestic consumption, and improving investor confidence. The International Monetary Fund (IMF), in its July 2025 update, projects Indias GDP growth at 6.4% for 2025 and 2026, reaffirming the countrys position as the leading growth engine among large economies despite global uncertainties.

Indias socio-economic landscape continues to reflect a deep-rooted preference for gold as a household asset. With an estimated 25,000 tonnes of privately held gold, Indian households remain the largest holders of the precious metal globally. Bullion and jewellery continue to dominate household savings and investment, underscoring Indias status as a gold-centric economy.

INDUSTRY REVIEW:

A structural change in the investment market

In India, physical assets remain the cornerstone of household savings, particularly real estate and precious metals such as gold and silver in the form of bars, coins, and jewellery. This deep-rooted preference has made India the worlds second-largest bar and coin market, with annual consumption averaging around 185-190 tonnes over the past decade.

Gold investment in India continues to play a dual role: not only serving as a long-term savings instrument but also acting as a bridge to jewellery demand. According to Metals Focus field research, around 40-50% of bar and coin purchases are eventually converted into jewellery, underscoring their unique dual-purpose value.

Drivers of gold investment demand

The drivers of Indian bar and coin demand mirror those behind jewellery consumption. Weddings, festivals, and religious occasions remain strong cultural anchors of demand. On the economic side, bar and coin demand is highly income-sensitive: econometric analysis shows that a 1% rise in gross national income per capita typically lifts demand by about 1.1%.

However, a structural shift is underway. With rising incomes and greater financial inclusion, Indian households are increasingly allocating savings towards financial assets such as deposits, insurance, and mutual funds. This creates a headwind for physical gold investment, even as demand persists for cultural and safe-haven reasons.

Despite this, recent data from Q2 2025 highlights resilience in retail investment: Indian bar and coin demand rose 7% y/y to 46 tonnes, marking the eighth consecutive quarter of growth, even in the face of record-high gold prices breaching the Rs100,000/10g mark. The trend towards smaller denominations and coins below 10 grams has strengthened, reflecting affordability pressures and gifting needs.

Investment motives for bar and coin remain different

The objectives behind gold investment remain unchanged. Bars dominate the investment market, while coins are largely purchased for gifting and festive purposes. The Indian gold bar market is estimated to be roughly twice the size of the coin market.

Bars: All produced in 24-carat gold, with popular denominations ranging from small units like 8g, 10g, and 20g (Guinea series) to larger weights of 50g and 100g, often preferred by high-net-worth investors. Minted bars of 100g or less account for nearly 90-95% of the market.

Coins: Extremely popular during Diwali, Dhanteras, and Akshaya Tritiya, with 30-40% of annual coin sales concentrated around these periods. Favoured sizes include 1g, 2g, 5g, 8g, and 10g, often inscribed with images of Lakshmi or Ganesha, and widely used for gifting on auspicious occasions such as weddings and childbirth.

Jewellers are the favoured point of sale

Jewellers continue to dominate as the preferred channel for bar and coin transactions in India, accounting for an estimated 80-85% of offline retail sales. This reflects deep consumer trust in established jewellery brands and the cultural linkage between investment demand and jewellery purchases.

Evolving Distribution Landscape

• Refineries Expanding into Retail

Newly established domestic refineries are increasingly pursuing direct-to-consumer sales through exclusive outlets and digital storefronts. Supported by initiatives such as the India International

Bullion Exchange (IIBX), this trend enhances transparency and provides investors with direct access to minted bars and coins.

• E-commerce Penetration

Online marketplaces such as Amazon, Flipkart, and Snapdeal now account for 3-5% of bar and coin sales. While still modest, this channel is expanding rapidly, appealing to urban millennials and digital-first buyers who prioritise convenience, small denomination products, and doorstep delivery.

• Rise of Digital Gold

A major structural shift is the growth of digital gold platforms operated by fintech players such as Paytm, PhonePe, Google Pay, and brokerage-backed apps. These platforms enable accumulation in micro-denominations (as low as Rs100). By 2025, the Indian digital gold market is estimated to have crossed Rs25,000 crore (US$3 billion) in value, registering double-digit annual growth.

Digital gold has broadened the investor base by attracting younger and first-time buyers, and often serves as a feeder into long-term physical gold purchases.

Strategic Implications

• Traditional jewellers retain market leadership, but competitive pressure is intensifying from refineries and fintech-backed platforms.

• The convergence of physical and digital channels is reshaping consumer behaviour, with omnichannel distribution expected to dominate the next phase of market evolution.

• For investors and companies alike, digital adoption is both an opportunity and a strategic necessity to capture new segments and remain relevant in a transforming bullion landscape.

Sources: World Gold Council - Gold Demand Trends Q2 2025; Metals Focus; Refinitiv GFMS; ET Markets, Economic Times, Business Standard (2025).

COMPANY OVERVIEW:

"We want to make physical Gold and Silver purchases affordable, convenient, and transparent with a personal touch.”

Your Company is engaged in the business of trading precious metals, with a primary focus on 24 Carat Gold, Silver Bars, and Jewellery. We operate on a bullion-first model, emphasizing spot buying and selling of physical gold and silver bars, backed by strong compliance and transparency standards.

We have developed our own brand “Aurel Forever Yours!", under which we offer 24K gold and silver bars and coins across various denominations and sizes. These products can be purchased seamlessly through:

• Our dedicated Aurel Bullion App, available on both the Play Store and App Store, provides live bullion rates and facilitates the buying and selling of physical gold and silver bars. The platform is positioned as a B2B physical bullion trading solution, primarily serving jewellers, while also enabling serious individual buyers to access physical bullion directly. It ensures transparency, convenience, and compliance-driven trust in every transaction.

• Our e-commerce platform, www.aureljewels.com, is the exclusive online destination for purchasing our physical bullion and jewellery products. The website offers 24K gold and silver bars and coins across denominations, with transparent live pricing, easy navigation, and secure delivery services. In addition to bullion, it features carefully selected jewellery collections, all offered under strict compliance standards. With its direct-to-consumer model and active social media presence, the platform strengthens our retail footprint and provides customers with convenient, trustworthy access to authentic bullion and jewellery.

• Aurel Gold Purchase Plan - A compliant and transparent monthly savings plan starting from just Rs3,000, enabling customers to steadily accumulate certified 24K gold bars with GST-paid invoices and assured delivery. For more details, please visit https://www.aureliewels.com/pages/aurel-gold-purchase-plan.

• Aurel Silver Purchase Plan makes owning 999 pure silver simple and transparent. Starting at just Rs1,500 per month, customers fix monthly rates, receive GST-paid invoices, and take doorstep delivery of physical silver bars at the end of the plan. For more details, please visit: https://www.aureljewels.com/pages/silver-purchase-plan.

New Initiatives in FY 2024-25:

Customised Jewellery Sourcing:

Along with Aurel Heritage Jadau Jewellery?crafted exclusively in Amritsar, the only city preserving this intricate art form and positioned as a niche B2C segment?your Company introduced a Customised Jewellery Sourcing initiative during FY 2024-25.

This initiative was launched in response to requests from Gold Purchase Plan (GPP) customers seeking jewellery for weddings and other family occasions. Operating under a asset-light model, the Company has partnered with reputed wholesale jewellery houses to deliver bespoke designs and sourcing solutions.

This model enables customers to seamlessly convert accumulated gold into customised jewellery at highly competitive making charges of only 5-10%, compared to the 25% or more typically charged by large jewellery chains. By integrating heritage craftsmanship with cost-efficient sourcing, the Company has deepened customer engagement, created an additional value proposition within its bullion ecosystem, and reinforced its position as a transparent, compliant, and customer-centric bullion enterprise.

Expansion into Export Markets

During the year, your Company commenced jewellery exports to B2B customers, leveraging CEPA with the UAE and ECTA with Australia. These agreements provide duty advantages and easier market access, enabling the Company to strengthen its global footprint and build sustainable partnerships in key international bullion hubs.

Launch of Aurel Bullion Pro

In FY 2024-25, your Company introduced Aurel Bullion Pro, Indias first ChatGPT-powered assistant dedicated to physical bullion trading. Accessible exclusively through the ChatGPT platform, this AI-driven assistant guides customers step by step in physical bullion transactions, including live rate access, rate-locking, contract booking, and delivery navigation.

To access Aurel Bullion Pro, users simply need to log in to the ChatGPT application or web platform (available at chat.openai.com) and search for Aurel Bullion Pro. Once selected, the assistant becomes directly available for use, offering bullion-specific expertise in real time.

By embedding bullion expertise within ChatGPT, the Company has created a unique digital bridge between traditional bullion trading and next-generation AI engagement, strengthening transparency, education, and customer convenience.

Digital Assets Portfolio & Social Media Presence

During FY 2024-25, your Company intensified its focus on digital marketing as a key enabler for customer engagement and brand visibility. Recognising the growing importance of online platforms in reaching diverse customer segments, the Company has established a strong presence across multiple digital channels:

• Facebook & Instagram (@aurelbullion): Actively used to engage with customers through regular updates on live gold and silver rates, product launches, and educational content, while also building awareness around transparent physical bullion transactions.

• Google (Aurel Forever Yours): Featured as a trusted brand for gold and silver products, strengthening credibility and discoverability among both retail customers and trade participants.

• IndiaMART (Trust Seal Partner): Enhanced B2B visibility by showcasing gold and silver offerings to jewellers and bulk buyers, backed by verified credentials to ensure trust and compliance.

Your Company is steadily building a strong portfolio of digital assets to align with the evolving digital ecosystem. These include the Aurel Bullion App (a B2B physical bullion trading platform), the e-commerce website www.aureliewels.com, and Aurel Bullion Pro?an AI- powered ChatGPT assistant for bullion trading. Alongside these, a growing presence on social media platforms such as Facebook, Instagram (@aurelbullion), Google, and IndiaMART strengthens visibility and customer engagement, positioning the Company for sustainable digital- led growth.

Through these initiatives, the Company has been able to combine brand trust with digital reach, Reinforcing its identity as a dependable source for gold and silver bars, coins, and jewellery. while leveraging modern digital platforms to expand access, strengthen customer relationships, and support long-term growth.

Overall Strategic Direction & Next Theme: Lone Live Revolution ? Legendary Bhaeat Sineh

In an environment where speculation and opinion-driven trading dominate markets, regulators such as SEBI have raised serious concerns over the explosive growth of Futures & Options (F&O), where countless participants are burning hard-earned money. In response, your Company has envisioned a Physical Bullion Trading Platform?a revolutionary model that promotes 100% physical bullion trade with full GST compliance.

This initiative represents a call for structural change?shifting the focus away from speculative profit-chasing towards delivery-backed, transparent, and sustainable bullion trade. The concept is still in its evolving stage, with test runs already conducted to refine processes, strengthen compliance, and ensure smooth physical delivery.

The target customers for this platform go beyond traditional bullion buyers and jewellers. It is designed to attract a new generation of participants who prefer real, asset-backed trade as a legally compliant alternative to speculative platforms.

Importantly, your Company believes that by participating in this ecosystem, participants will not only trade physical bullion but also gain exposure to practical business disciplines such as GST compliance, Income Tax accountability, and proper bookkeeping practices. This will empower them to build a robust, legally aligned business framework, bridging the gap between trading and entrepreneurship in the bullion sector.

Your Company aspires to create a sustainable, education-driven bullion ecosystem, where every trade contributes to a transparent, compliant, and scalable bullion economy capable of supporting long-term growth.

OPPORTUNITIES

The bullion sector offers strong opportunities as gold and silver continue to serve as safe-haven assets, inflation hedges, and liquid stores of value, with rising affordability, e-commerce growth, and lifestyle shifts further boosting demand. Your Company is well-positioned to capitalise on these trends through its branded bullion products, systematic Gold and Silver Purchase Plans, Aurel Bullion App, and Aureljewels.com platform, complemented by niche jewellery offerings and a growing digital presence. Looking ahead, the Company is developing a Physical Bullion Trading Platform to enable 100% delivery-backed, GST-compliant trade, targeting both traditional bullion buyers and a new generation of customers seeking real, compliant, physical asset-based transactions.

THREATS TO PHYSICAL INVESTMENT DEMAND

While physical bullion remains a preferred choice, alternatives such as digital gold have been gaining traction, particularly among young, tech-savvy investors. Though Sovereign Gold Bonds (SGBs) had earlier posed a competitive threat with the added advantage of fixed interest, their discontinuation has reduced this risk. However, evolving investor preferences toward digital formats continue to present a structural challenge to physical demand.

II. OUTLOOK ON RISK AND CONCERNS:

• Capital intensity and price-level risk: The Company operates with a low capital base in a scale- driven industry. With domestic gold above Rs1,00,000 per 10g and silver around/above Rs1,00,000 per kg, the value of inventory, margins for hedging, and working-capital locks have surged, raising the bar for day-to-day liquidity. In addition, achieving Qualified Jeweller (QJ) status on IIBX requires ~Rs25 crores net worth, which currently constrains execution of scale initiatives.

• Global headwinds: U.S. tariff actions, policy shifts, and geopolitical tensions can disrupt crossborder flows, squeeze margins, and make planning uncertain.

• Evolving customer behaviour: A growing cohort prefers digital-first gold exposure, which can dilute growth in purely physical demand.

• Macroeconomic sensitivity: Consumer sentiment, inflation, currency moves, and broader economic stability directly affect offtake in both retail and B2B channels.

Long-term fundamentals remain supportive, but access to larger capital, elevated price levels, and external volatility are real constraints. Without adequate funding and a steadier global backdrop, the pace of scale-up will remain challenged, and execution of the Companys stated strategy may face delays or fall short of intended outcomes. In line with its long-term growth roadmap, the Company continues to explore prudent avenues to strengthen its financial base, with full adherence to the applicable regulatory framework.

III. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has a proper and adequate system of internal controls. This ensures that all transactions are authorized, recorded and reported correctly, and assets are safeguarded and protected against loss from unauthorized use or disposition.

IV. Discussion on financial performance with respect to operational performance

During the year, total income of your company was Rs. 3,95,401/-thousands as against net income of Rs.3,08,416/- thousands of the previous year. However, the Companys net profit after tax has been increased to Rs.2,918/-thousands for the current year as against the net profit after tax of Rs. 9,59/- thousands of the previous year due to increase in profit margin against expenditure incurred.

V. HUMAN RESOURCES & INDUSTRIAL RELATIONS:

The Companys human resources philosophy is to establish and build a strong performance and competency driven culture with greater sense of accountability and responsibility. The Company acknowledges that its principal asset is its employees. The total numbers of employees as on 31st March, 2025 were six.

VI. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIO:

Pursuant to provisions of Regulation 34(3) of SEBI (LODR) Regulation, 2015 read with Schedule V part B (1) Details of changes in Key Financial Ratios are given hereunder:

Sr. Ratio No.	Formula	2024- 2023-24 25		%	Reason for
		Ratio	Ratio	Variance	Variance
1 Current Ratio	Current Assets	41.11	63.22	-34.97	Decrease in Current Assets and increase in Current liabilities during the year
(Times)	Current Liability
2 Inventory Turnover Ratio	Net Sales	10.58	8.05	31.55	Increase due to increase in turnover and Decrease in inventories
(Times)	Inventory
3 Trade Receivable Turnover	Net sales	172.57	N.A	N.A
(Times)	Trade Receivables
4 Trade Payable Turnover Ratio	Net Credit purchase		N.A	N.A
(Times)	Average account payable
5 Net Capital Turnover Ratio	Net Sales	7.44	6.14	21.22	Increase due to Increase in turnover
(Times)	Shareholder Fund
6 Debt Equity Ratio	Total Debt	N.A	0.01	N.A.	Company Has Zero Debt
(Times)	total equity
7 Debt service Coverage Ratio	Operating Profit	N.A.	11.33	N.A.	Company Has Zero Debt
(Times)	Debt Service Cost
8 Net Profit Ratio %	PAT	0.74	0.31	137.30	Increase due to increase in PAT.
	Total Revenue
9 Return on Capital Employed %	PBT	7.58	2.47	207.07	Increase due to increase in Profit before tax
	Capital employed
10 Return On Equity Ratio %	PAT	5.49	1.91	187.50	Increase due to increase in PAT
	Shareholder Fund
11 Return on Investment (%)	PAT	5.36	1.88	187.50	Increase due to increase in PAT
	Total Assets

VII. CAUTIONARY STATEMENT:

This document contains forward-looking statements about expected future events, financial and operating results of the Company. These forward-looking statements are based on assumptions and the Company does not guarantee the fulfillment of the same. Accordingly, this document is subject to the disclaimer and qualified in its entirety by the assumptions, qualifications and risk factors referred to in the managements discussion and analysis of Amanaya Ventures Limiteds Annual Report, 2024-25.

	By Order of the Board of Directors
	Amanaya Ventures Limited
	Sd/-
Place: Amritsar	Rajni Mahajan
Date: 18th August 2025	Managing Director
	DIN: 02463524