Ashapuri Gold Ornament Ltd Management Discussions

<dhheadManagement Discussion And Analysis </dhhead

Fiscal Year 2024-25 was a landmark year for Ashapuri Gold Ornament Limited, one in which our strategic vision translated into exceptional execution and outstanding financial results. It was a year defined by the successful execution of our strategic pivot towards forging deeper, more meaningful partnerships with large, national corporate clients. This focus is clearly reflected in our robust financial performance, which saw us achieve significant milestones and set new benchmarks for the Company.

We are proud to report that our total revenue crossed the significant milestone of INR 300 Cr, nearly doubling from the previous year. This top-line growth was accompanied by a healthy expansion in our profitability metrics, the inherent strength and scalability of our B2B manufacturing model and our unwavering commitment to operational excellence. A defining achievement of the year was the onboarding of Titan Company Limited, the parent company of Indias iconic Tanishq brand, as a corporate client. This partnership is more than just a new business account; it is a powerful validation of our capabilities. It serves as a testament to our stringent quality standards, our innovative design prowess, and the reliability of our supply chain, affirming our position as a manufacturer of choice for the industrys most respected names. Looking ahead, we are confident that this performance is not an anomaly but the beginning of a new, sustained phase of high growth. Our strategic direction is clear, our operational foundations are stronger than ever, and our relationships with our partners are deep-rooted. We are poised to continue building on this momentum, driving value for our shareholders, and solidifying our leadership position in the Indian jewellery manufacturing landscape.

Economic overview

Global Economy

According to the IMFs April 2025 World Economic Outlook, global growth is projected to slow to 2.8% in 2025 and 3% in the following year, down from an earlier estimate of 3.3%. This revision reflects growing trade tensions and a wave of historic tariff hikes introduced by the United States, contributing to softer global demand, increased policy uncertainty, and fragmented trade flows.

Emerging markets and developing economies are expected to expand at 3.7%, though they face headwinds from disrupted trade especially China, whose growth outlook has been revised to 4.5%. In contrast, India remains a standout performer with projected growth of 7.0%, underpinned by robust domestic consumption, infrastructure investments, and structural reforms.

Global inflation is expected to moderate to 4.3% in 2025, althoughthepaceofdisinflationis slower than previously anticipated, particularly in advanced economies where inflation expectations have been revised upward. Amidst this uncertainty, global infrastructure investment especially in digital and sustainable assets is being increasingly recognised as a foundation for long-term growth and economic resilience.

From the managements perspective, this global trend provides a strong and supportive backdrop for our business. While global economic headwinds present challenges across various sectors, the heightened investor interest in gold establishes a fundamentally strong price floor for our core commodity. More importantly, this global sentiment positively reinforces the intrinsic value of gold jewellery as a tangible asset class within our primary domestic market. Indian consumers, who have a deep cultural affinity for gold, view this global validationas confirmationof their own long-held beliefs, further strengthening the appeal of gold not just for adornment but as a critical component of household savings and wealth preservation.

Indian Economy

According to PIB Indias economy maintained strong momentum in FY25, recording 6.5% real GDP growth, making it one of the fastest-growing major economies globally. This growth was broad-based, with notable contributions from manufacturing, construction, mining, and public administration. High-frequency indicators such as GST collections, e-way bills, and UPI transactions indicated continued economic dynamism.

CPI inflation moderated to 5.4%, down from 6.7% in FY23, driven by supply-side measures and timely monetary action by the Reserve Bank of India. A decline in food inflation towards the year-end supported consumer sentiment.

The central government maintained its fiscal consolidation roadmap, bringing down the fiscal deficit to 5.8% of GDP. Gross tax revenues saw 13.5% growth, led by buoyant direct tax collections. Capital expenditure reached a record high of INR10 lakh Cr, further reinforcing infrastructure development and job creation. Despite global headwinds, the external sector remained stable, with strong merchandise and services exports and robust foreign exchange reserves.

Industry Overview

Indian Jewellery Industry

Indias gold jewellery sector continued to evolve in Q2 2025, with consumption increasing 24% QoQ to 88.8 tonnes. Despite price volatility, the market grew 17% YoY and an impressive 43% QoQ in value terms, highlighting the dual role of gold as both a lifestyle product and an investment (World Gold Council).

The World Gold Council estimates that gold demand in India will remain resilient in 2025, ranging between 700 800 tonnes, even after a 31% YoY rise in value terms in 2024. Consumer behaviour is adapting to price-sensitive conditions, with a growing preference for lightweight designs, 18k jewellery, and gold-plated options. Urban youth are especially inclined towards modern, wearable styles, while affluent buyers continue to drive steady demand (World Gold A marked increase in demand for hallmarked jewellery and price transparency reflects the sectors shift toward greater consumer trust and standardisation. Indias Gems & Jewellery market, valued at US$ 78.50 billion in FY21, is projected to grow to US$ 117 billion by FY31, supported by rising disposable income, urbanisation, and the expansion of organised retail and digital platforms (IBEF).

Market Dynamics and Consumer Evolution

The market is on a clear and formidable growth path. Valued at approximately US$85-90 billion, the Indian Gems & Jewellery market is projected to expand significantly, with some estimates suggesting it could reach US$120 expansion is fundamentally powered by Indias strong macroeconomic fundamentals, including rising disposable incomes and rapid urbanization. However, the nature of demand itself is evolving. Todays consumer is more discerning, informed, and aspirational. While the cultural and emotional connection to gold remains steadfast, preferences are shifting towards lightweight, design-led, and more wearable jewellery suitable for a variety of occasions beyond weddings and major festivals. This is particularly true among younger, urban demographics. Furthermore, there is a marked increase in demand for transparency, with consumers insisting on BIS hallmarking and clear pricing policies, reflecting a move towards greater trust and standardization. Even amidst price volatility, the underlying demand remains robust. However, record-high domestic gold prices have impacted affordability, leading to a projected decline in consumption volume in 2025. Despite this, the value of gold consumption in India continues to grow, demonstrating the consumers enduring affinity for gold as both a cherished adornment and a sound investment.

Indian Gold Market

India remains a global leader in gold consumption. In Q2 2025, demand for gold bars and coins reached 46.1 tonnes a 7% YoY increase marking the eighth straight quarter of growth. Investor confidence, buoyed by rising of further appreciation, contributed to this upward trend. However, high gold prices also led to increased demand for smaller denominations, particularly coins below 10 grams.

Jewellery demand, though pressured by affordability concerns, still rose 24% QoQ to 88.8 tonnes. The INR 1,00,000/10g psychological threshold impacted mass-market buyers, but overall gold jewellery consumption in value terms grew 17% YoY, reinforcing golds status as a store of value.

Recycling activity remained low, with many consumers preferring to exchange old jewellery or use it as collateral instead of selling outright. Estimates indicate that between 90 120 tonnes of gold were pledged for loans in H1 2025. Amid this complex environment, Gujarat-based manufacturers like Ashapuri Gold Ornament Limited have remained trusted partners to Indias retail sector. By offering design innovation, transparent pricing, and timely order fulfilment, company has helped its B2B clients adapt to changing consumer dynamics. Whether serving traditional needs or catering to emerging tastes, Ashapuri Gold Ornament Limited continues to demonstrate agility, trust, and product excellence in a fast-evolving gold market.

Gujarat: A Key Jewellery Manufacturing Hub

Gujarat continues to play a central role in Indias jewellery ecosystem, with cities like Ahmedabad and Surat emerging as pivotal B2B manufacturing and distribution centres. The state benefits from a rich infrastructure, and a supportive business environment, making it an ideal base for gold jewellery manufacturers supplying retailers across the country.

B2B Jewellery Market Trends

The B2B jewellery segment witnessed sustained momentum in FY25 as organised retail chains increasingly partnered with reliable manufacturers for consistent supply and customisation. There is a clear shift towards culturally inspired, lightweight, and bespoke designs with faster turnaround times.

Ashapuri Gold Ornament Limited is strategically positioned to serve this evolving market. With a vast and diverse design repository, advanced manufacturing capabilities, and strong relationships with its retail clients, the company continues to meet the nuanced needs of its B2B partners. Its deep understanding of regional preferences and agile production processes ensure timely delivery of trend-aligned collections without compromising on quality or craftsmanship.

Government Initiatives

FY25 26 witnessed a series of government policy measures aimed at formalising the gems and jewellery sector, enhancing transparency, and promoting exports. The MSME turnover cap was raised from 250 Cr to 500 Cr, enabling more jewellery businesses to access financing and participate in government tenders. The removal of IGCR restrictions on duty-free imports of lab-grown diamond seeds has further boosted sustainable domestic production (PIB Press Release).

. This To strengthen exports, the government launched a new Export Promotion Mission and invested in skill development through National Centres of Excellence. Revisions to the Foreign Trade Policy, coupled with better coordination between the DGFT and budgetary provisions, have streamlined import export processes. In addition, mandatory BIS hallmarking, wider adoption of digital payments, and stronger transaction reporting are reinforcing consumer confidence and sectoral transparency (PIB Press Release).

A key highlight in the Union Budget 2025 26 was the reduction in customs duty on jewellery items (HS 7113) from 25% to 20%, lowering input costs, improving competitiveness for B2B clients, and enhancing all reforms, the nationwide rollout of mandatory BIS hallmarking is the most transformative, setting higher compliance standards and creating barriers for unorganised players. For Ashapuri Gold Ornament Limited, as a fully compliant BIS-certified manufacturer, these policy changes serve as strategic enablers strengthening our value proposition, improving trust, and positioning us strongly in a more transparent and formalised industry landscape (PIB Press Release).

Duty Cuts on Precious Metals to Boost the Jewellery Sector

The Union Budget 2025 26 introduced significant customs duty reductions toenhanceaffordability and stimulate domestic demand for precious metal jewellery. The duty on jewellery items (HS 7113) was lowered from 25% to 20%, while platinum findings witnessed a sharp reduction from 25% to just 5% (PIB Press Release, Budget 2025 26).

In addition, new tariff codes were introduced for ultra-pure grades of gold ( 99.5%), silver ( 99.9%), and platinum ( 99%), streamlining imports under free trade agreements and simplifying compliance (The Retail Jeweller, PIB Press Release). These measures are expected to reduce manufacturing costs, improve retail price competitiveness, and drive growth in premium categories such as platinum and lab-grown diamonds. They also open up greater opportunities in semi-urban markets while strengthening Indias position as a leading global hub for high-value jewellery manufacturing and exports (Budget 2025 26).

Our Single Largest Opportunity

Within Indias fast-growing jewellery market, the single largest opportunity for Ashapuri Gold Ornament Limited lies in the the ongoing “Great Consolidation” of the supply chain. While organized retail already accounts for ~38% of consumer sales and is expected to reach 45 50% by FY30, organized manufacturing remains only ~11%, leaving a vast gap dominated by fragmented, unorganized players. As leading national retailers like Tanishq, Malabar Gold & Diamonds, and Kalyan

Jewellers expand aggressively, their success hinges on compliant, scaled, and reliable manufacturing partners. With our BIS-certified facilities, design expertise, and proven supply reliability, Ashapuri is uniquely positioned as a critical enabler of this formalisation making our growth directly aligned with and propelled by the expansion of organized jewellery retail in India.

About Ashapuri Gold Ornament Limited

Incorporated in 2008, Ashapuri Gold Ornament Limited (AGOL) has grown to become one of Indias most trusted and admired names in gold jewellery manufacturing. Headquartered in Ahmedabad, Gujarat, the company boasts a legacy of over 27 years rooted in timeless design, meticulous craftsmanship, and a commitment to uncompromising quality. AGOL serves a wide spectrum of B2B clients, from renowned jewellery houses in major metropolitan cities to retailers in fast-growing urban centers. Its expansive portfolio of over 25,000+ unique designs, produced through advanced manufacturing infrastructure and a team of 200+ skilled artisans, underscores its dedication to innovation and customer satisfaction. With a sharp focus on modern aesthetics grounded in cultural elegance, AGOL continues to shape the future of Indias gold jewellery landscape. The company invites jewellers from across India and abroad to become part of its journey at one of the countrys largest B2B jewellery hubs.

AGOLs consistent growth and market credibility were further cemented with its successful IPO on the BSE SME platform in March 2019, raising INR 30 Cr. Check font AGOL is offering multiple collections (Kaavis, Maayin, Arzish, Anaya brands).This segmentation enables precise inventory management and targeted offerings. The company caters to 30+ corporate clients across 11+ states, including Gujarat, Delhi, Rajasthan, Uttar Pradesh, Punjab, Maharashtra, and West Bengal.

Key initiatives taken in FY25:

Enhanced CAD-based design and 3D prototyping for faster customisation - Participation in B2B trade events to build deeper buyer connections - Implementation of ERP systems to streamline production and order tracking

Financial Performance Review: A Story of Accelerated Growth

The financial results for FY25 narrate a compelling story of accelerated growth, operational leverage, and prudent financial management. Our performance across all key metrics demonstrates the successful execution of our strategy and the increasing demand for our products and services.

Our top-line momentum was exceptionally strong. Total Income for FY25 surged by an impressive 90.2% to INR 317.41 Cr. This remarkable growth was not incidental; it was the direct result of our focused strategy to align with and supply to large, organized national retail chains, which are themselves in a high-growth phase. This revenue growth translated efficiently into enhanced profitability, showcasing the operational leverage inherent in our business model. Our Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by a healthy 47.8% to INR 17.23 Cr in FY25 from INR 11.65 Cr in the previous year. More impressively, our Profit After Tax increased by a robust 56.9% to INR 12.04 Cr from INR 7.67 Cr in FY24. This bottom-line performance is the culmination of higher volumes, better absorption of fixed costs, and disciplined expense management. The sustained nature of this growth is highlighted by the phenomenal two-year PAT CAGR of 160% from FY23 to FY25. Underpinning this stellar operational performance is a fortress balance sheet, which has been managed with prudence and foresight. We have maintained a conservative capital structure, as evidenced by our negligible Debt-to-Equity ratio, which stood at just 0.004 as of March 31, 2025, a significant reduction from 0.08 in FY23. This virtually with immense financial flexibility and resilience, allowing us to pursue future growth opportunities organically and without the burden of high financing costs. The successful completion of our INR 55 Cr rights issue in 2024 further fortified our balance sheet, providing the necessary growth capital to fund our strategic initiatives.

Particulars	FY23	FY24	FY25	CAGR
Total Income (INR Cr)	158.14	166.85	317.41	41.67%
EBITDA (INR Cr)	3.77	11.65	17.23	113.78%
EBITDA Margin (%)	2.38%	6.98%	5.43%	-
PAT (INR Cr)	1.78	7.67	12.04	160.08%
PAT Margin (%)	1.13%	4.60%	3.79%	-
EPS (Basic, INR)	0.07	0.30	0.38	132.8%
Net Worth (INR Cr)	82.53	89.96	146.67	33.3%

Financial Ratios

Ratios	FY 2024-25	FY 2023-24	% Change	Remark ? The Reason For Any change in the ratio by more than 25% as compared to the preceding year. An Increase in Revenue on Cash, Low
Debtors Turnover/ Trade Receivable Turnover Ratio	12.28	7.34	67.30	Credit period and Expansion of customer base is reason for increase in Debtor Turnover
Creditors Turnover/ Trade Payable Turnover Ratio	405.81	190.17	113.39	An increase in purchase of goods, prompt and timely payment to creditors is reason for increase in this ratio. Inventory Turnover ratio has increased
Inventory Turnover	3.95	2.85	38.77	due to increase in Inventories of the Company.
Interest Coverage	42.34	22.62	87.18	The Debt Service Coverage Ratio (DSCR) high because no major borrowings during the year. Current ratio has increased due to
Current Ratio	21.00	15.98	31.39	increase in Inventories of the Company.
Debt Equity Ratio	0.00	0.02	-82.02	Decrease in borrowing and increase in equity is attributed to decrease in debt equity ratio.
Return on Equity Ratio	36.11	30.68	17.69	- Increase in sales and better
Net Capital Turnover Ratio	2.99	2.31	29.48	management of liquidity/capital is reason for increase of this ratio.
Operating Profit Margin %	5.43	7.06	-23.90	-
Net Profit Margin %	3.79	4.65	-18.34	-
Return on Investment provides us	0.00	13.61	-99.98	The Investment was made in Share of Company/Mutual Funds and the returns solely depends upon the Share Market Positions.
Return on Capital Employed	11.23	11.92	5.76	-

Operational Highlights: The Strategic Pivot in Action

The operational story of FY25 is one of deliberate and decisive strategic transformation. The remarkable financial results were underpinned by a conscious and successful pivot in our client engagement model, shifting our focus towards building long-term, strategic relationships with large, national corporate clients.

The most compelling evidence of this successful pivot lies in the dramatic shift in our revenue mix. In FY24, revenue from our Corporate Clients segment stood at INR 51.33 Cr, representing 31.1% of our total revenue from operations. In FY25, this figure grew by an astounding 334% to INR 222.89 Cr, now accounting for 70.46% of our operational revenue. This is not a random fluctuation; it is the direct outcome of a focused strategy to align our business with the most stable, high-growth segment of the jewellery retail market. This strategic shift was headlined by the landmark onboarding of Titan Company Limited as a key corporate client. Securing a partnership with the owners of the Tanishq brand, a name synonymous with trust and quality in India, is a powerful endorsement of Ashapuri Gold Ornament limiteds capabilities. It validates our ability to meet the most stringent norms related to quality, design consistency, supply chain management, and ethical compliance. This success has created a flywheel effect, enhancing our credibility and opening doors to further partnerships with other leading national and regional retail chains. Our operational footprint has expanded in tandem with this strategic client growth. We now have a robust supply presence across more than 11 states in India, serving a network of over 2,300 retail outlets through our esteemed B2B partners. Our strengthened regional sales force in key markets like Gujarat, Delhi, Mumbai, and Bangalore continues to drive deeper engagement and support the expansion plans of our clients, ensuring that our growth is geographically diversified and sustainable.

Our Blueprint for Capturing the Future

As we look to the future, our strategy is clear, focused, and built upon the foundations of our success in FY25. Our overarching goal is to deepen and solidify our position as the indispensable manufacturing partner for Indias jewellery leaders. We will achieve this by executing a multi-pronged strategy that directly capitalizes on the structural market opportunities we have identified and leverages our core competitive advantages.

Our blueprint for sustained growth is built on the following strategic imperatives:

Deepening Market Penetration & Wallet Share: Our growth is intrinsically linked to the growth of our partners. We will continue to expand our geographic footprint by supporting our retail partners expansion plans, particularly in the high-potential Tier 2 and Tier 3 cities where organized retail is growing fastest. Concurrently, we will execute our "Wallet Share Strategy," which aims to become a comprehensive, one-stop solution for our existing clients. By expanding our product offerings across different categories and price points, and by leveraging our best-in-class customization capabilities, we aim to capture a larger share of our partners total procurement budget, thereby deepening our relationships and creating significant organic growth. Forging Long-Term Strategic Partnerships: We are actively transitioning our client relationships from transactional to strategic. A key initiative is to secure long-term supply agreements with our major national and regional clients. These agreements will provide greater revenue visibility and predictability, enhance our operational and capacity planning, and formally cement our role as a strategic partner invested in our clients success, rather than being just another vendor in their supply chain. Driving Design-Led Innovation: In a market driven by evolving tastes, design is a critical differentiator. Our library of over 18,000 designs is a living asset that we will continue to enrich. We will increase our investment in our in-house design team and our CAD/CAM technological capabilities to accelerate the launch of trend-focused seasonal and festive collections. Furthermore, we will continue to enhance our bespoke customization services, empowering our B2B clients to offer exclusive and personalized products that command premium pricing and foster immense customer loyalty. Embracing Digital Transformation: To enhance efficiency and improve the client transformation across our B2B operations. This includes upgrading our digital infrastructure to provide our partners with improved online catalogues, seamless order management systems, and real-time production tracking. This investment will not only streamline our current processes but will also lay the groundwork for future omnichannel synergies, aligning with industry trends toward virtual try-on experiences and enhanced e-commerce capabilities. By building a robust digital backbone, we can enable capabilities like virtual try-on experiences for our partners e-commerce platforms, further integrating ourselves into their value chain.

Industry Trend / Opportunity	AGOLs Strategic Action
Structural Shift to Organized Manufacturing	Investment in and operation of a 14,000+ sq. ft. BIS-certified facility at 93% utilization. Proactively onboarding national brands like Titan Co. Ltd. to lead the industry consolidation.
Government-led Formalization (Mandatory Hallmarking)	Maintaining 100% compliance with BIS hallmarking standards, leveraging it as a key quality differentiator and a competitive advantage unorganized sector.
Favorable Policy (Customs Duty Reduction)	Strategically leveraging reduced duties to enhance the price competitiveness of our offerings for B2B partners, thereby stimulating demand and strengthening our value proposition.
Growing Demand for Customization & Design	Expanding our in-house team of 300+ artisans and designers, leveraging our 18,000+ design library, and enhancing CAD/CAM capabilities to scale our bespoke jewellery solutions.
Retail Expansion into Tier 2/3 Cities	Strengthening our regional sales force and logistics network to support the network expansion of our B2B partners into emerging high-growth markets.
Need for Reliable, Scaled Supply Chains	Executing a “Wallet Share Strategy” and pursuing long-term supply agreements to become a one-stop, strategic procurement partner for national retail chains.

SWOT Analysis

• Strengths

Ashapuri leverages a BIS-certified facility with 200+ artisans and 93% capacity utilisation, ensuring quality and faster delivery through complete in-house manufacturing. Its wide B2B network across 11 states, 25,000+ design portfolio, proprietary collections, flagship showroom, and 60+ years of promoter experience collectively strengthen its leadership in both mass and premium jewellery segments.

• Weaknesses

The business faces rising customer expectations, requiring constant investment in design and digital capabilities. At the same time, compliance with BIS, GST, and gold import norms adds operational complexity, while intense competition from national, regional, and online players creates pricing pressure and retention challenges.

• Opportunities

Growth potential lies in expanding to Tier II and III cities, scaling exports, and leveraging digital platforms such as e-commerce and virtual try-ons. Ashapuris extensive design library enables seasonal, trend-led collections, while growing demand for customised bridal and antique jewellery and stronger partnerships with corporate clients present further growth avenues.

• Threats

Regulatory changes in hallmarking, gold duties, or trade policies can impact costs and operations, while heightened competition from organised and digital-first brands threatens margins and market positioning. Sustained focus on compliance, innovation, and brand differentiation will be critical to mitigating these risks.

Risk Management and Mitigation

While we are optimistic about our future, we operate in a dynamic environment and maintain a robust framework for identifying, monitoring, and mitigating potential risks to our business.

• Competition and Pricing Pressure: The Indian jewellery market is intensely competitive and fragmented, which can lead to pricing pressure. Our primary mitigation strategy is to compete on value, not just price. Our scale, design differentiation, vertically integrated manufacturing, and the trust we have built through long-term client relationships create a strong competitive moat. The high barriers to entry created by stringent compliance and quality requirements for supplying to organized retail also insulate us from a significant portion of the unorganized

• Geopolitical and Trade Risks: The global trade environment is subject to increasing volatility. The recent imposition of significant reciprocal tariffs by the United States on Indian goods, including jewellery, oriented revenue streams. We are mitigating this risk by actively strengthening our focus on the robust and growing domestic market, which forms the core of our business. We are also strategically exploring and expanding our presence in alternative export markets, such as the Gulf region, which benefit from favorable trade agreements like the India-UAE CEPA.

• Regulatory and Policy Changes: The regulatory landscape is subject to change. Potential shifts in gold import duties, GST regulations, or hallmarking standards could impact our operations. We mitigate this risk through proactive monitoring of all policy developments and active engagement with industry bodies. Our deeply embedded culture of compliance and operational agility ensures that we can adapt swiftly to any changes, often turning new regulations into a competitive advantage.

• Gold Price Volatility: Fluctuations in the price of gold, our primary raw material, present a risk to our margins and working capital. We manage this risk through a disciplined approach that includes prudent inventory management, back-to-back order fulfillment where possible, and established hedging policies that coordination with our B2B clients to ensure transparency and shared risk management.

• Design Replication and Intellectual Property: In the jewellery industry, the unauthorized replication of unique designs is a persistent challenge. While legal recourse is an option, our most effective mitigation strategy is continuous innovation. By constantly refreshing our collections, leveraging our vast design library, and maintaining a rapid pace of new product development, we ensure that our design pipeline always stays ahead of the market, rendering imitation a lagging and ineffective strategy for competitors.

Human Resources

Ashapuri Gold Ornament Limited recognizes its people as the backbone of its artisanal excellence and B2B-driven growth. As of March 31, 2025, the company employed 90 professionals across various roles, supported by 200 skilled jewellery artisans (karigars) and a dedicated in-house design team of 7 specialists. The average employee experience stands at an impressive 10 years, reflecting the companys deep-rooted culture of craftsmanship and commitment.

The organization nurtures a collaborative and performance-oriented work environment, underpinned by a legacy of trust and transparency. The in-house team specializing in antique handcrafting is central to maintaining Ashapuri Gold Ornament Limiteds design authenticity and production agility.

With continued expansion, the company has intensified its focus on human capital development. Training programs, skill enhancement initiatives, and artisan retention strategies remain core to ensuring consistent delivery, aesthetic excellence, and scalable growth. Human capital development remains a core enabler of Companys B2B growth strategy, especially as it strengthens its presence across Tier 1 and Tier 2 retail markets.

Internal Control

The Company has set up a proper and adequate and sound internal control system to safeguard the Groups assets and to enhance shareholders investment, as well as reviewing its adequacy and effectiveness of the said system. The duty of reviewing the adequacy and effectiveness of the internal control system has been assigned to the Audit Committee (“AC”), to seek assurance on the adequacy and effectiveness of the internal control system through reports it receives from independent reviews conducted by the Internal Auditor. The Company constantly reviews its processes and the systems with an aim to remain competitive and address the changing regulatory and business environment. The Control Systems provide a reasonable assurance of recording the transactions of its operations in all material aspects and of providing protection against misuse or loss of Companys assets. The external auditors as well as the internal auditors periodically review the internal control systems, policies and procedures fortheiradequacy,effectiveness and continuous operation for . addressing risk management and mitigation strategies.

Cautionary Statement risk to export-

This document includes forward-looking statements that express the Companys current expectations, intentions, or projections regarding its future performance. These statements are based on reasonable assumptions and information available as of FY25. However, actual results may vary significantly due to various internal and but not limited to changes in economic conditions, government policies,competitivepressures,andmarketfluctuations. The Company undertakes no obligation to revise or update any forward-looking statements unless required by applicable laws or regulations.