Ausom Enterprise Ltd Management Discussions

(A) INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Company at present is engaged in one segment activity i.e. trading of commodities, bullions, gold jewellery, shares & securities, units of mutual funds, diamonds and derivative transactions etc. Being very ancient in its nature, the trading industry is well organized in all respect. During the last decade, establishment of exchanges for such trading activities has also contributed in making trading more organized and transparent.

(B) OPPORTUNITIES AND THREATS

(1) Opportunities

• The Company is totally debt-free and now being run by well experienced promoters with having two decades of insightful knowledge of this industry.

• Trading activities has turned out to be fruitful and there is a good scope of future growth and profitability.

• Experienced people in the field of commodities/bullions trading will manage the trading activities.

(2) Threats

• Foreign currency fluctuation, more particularly, dollar and pound.

• Volatility in Commodities and trading markets.

(C) SEGMENT WISE PERFORMANCE OR PRODUCT WISE PERFORMANCE

The Company is engaged in one segment activity, hence segment wise performance is not required. The activities, which the Company has started from last fifteen years emerging as very potential, growing and profitable. In the current year also the Company has achieved good turnover and good profit.

(D) OUTLOOK

The trading industry has grown in all respects and has shown very good potential. Under the globalization, the trading activity has more scope internationally and is growing manifold. Even after establishing NCDEX and MCX, various new platforms for F & O contracts will emerge in nearfuture.

(E) RISK AND AREA OF CONCERNS

• The trading business is a new line of business for the Company.

• There may be volatility in the trading market.

(F) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate internal control procedures commensurate with the size and nature of business. These procedures ensure efficient use and protection of the resources and compliance with policies, procedures and statutes. There is a periodical review mechanism for ensuring the sustenance and up-gradation of these systems.

(G) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE.

During the current year the Company has generated revenue of Rs. 2,39,253.35 Lakhs From Trading activity with a profit of Rs. 1,961.94 Lakhs (PAT).

(H) MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLYOED.

Recognizing that people are an important part of the organization, a major exercise in training and development of employees has been undertaken at all levels. The Company gives a lot of importance to Human Resource activities. These activities have helped to retain and motivate employees of the Company. As on ended the financial year 31^st March, 2025, there are total 2 Employees working.

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR

DEBTORS TURNOVER

2024-25	: 324.34 times
2023-24	: 52.58 times

Increase of 517.00%

Explanation: Increase is mainly on account of the increase in revenue from operation in the current financial year as compared to previous financial year.

INVENTORY TURNOVER

2024-25	: 621.75 times
2023-24	: 134.76 times

Increase of 361.00%

Explanation: Increase is mainly on account of decrease of inventory in proportion to the cost of goods sold in the current financial year as compared to previous financial year.

INTEREST COVERAGE RATIO

2024-25	: 453.20 times
2023-24	: 7.51 times

Increase of 5938.32%

Explanation: Increase is mainly on account of increase in the profit of current financial year as compared to previous financial year.

CURRENT RATIO

2024-25	: 2.60 times
2023-24	: 6.62 times

Decrease of 61%

Explanation: The decrease is primarily due to a disproportionate increase in current liabilities compared to the increase in current assets during the current financial year as compared to the previous financial year.

DEBT EQUITY RATIO

2024-25	: 0.00 times
2023-24	: 0.03 times
Decrease of 98%

Explanation: Lower ratio is mainly on account of repayment of current borrowings in the current financial year.

OPERATING PROFIT MARGIN

2024-25	: 0.82%
2023-24	: 0.95%

Decrease of 13%

Explanation: The decrease is primarily due to a disproportionate increase in revenue from operation compared to the increase in Net Profit after tax during the current financial year as compared to the previous financial year.

RETURN ON NET WORTH

2024-25	: 15.51%
2023-24	: 9.91%

Increase of 57%

Explanation: Increase is mainly on account of increase in the profit and reduction in the current borrowing of the current financial year as compared to previous financial year.

OPERATING PROFIT MARGIN

2024-25	: 0.82%
2023-24	: 0.95%

Decrease of 13%

Explanation: The decrease is primarily due to a disproportionate increase in revenue from operation compared to the increase in Net Profit after tax during the current financial year as compared to the previous financial year.

(I) DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH DETAILED EXPLANATION THEREOF

(J) DISCLOSURE OF ACCONTING TREATMENT

Financial Statement has been prepared as per Notes 2 (A) & (B) of forming part of Standalone & Consolidated Financial Statements for the year ended 31 March 2025.

(K) CAUTIONARY STATEMENT

Estimates and expectations stated in this Management Discussion and Analysis may be "forward-looking statement" within the meaning of applicable securities, laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to your Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and international markets, changes in the Government regulations, tax laws, other statutes and other incidental factors.

For AuSom Enterprise Limited

Place: Ahmedabad	Kishor P. Mandalia
Date: 7th August, 2025	Managing Director DIN:00126209