Deep Diamond India Ltd Management Discussions

Your Directors are pleased to present the Management Discussion and Analysis Report for the year ended March 31, 2025.

The Management Discussion and Analysis have been included in consonance with the Code of Corporate Governance as approved by The Securities and Exchange Board of India (SEBI). Investors are cautioned thatthese discussions contain certain forward-looking statements that involve risk and uncertainties including those risks which are inherent in the Companys growth and strategy. The company undertakes no obligation to publicly update or revise any of the opinions or forward-looking statements expressed in this report consequent to new information or developments, events or otherwise.

The management of the company is presenting herein the overview, opportunities and threats, initiatives by the Company and overall strategy of the company and its outlook for the future. This outlook is based on managements own assessment, and it may vary due to future economic and other future developments in the country

Forward looking statement:

The Statements made in this report describe the Companys objectives and projections that may be forward looking statements which are based on certain assumptions and expectations of future events. The Companys actual results may differ materially from those projected in any such forward- loo kin g statement depending on economic conditions, government policies and decisions which are beyond the control of the Company.

Segment-wise or product-wise performance:

The Company falls within two business segments viz. diamond Jewellery and Pharmaceuticals. The sales are substantial in the domestic market and the said financial statements are reflective of the information required by Accounting Standard 17 "Segment Reporting", notified under the Companies (Accounting Standards) Rules, 2006.

The Company continues to be engaged in activities pertaining to sale of gold and diamond studded Jewellery.

Further the Company has also engaged itself in the new business segment pertaining to marketing of pharmaceutical goods in India during the year under review.

Internal Control Systems:

The Company has in place an adequate and effective internal audit and control systems which ensure efficiency in operations, and optimum use of resources. Internal Control weaknesses are reported regularly, and timely steps are taken as and when required. The effectiveness of the internal control systems is constantly monitored by the Audit Committee set up by the Board and the required changes are introduced as and when necessary.

Risk Management:

Your Companys risk management system comprises of prudential norms, timely reporting, and stringent controls.

Opportunities and Threats

Some of the key trends of the industry that are favorable to the company to exploit these emerging opportunities are:

Clients are more comfortable with the uniform high quality and quick service and process across the enterprise.

There are good prospects for expanding further activities in this direction.

Some of the key changes in the industry unfavorable to the company are:

Heightened co mpetitio n

Increasing Compliances

Attraction and retention of human capital.

Regulatory changes.

Segment-wise/Product-wise Performance:

Your Company has two reporting segments. The revenue from operations from Diamond-Jewellery and Pharmaceutical segment for the year is Rs.20,90,863/- and Rs.1,05,00,000/- respectively and the combined net profit after tax from both the segments is Rs. 1,92,28,292/-.

Human resources:

Your company has been able to employ and retain qualified professionals by offering a challenging work environment and compensation. The Company provides in-house training to its employees.

The Management believes in maintaining cordial relations with its employees. The management recognizes the importance of Human Resources and effective steps

will be taken to strengthen the same depending on the requirements.

The Company provided an excellent working environment so that the individual staff can reach his/her full potential.

The Company is poised to take on the challenges and march towards accomplishing its mission with success.

The Company maintained good Industrial/Business relations in the market which enhanced the Creditworthiness of the Company.

Insurance:

The Company has insured its assets and operations against all insurable risks including fire, earthquake, flood etc. as part of its overall risk management strategies

Key Financial Ratios:

In accordance with the Securities and Exchange Board of India (Listing Obligations and Disclosures Requirements) (Amendment) Regulations, 2018, the Company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in Key sector-specific financial ratios.

The Company has identified the following ratios as key financial ratios:

Particulars	F.Y. 2024- 25	F.Y. 2023- 24
Current Ratio 1	3.16	2.21
Debt Equity Ratio	0.03	0.08
Return on Equity Ratio 2	4.03	2.38
Trade Receivables Turnover Ratio 3	1.28	1.24
Trade Payables Turnover Ratio 4	0.23	0.49
Net Capital Turnover Ratio	36.30	80.20
Net Profit Ratio 5	68.36	16.39
Return on Capital Employed 6	4.61	1.77

1 Increase in current ratio due to Regrouping /rearrangement of Current Loans/Advances into Non-Current Loans/Advances.

2 The Return on Equity Ratio is Increased due to Increase in Turnover in Current financial year.

3 Trade Receivable Turnover Ratio is Increased due to collection of old receivables during the current financial year in to consideration.

4 The Trade Payable Turnover Ratio is decreased, as there was a decrease in total purchases during the year underconsideration.

5 The Net Profit Ratio has increased, as there is an increase in profit during the year into consideration.

6 The Return on Capital Employed Ratio is Increased due to Increase in turnover and decrease in Profit in the current financial year.

Financial Performance

The Financial performance of the Company for the year ended March 31, 2025, is as follows:

Total revenue from operations at Rs.125.90 Lacs for the year ended March 31, 2025 as against Rs. 255.61 Lacs for the corresponding previous period, decline of 50.74 %. The reason of decline in the turnover being the company has reduced business of Jewellery and focused on the business of Pharmaceuticals.

The EBIDTA (Earnings before Interest, Depreciation and tax) was Rs.217.13 Lacs for the year ended March 31, 2025, as against Rs. 84.50 Lacs for the corresponding previous period, a increase of 61.08% mainly due higher revenue and low operating costs.

EBIDTA margin for the year ended March 31, 2025 is 61.08% as compared to 23.17% for the corresponding previous year ended March 31, 2024.

Net Profit was Rs.192.28 Lacs in FY 2025 as against Rs. 68.55 Lacs in FY 2024. Net Profit margin increased to 37.91% in FY 2025 from 16.39% in FY 2024.

EPS was 0.40 in FY 2025.

Cautionary Statement:

The statement in the Management Discussion and Analysis describing the Companys objectives, exceptions or predictions may be forwards looking within the meaning of applicable securities, laws, and regulations. Actual results may differ materially from those expressed in the statement. Several factors could make a significant difference to the companys operation. These include climatic conditions and economic conditions affecting demand and supply, government regulations and taxation, natural calamities etc. over which the company does not have any control.

For and on behalf of the Board

For and on behalf of Deep Diamond India Limited

SD/- SD/-

Narayan Singh Rathore Laveena Pokharna

Managing Director Whole Time Director & CFO

DIN: 10900646 DIN: 10977709

Date: August 28, 2025 Date: August 28, 2025

Place: Mumbai Place: Mumbai

Address: 309, 03 rd Floor, V Star Plaza,

Plot No. 16, Chandavarkar Road, Borivali (W), Mumbai-400092, MH, India

Address: 309, 03 rd Floor, V Star Plaza,

Plot No. 16, Chandavarkar Road, Borivali (W), Mumbai-400092, MH, India

CEO & CFO Certificate under Regulation 17(8) read with Part B of schedule II and Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To,

The Board of Directors of Deep Diamond India Limited

I undersigned, in our respective capacities as Chief Financial Officer of Deep Diamond India Limited ("the Company"), to the best of our knowledge and belief, we state that:

I have reviewed the Financial Statements and the cash flow for the year ended on March 31, 2025, and that to the best of our knowledge and belief:

These statements do not contain any materially untrue, misleading statement or figures or omit any material fact or contain statements that might be misleading;

These statements together present a true and fair view of the Companys affairs and are in compliance with existing accounting standards, applicable laws, and regulations.

There are, to the best of our knowledge and belief no transactions entered into by the listed entity during the year ended on March 31, 2025, which are fraudulent, illegal, or violative of the Companys Code of Conduct.

We accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated the effectiveness of internal control systems of the Company pertaining to Financial Reporting and they have disclosed to the Auditors and the Audit Committee, deficiencies in the design or operation of internal controls if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies.

We have indicated to the Auditors and the Audit Committee:

that there are no significant changes in internal control over financial reporting during the quarter ended March 31, 2025.

that there are no significant changes in accounting policies during the quarter; and that the same have been disclosed in the Notes to Financial Statement and

that there are no instances of significant fraud of which we became aware and the involvement therein if any, of the Management or an employee having a significant role in the companys internal control system over financial reporting.

For and on behalf of the Board

For and on behalf of Deep Diamond India Limited

SD/-

Laveena Pokharna

Whole Time Director & CFO DIN: 10977709

Date: August 28, 2025

Address: 309, 03 rd Floor, V Star Plaza, Plot No. 16, Chandavarkar Road, Borivali (W), Mumbai-400092, MH, India