Fascinate Textiles Ltd Management Discussions

RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations for the
financial years ended on March 31, 2025, 2024, and 2023 is based on, and should be read in conjunction
with, our Restated Financial Statements, including the schedules, notes and significant accounting
policies thereto, included in the chapter titled "Restated Financial Statements" beginning on page 255
of this Draft Red Herring Prospectus. Our Restated Financial Statements have been derived from our
audited financial statements and restated in accordance with the SEBIICDR Regulations and the ICAI
Guidance Note. Our financial statements are prepared in accordance with AS.

You should read the following discussion of our financial condition and results of operations in
conjunction with our Restated financial statements attached in the chapter titled "Financial
Information" beginning on page 255 included in this Draft Red Herring Prospectus. You should also
read the section titled "Risk Factors" on page 43 and the section titled "Forward Looking Statements"
on page 26 of this Draft Red Herring Prospectus, which discusses a number of factors and contingencies
that could affect our financial condition and results of operations. Our Financial Statements, as
Restated have been derived from our audited Financial Statementfor the respective years. The following
discussion relates to us, and, unless otherwise stated or the context requires otherwise, is based on our
Restated Financial Statements.

Our financial statements have been prepared in accordance with Indian GAAP, the Companies Act and
the SEBI (ICDR) Regulations and restated as described in the report of our auditor which is included
in this Draft Red Herring Prospectus under "Financial Statements" on Page 255. Our financial year
ends on March 31 of each year, and all references to a particular financial year are to the twelve-month
period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to
Fascinate Textiles Limited, our Company. Unless otherwise indicated, financial information included
herein are based on our "Restated Financial Statements" for Fiscal Year.

Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook,
estimates, expectations or prediction may be "Forward Looking Statements " 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 our operations include, among others,
economic conditions affecting demand/supply and price conditions in domestic and overseas market in
which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental
factors.

Business Overview

Our Company was originally incorporated on February 09, 2017 as a Private Limited Company in the
name and style of "Fascinate Textiles Private Limited" under the provisions ofthe Companies Act, 2013
vide Certificate of Incorporation bearing CIN: U17299WB2017PTC219383 issued by the Registrar of
Companies, Kolkata. Further, our Company was converted into a Public Limited Company pursuant to
Special Resolution passed by the shareholders of our Company at the Extra- Ordinary General Meeting
held on 25th April, 2025, and consequently the name of our Company was changed from "Fascinate
Textiles Private Limited" to "Fascinate Textiles Limited" and a fresh certificate of incorporation dated
May 20, 2025 pursuant to conversion from Private Limited Company to Public Limited Company was
issued by the Registrar of Companies, Central Registration Centre bearing CIN:
U17299WB2017PLC219383.

We are engaged in the manufacturing of readymade garments, with operations based in West Bengal.
Our product range spans menswear, womenswear, and childrenswear, with a significant portion of our

output focused on garments for children. Our offerings include t-shirts, joggers, vests, leggings, shorts,
and infant wear, among others, catering to a variety of end-use segments and age groups.

We are an ISO 9001:2015 certified company. This certification reflects the presence of defined quality
management systems and standardised operational procedures across our processes. It reinforces our
ability to meet buyer specifications consistently, supports compliance with international trade norms,
and contributes to the facilitation of cross-border operations, including import and export.

We develop samples both in response to themes and mood boards provided by buyers, as well as through
our own in-house design initiatives. Once a sample receives approval, we undertake production at our
manufacturing facility. Our garments are supplied to large-format retailers and wholesalers in the local
market.

Our manufacturing activities are primarily concentrated in Barasat, North 24 Parganas, West Bengal,
where we own and operate our production facility. Most operations following fabric processing
including cutting, printing, stitching, and finishing are conducted in-house. We manage design
development, sample creation, and production schedules internally through a team of merchandisers,
each assigned to specific buyers to ensure continuity and coordination.

We procure yarn, which is then sent for knitting and dyeing through external job workers. Once the
processed fabric is received, all subsequent manufacturing operations are carried out within our facility.
A significant portion of our production infrastructure is automated, including the use of automatic
printing and sequencing machines. This integration of technology enables us to maintain consistency,
enhance efficiency, and uphold quality across our product offerings.

BUSINESS SEGMENTS

Our revenue is primarily derived from the sale of garments and fabrics. The table below provides a
breakdown of revenue and its percentage contribution by business segment for the fiscal years ended
March 31, 2023, 2024, and 2025.

Revenue from Various Business Segment (Amt. in Rs. Lakhs)
SL Business NO. Segment	Fiscal 2025	% of Total Revenue	Fiscal 2024	% of Total Revenue	Fiscal 2023	% of Total Revenue
1 Kids Garments	2,156.57	35.80	1,847.09	63.96	780.51	35.72
2 Infant Garments	1,120.54	18.60	69.52	2.41	244.56	11.19
3 Womens Garment	403.76	6.70	454.98	15.75	491.10	22.47
4 Mens Garment	690.90	11.47	-	-	-	-
5 Yarn	583.30	9.68	-	-	-	-
6 Knitted Fabric	700.15	11.62	516.43	17.88	669.08	30.62
7 Woven Fabric	369.50	6.13	-	-	0.10	0.00
Total	6,024.73	100.00	2,888.02	100.00	2,185.35	100.00

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of Statement of Significant Accounting Policies, please refer to Significant
Accounting Policies and Notes to accounts, "Note 02 beginning under Chapter titled "Restated
Financial Statements" beginning on page 255 of this Draft Red Herring Prospectus.

Principle Components of our Restated Statement of Assets & Liabilities
FY 2025 Compared with FY 2024:

(Amount in Rs Lakhs)

Particulars	For the period ended March 31,		Increase/ (Decrease)
	2025	2024	Amount	%
Liabilities
Long Term Borrowings	528.39	381.67	146.72	38.44%
Short Term Borrowings	1,292.52	851.75	440.77	51.75%
Trade Payables	1,016.08	754.29	261.79	34.71%
Assets
Long term loans and advances	5.00	0	5.00	100%
Inventories	1,546.60	1,270.32	276.28	21.75%
Trade Receivables	1,733.03	533.79	1,199.24	224.67%
Short term loans and advances	301.27	129.46	171.81	132.71%

Reasons for change:

Long-Term Borrowings: Long-term borrowings increased by Rs. 146.72 lakhs, which represents a rise
of 38.44%, from Rs. 381.67 lakhs in FY 2024 to Rs. 528.39 lakhs in FY 2025. The primary reason for
this increase was availing new term loan of Rs. 275.88 lakhs from IndusInd Bank Ltd, reduced by Rs.
75.14 lakhs classified as current maturities of long-term borrowings under short term borrowings.

Short Term Borrowings: Short-term borrowings increased by Rs. 440.77 lakhs, representing a 51.75%
increase from Rs. 851.75 lakhs in FY2024 to Rs. 1,292.52 lakhs in FY 2025. Primarily the increase is
driven by new working capital loan taken by the company which has a net impact of Rs. 378.67 lakhs
and Rs. 75.14 lakhs due to increase in reclassification of the current maturities of long-term borrowings
under short-term borrowings.

Trade Payables: The trade payables of our company increased from Rs. 754.29 lakhs in FY2024 to Rs.
1,016.08 lakhs in FY2025 which represents an increase of 34.71%. The increase in absolute numbers is
mainly due to growth in revenue of our company. However, in terms of days it decreased from 90 days
in FY2024 to 84 days in FY2025.

Inventories: The inventory increased by Rs.276.28 lakhs, rising from Rs. 1,270.32 lakhs in FY 2024
to Rs. 1,546.60 lakhs in FY 2025. This increase is primarily attributable to a rise in WIP by Rs. 236.98
lakhs, and finished goods by Rs. 60.37 lakhs while reporting a decrease in raw material stock by Rs.
21.06 lakhs. Our company recorded inventory holding days at 107 days in FY2024 and 84 days in
FY2025.

Long term loans and advances: During the FY2025 we have made a capital advance of Rs. 5.00 lakhs
for signing MOU with land owners. This land is proposed to be used for setting up new manufacturing
facility.

Trade Receivables: Trade receivables increased by Rs. 1,199.24 lakhs which represents an increase of
224.67%, from Rs. 533.79 lakhs in FY 2024 to Rs. 1,733.03 lakhs in FY 2025. The increase is primarily
attributable to the increase in sales to meet elevated demand. In terms of days trade receivables
decreased from 74 days in FY2024 to 69 days in FY2025.

Short term loans and advances: Our Short-term loans and advances increased by Rs. 171.81 lakhs
which represents 132.71% increase from Rs. 129.46 lakhs in FY2024 to Rs. 301.27 lakhs in FY2025.
The increase is mainly due to increase in advance paid to suppliers in line with the increase in purchases
to meet the production demand.

FY 2024 Compared with FY 2023:

Particulars	For the period ended March 31,		Increase/ (Decrease)
	2024	2023	Amount	%
Liabilities
Long Term Borrowings	381.67	164.95	216.72	131.39%
Short Term Borrowings	851.75	477.94	373.81	78.21%
Trade Payables	754.29	603.63	150.66	24.96%
Assets
Inventories	1,270.32	441.49	828.83	187.73%
Trade Receivables	533.79	641.78	-107.99	-16.83%
Short term loans and advances	129.46	113.46	16	14.10%

Reasons for change:

Long-Term Borrowings: Long-term borrowings increased by Rs. 216.72 lakhs, which represents a rise
of 131.39%, from Rs. 164.95 lakhs in FY 2023 to Rs. 381.67 lakhs in FY 2024. The primary reason for
this increase was, new term loans of Rs. 73.30 lakhs taken from banks and financial institutions and Rs.
161.90 lakhs from others, reduced by Rs. 18.47 lakhs classified as current maturities of long-term
borrowings.

Short Term Borrowings: Short-term borrowings increased by Rs. 373.81 lakhs, representing a 78.21%
increase from Rs. 477.94 lakhs in FY2023 to Rs. 851.75 lakhs in FY 2024. Primarily the increase is
driven by increase in working capital loan by Rs. 331.86 lakhs and Rs. 41.95 lakhs due to increase in
reclassification of the current maturities of long-term borrowings under short-term borrowings.

Trade Payables: The trade payables of our company increased from Rs. 603.63 lakhs in FY2023 to Rs.
754.29 lakhs in FY2025 which represents an increase of 24.96%. The increase in absolute numbers is
mainly due to growth in revenue of our company. However, in terms of days it decreased from 102 days
in FY2023 to 90 days in FY2024 which reflects the companys strategy of early settlement of creditors
to avail early payment discount which is a general practice in the industry.

Inventories: The inventory increased by Rs. 828.83 lakhs, rising from Rs. 441.49 lakhs in FY 2023 to
Rs. 1,270.32 lakhs in FY 2024. This increase is primarily attributable to a rise in WIP by Rs. 262.92
lakhs, raw material by Rs. 371.53 lakhs and finished goods by Rs. 194.38 lakhs. The increase is due to
anticipated revenue growth for FY 2025 to meet the increased demand of production and supply. Our
company recorded inventory holding days at 124 days in FY2023 and 107 days in FY2024.

Trade Receivables: Trade receivables decreased by Rs. 107.99 lakhs which represents 16.83%, from
Rs. 641.78 lakhs in FY2023 to Rs. 533.79 lakhs in FY 2024. The decrease is primarily due to improved
collection by implementing early payment discount to customers. In terms of days trade receivables
decreased from 88 days in FY2023 to 74 days in FY2024.

Short term loans and advances: Our Short-term loans and advances increased slightly by Rs. 16 lakhs
which represents 14.10% increase from Rs. 113.46 lakhs in FY2023 to Rs. 129.46 lakhs in FY2024.
The increase is mainly due to increase in advance paid to suppliers.

KEY PERFORMANCE INDICATORS ("KPIs")

Our Company confirms that it shall continue to disclose all the KPIs included in this section on a
periodic basis, at least once in a year (or any lesser period as determined by the Board of our Company),
for a duration of one year after the date of listing of the Equity Shares on the Stock Exchange or till the
complete utilization of the proceeds of the Fresh Offer as per the disclosure made in the "Objects of
the Offer" Section beginning on Page no. 122 whichever is later or for such other duration as may be
required under the SEBI ICDR Regulations.

The KPIs disclosed below have been approved by a resolution of our Audit Committee dated September
15, 2025 and the members of the Audit Committee have verified the details of all KPIs pertaining to the
Company. Further, the members of the Audit Committee have confirmed that there are no KPIs
pertaining to our Company that have been disclosed to any investors at any point of time during the
three years period prior to the date of filing of this Draft Red Herring Prospectus. Further, the KPIs
herein have been certified by M/s Jain Sonu & Associates, Chartered Accountants, by their certificate
dated September 18, 2025, who hold a valid certificate issued by the Peer Review Board of the ICAI.
The Statutory Auditors certificate dated September 18, 2025 has been included in the section ‘Material
Contracts and Documents for Inspection beginning on Page no. 431 of this Draft Red Herring
Prospectus.

The KPIs disclosed below have been used historically by our Company to understand and analyze the
operational and the financial performance, which in result, helps it in analyzing the growth of various
verticals in comparison to its listed peers, and other relevant and material KPIs of the business of our
Company that have a bearing on arriving at the Basis for Offer Price have been disclosed below.

The Applicants can refer to the below-mentioned Key Performance Indicators, being a combination of
financial and operational Key Performance Indicators, to make an assessment of our Companys
performances and make an informed decision.

Financial KPI of our Company-

( In Lakhs except Percentages)

Sr. No. Metrix	As of and for the Fiscal
	2025	2024	2023
1 Revenue From Operation (? in Lakhs)	6024.73	2888.02	2185.35
2 Total Income (? in Lakhs)	6,027.68	2,889.59	2,186.20
3 Growth (%) in Total Income	108.32%	32.35%
4 Operating EBITDA (? in Lakhs)	998.18	163.06	91.72
5 Year on Year growth in Operating EBITDA (%)	512.15%	77.79%
6 Operating EBITDA Margin (%)	16.57%	5.65%	4.20%
7 Profit/(loss) after tax for the year (? in Lakhs)	581.11	47.78	35.68
8 Growth (%) in PAT	1116.17%	33.91%
9 Net profit Ratio / PAT Margin (%)	9.65%	1.65%	1.63%
10 Return on Assets (ROA) (%)	102.10%	10.65%	16.77%
11 Return on Equity (ROE) (%)	78.00%	13.31%	14.00%
12 Debt To Equity Ratio	1.74	2.77	2.36
13 ROCE (%)	42.41%	11.66%	13.29%
14 Current Ratio	1.38	1.14	1.08
15 Net Capital Turnover Ratio	9.64	17.49	8.63
16 P/E Ratio	[*]	[*]	[*]
17 EPS	41.32	3.40	2.97
18 Networth	1,044.54	445.43	272.76

Notes:

a) As certified by M/s Jain Sonu & Associates., Chartered Accountants pursuant to their certificate
dated September 18, 2025, the Audit committee in its resolution dated September 15, 2025 has
confirmed that the Company has not disclosed any KPIs to any investors at any point of time during
the three years preceding the date of thisDraft Red Herring Prospectus other than as disclosed in
this section.

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

q) Operating EBITDA refers to earnings before interest, taxes, depreciation, amortisation, gain or
loss from discontinued operations and exceptional items. Operating EBITDA excludes other
income.

r) Operating EBITDA Margin refers to operating EBITDA during a given period as a percentage of
revenue from operations during that period.

s) Net Profit Ratio/Margin quantifies our efficiency in generating profits from our revenue and is
calculated by dividing our net profit after taxes by our revenue from operations.

t) Return on assets (ROA) is equal to profit for the year divided by the total average tangible assets
at the end of that period and is expressed as a percentage.

u) Return on equity (ROE) is equal to profit for the year divided by the total average equity during
that period and is expressed as a percentage.

v) Debt to equity ratio is calculated by dividing the Total debt (i.e., Total borrowings) by total equity
(Shareholders Fund).

w) RoCE (Return on Capital Employed) (%) is calculated as Earnings Before Interest and Tax divided
bytotal average equity plus non-current liabilities (i.e. Tangible Net worth + Total Debt+ Deferred
Tax Liabilities).

x) Current Ratio is a liquidity ratio that measures our ability to pay short-term obligations (those
which are due within one year) and is calculated by dividing the current assets by current liabilities.

y) Net Capital Turnover Ratio quantifies our effectiveness in utilizing our working capital and is
calculated by dividing our revenue from operations by our Average working capital (i.e., current
assets less current liabilities)

z) P/E ratio is a useful tool for evaluating stock prices, it should be considered alongside other
financial metrics and qualitative factors for a comprehensive analysis P/E is calculated by dividing
the current share price of the stock by the companys earnings per share (EPS).

aa) Investors and analysts often look at EPS in conjunction with other metrics, like the Price-to-
Earnings (P/E) ratio, to get a fuller picture of a companys financial health and valuation. Its
calculated by dividing a companys net income (after taxes and preferred dividends) by the number
of outstanding shares of its common stock

bb) EPS is calculated as PAT of relevant year divided by Average number of Equity Share
cc) Net worth is a snapshot of financial stability at a given point in time and is useful for assessing
financial progress and making informed financial decisions. The formula is Net worth = Total
Assets - Total Liabilities

Set forth the description of historic use of the KPIs by our Company to analyse, track or monitor
the operational and/or financial performance of our Company.

For evaluation our business, we consider that the KPIs, as presented above, as additional measures to
review and assess our financial and operating performance. These KPIs have limitations as analytical
tools and presentation of these KPIs should not be considered in isolation or as a substitute for the
Restated Financial Information. Further, these KPIs may differ from the similar information used by
other companies, including peer companies, and hence their comparability may be limited. Although
these KPIs are not a measure of performance calculated in accordance with applicable accounting
standards, our Companys management believes that it provides an additional tool for investors to use

our operating results and trends and in comparing our financial results with other companies in our
industry as it provides consistency and comparability with past financial performance.

KPI	Explanations
Revenue from Operations (? in Lakhs)	Revenue from Operations is used by our management to track the revenue profile of thebusiness and in turn helps assess the overall financial performance of our Company and Size of our business.
Total Income (? in Lakhs)	Total Income is used to track the total revenue generated by the business including other income.
Operating EBITDA (? in Lakhs)	Operating EBITDA provides information regarding the operational efficiency of thebusiness.
Operating EBITDA Margin (%)	Operating EBITDA Margin is an indicator of the operational profitability and financialperformance of our business.
Profit After Tax for the year (? in Lakhs)	Profit after tax provides information regardingthe overall profitability of the business.
Net Profit Ratio/PAT Margin (%)	PAT Margin is an indicator of the overallprofitability and financial performance of our business.
Return on Equity (ROE) (%)	ROE provides how efficiently our Companygenerates profits from shareholders funds.
Debt To Equity Ratio	Debt-to-equity (D/E) ratio is used to evaluatea companys financial leverage.
Return on Capital Employed (%)	ROCE provides how efficiently our Company generates earnings from the capital employed in the business.
Current Ratio	It shows management how business can maximize the current assets on its balancesheet to satisfy its current debt and other payables.
Net Capital Turnover Ratio	This metric enables us to track the how effectively company is utilizing its working capital to generate revenue.
Price Earning Ratio	The Price-to-Earnings (P/E) Ratio is a financial metric used to evaluate the valuation of a companys stock. Its calculated by dividing the current share price by the companys earnings per share (EPS).
Earning Per Share	Earnings Per Share (EPS) is a financial metric used to gauge a companys profitability on a per-share basis. It tells investors how much profit a company has earned for each share of its common stock.
Net Worth	Net worth is a measure of an individuals or organizations financial health, calculated by subtracting total liabilities from total assets.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO LAST AUDITED BALANCE SHEET

1. On April 1, 2025, following the renunciation of rights by existing shareholders, 14,000 equity
shares of ?10 each at a premium of ?878 per share were allotted to Karnika Industries
Limited.

2. On April 09, 2025, following the renunciation of rights by existing shareholders, 42,000 equity
shares of ?10 each at a premium of ?939 per share were allotted to following subscribers:

Sl No. Name of Subscriber	Number of Equity Shares Subscribed
1 Somnath Modi	14000
2 Neha Modi	14000
3 Asish Purekha	14000
Total	42000

3. On April 1, 2025, following the renunciation of rights by existing shareholders, 7,889 equity
shares of ?10 each at a premium of ?840 per share were allotted to following allotees.

Sl No. Name of Subscriber	Number of Equity Shares Subscribed
1 Abdur Rahaman	830
2 Amish Shah	1411
3 Amish Shah (HUF)	1218
4 Chitra Chandak	1790
5 Diwakar Gaggar	840
6 Samir Patra	1800
Total	7889

4. Bonus issue of 8831394 Equity Shares of face value of Rs10/- each fully paid up on August 12,
2025 in the ratio of 6:1 i.e., 6 Bonus Equity Shares for every 1 Equity Share held by the existing
equity shareholders as on record date i.e., August 12, 2025, the details of which are given
below:

Sl No. Name of Subscriber	Number of Equity Shares Subscribed
1 Vishal Nahar	4709076
2 Chirag Ahuja	1169190
3 Rishabh Nahar	799992
4 Vishal Nahar (Huf)	555000
5 Narinder Kumar Ahuja	1169202
6 Pradeep Kumar Agrawal	33600
7 Encore Events Private Limited	12000
8 Karnika Industries Limited	84000
9 Somnath Modi	84000
10 Neha Modi	84000
11 Ashish Purekha	84000
12 Abdur Rahaman	4980
13 Amish Shah	8466
14 Amish Shah Huf	7308
15 Chitra Chandak	10740
16 Diwakar Gaggar	5040
17 Samir Patra	10800
Total	8831394

Factors affecting our Business:

Our business is subjected to various risks and uncertainties, including those discussed in the section
titled "Risk Factors" beginning on 43 of this Draft Red Herring Prospectus. Our results of operations
and financial conditions are affected by numerous factors including the following:

• General economic and business conditions in the markets in which we operate and in the local &
regional economies;

• Changes in Industry Requirements;

• New Innovation of our product portfolio, from time to time;

• Changes in government policies resulting high taxes payable by us;

• Changes in laws and regulations that apply to the industries in which we operate;

• Impact of Russia-Ukraine War and Israel - Hamas War on our business and operations;

• General economic, political, and other risks that are out of our control;

• Inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;

• Companys ability to successfully implement its growth strategy and expansion plans;

• Occurrence of Environmental Problems & Uninsured Losses;

• The performance of the financial markets in India and globally.

• Performance of Companys competitors.

• Our ability to maintain tie-ups or collaboration agreement with our partners;

• Our dependence on limited number of customers/suppliers/brands for a significant portion of our
revenues

• Rapid Technological advancement and inability to keep pace with the change

• Our ability to retain and hire key employees or maintain good relations with our workforce

• Occurrence of natural or man-made disasters could adversely affect our results of operations and
financial condition

• Failure to obtain any applicable approvals, licenses, registrations and permits in a timely manner
Discussion on Result of Operations

The following discussion on results of operations should be read in conjunction with the Restated
Financial Statements for the financial year ended on 31st March, 2025, 31st March, 2024 and 31st
March, 2023.

Particulars	31st March	% of Total	31st March	% of Total	31st March	% of Total
	2025	Income	2024	Income	2023	Income
A INCOME	(Rs. in lakhs)		(Rs. in lakhs)		(Rs. in lakhs)
I Revenue from Operation	6,024.73	99.95%	2,888.02	99.95%	2,185.35	99.96%
II Other Income	2.95	0.05%	1.57	0.05%	0,84	0.04%
III TOTAL INCOME (I+II)	6,027.68	100.00%	2,889.59	100.00%	2,186.20	100.00%
B EXPENSES
Cost of Raw Materials consumed	3,885.73	64.46%	2,380.33	82.38%	1,905.26	87.15%
Change in Inventories of Finished Goods Work-In- Progress & Stock-In-Trade	(297.35)	-4.93%	(457.29)	-15.83%	(288.31)	-13.19%
Employee Benefits Expense	310.62	5.15%	171.10	5.92%	129.64	5.93%
Finance Costs	162.88	2.70%	93.84	3.25%	52.28	2.39%
Depreciation and Amortization Expense	51.61	0.86%	29.98	1.04%	8.03	0.37%
Other Expenses	1,105.86	18.35%	608.09	21.04%	331.90	15.18%
IV TOTAL EXPENSES	5,219.35	86.59%	2,826.05	97.80%	2,138.79	97.83%
PROFIT BEFORE EXCEPTIONAL AND
V EXTRAORDINARY ITEMS AND TAX (III-IV)	808.32	13.41%	63.54	2.20%	47.40	2.17%
VI EXCEPTIONAL ITEMS	-		-		-
vn PROFIT BEFORE EXTRAORDINARY ITEMS AND TAX (V-VI)	808.32	13.41%	63.54	2.20%	47.40	2.17%
VIII EXTRAORDINARY ITEMS	-		-		-
IX PROFIT BEFORE TAX (VII-VIII)	808.32	13.41%	63.54	2.20%	47.40	2.17%
X TAX EXPENSES :
(1) Provision for Income Tax
- Current Tax	221.84	3.68%	16.52	0.57%	11.72	0.54%
(2) Deferred Tax
- Deferred Tax Liability created /(reversed)	5.38	0.09%	(0.75)	-0.03%	-	0.00%
TOTAL OF TAX EXPENSES	227.22	3.77%	15.76	0.55%	11.72	0.54%
PROFIT/{LOSS) FOR THE YEAR {IX-X )	581.11	9.64%	47.78	1.65%	35.68	1.63%
XI Earning per equity share {Nominal value of share Rs. 10 )
- Basic	41.32		3.40		2.97
- Diluted	41.32		3.40		2.97

Revenue from Operations:

Our company is engaged in the manufacturing of readymade garments, with operations based in West
Bengal. Our product range spans mens wear, womens wear, and childrens wear, with a significant
portion of our output focused on garments for children. Our offerings include t-shirts, joggers, vests,
leggings, shorts, and infant wear, among others, catering to a variety of end-use segments and age
groups.

Other Income:

Our other income primarily consists of interest income and discount received and balance write off.
Expenses:

Companys expenses consist of Cost of Raw Materials Consumed, Change in Inventories of Finished
Goods & Stock in Trade, Employee Benefits Expense, Finance Cost, Depreciation and Amortization
Expense and Other Expenses.

Cost of Raw Materials Consumed:

Cost of Raw Materials Consumed comprises of ready to use Fabrics, Cotton yam, Dyes and Chemicals
and other auxiliary materials such as Lubricants, detergents, binders etc.

Changes in inventories of WIP & finished goods:

Changes in Inventories of finished goods & stock in trade i.e. difference between opening stock and
closing stock of Stock-In-Trade & Finished Goods.

Employee benefits expense:

Our Employee Benefits Expense primarily comprises of Salaries, Wages and Bonus, Staff welfare
expenses, Remuneration to directors, Contribution to Provident and Other Funds.

Finance Costs:

Our finance cost includes Interest expenses on borrowings like Interest on Term Loan, Interest on
Overdraft facility, Interest on Working Capital Loan and Loan Processing Charges.

Depreciation and Amortization Expenses

Depreciation includes depreciation on Building, Plant & Machinery, Electrical Equipment, Furniture &
Fittings, Computer & Peripherals and Office Equipment.

Other Expenses: - Other expenses include dying charges , knitting expenses, washing expenses,
printing expenses, finishing expenses, electricity expenses, transportation, discount allowed and other
expenses pertaining to office, factory and administration.

Summary of major items of Income and Expenditure:

Revenue From Operations: We are engaged in the manufacturing of readymade garments, with
operations based in West Bengal. Our product range spans menswear, womenswear, and childrenswear,
with a significant portion of our output focused on garments for children. Our revenue from operation
during the Financial Year ending 2024-25, Financial Year ending 2023-24 and Financial Year ending
2022-23 are 99.95%, 99.81% and 99.96% of total income respectively. In terms actual numbers revenue
from operations are Rs. 6,024.73 lakhs in FY2025, Rs. 2,888.02 lakhs in FY2024 and Rs. 2,185.35
lakhs in FY2023.

Other Income: - The other income majorly includes interest, discount received and balance written off.
Other income of Rs. 2.95 lakhs, Rs. 1.57 lakhs and Rs. 0.84 lakhs reported for the FY2025, FY2024
and FY2023 respectively.

Total Expenses: - Our total expenses encompass the following - (i) Cost of Raw Materials Consumed,
(ii) Purchase of Stock-in-Trade, (iii) Change in Inventories of Finished Goods & Stock-In-Trade, (iv)
Employee benefits expense, (iv) Finance Costs, (v) Depreciation and Amortization Expenses and (vi)
Other Expenses.

Cost of Raw material consumed: - The cost of raw material consumed includes Opening Stock,
Purchase of Raw Material and Closing Stock amounting to Rs 3,885.73 lakhs, Rs. 2,380.33 lakhs and
Rs. 1,905.26 for FY2025, FY2024 and FY2023 respectively. In terms of proportion to total income it
represents 64.46%, 82.27% and 87.15% in FY2025, FY2024 and FY2023 respectively.

Changes in Inventories of WIP & Finished Goods: - The changes in Inventories of WIP & Finished
Goods reported an increase in closing value by Rs. 297.35 lakhs in FY2025, Rs. 457.29 lakhs in FY2024
and Rs. 288.31 lakhs in FY2023. In proportion to total income, it represents 4.93%, 15.80% and 13.19%
in FY2025, FY2024 and FY2023 respectively.

Employee Benefit Expenses: - The employee benefit expenses include Salaries, wages and bonus,
Staff welfare expenses Salary to Directors, Contribution to provident and Staff incentives expenses
amounting to Rs 310.62 lakhs, Rs. 171.10 lakhs and Rs. 129.64 for FY2025, FY2024 and FY2023
respectively. In terms of proportion to total income it represents 5.15%, 5.91% and 5.93% in FY2025,
FY2024 and FY2023 respectively.

Finance Costs: - The Finance costs include Interest on term loans, cash credit, unsecured loans, loan
processing charges and bank charges which comes to Rs 162.88 lakhs, Rs. 93.84 lakhs and Rs. 52.28
lakhs for FY2025, FY2024 and FY2023 respectively. In terms of proportion to total income it represents
2.70%, 3.24% and 2.39% in FY2025, FY2024 and FY2023 respectively.

Depreciation and Amortization Expenses: - Our company reported depreciation and amortization at
Rs. 51.61 lakhs in FY25, Rs. 29.98 lakhs in FY24 and Rs. 8.03 lakhs in FY23.

Other expenses: - Other expenses of our company is Rs. 1,105.86 lakhs, Rs. 611.96 lakhs and Rs.
331.90 lakhs for FY2025, FY2024 and FY2023 respectively. In proportion to total income other
expenses stood at 18.35% in FY25, 21.15% in FY24 and 15.18% in FY23.

Details of Financial Year 2024-25 compared to Financial Year 2023-24 (Based on Restated
Financial Statements)

Total Income: -Total Income for the Financial Year 2024-25 stood at Rs 6,027.68 Lakhs whereas the
same stood at Rs 2,888.02 Lakhs in Financial year 2023-24, representing an increase of 108.32%. The
total income includes other income of Rs. 2.95 lakhs in FY25 compared to Rs. 1.57 lakhs in FY2023-
24.

Revenue from Operations: - Revenue from Operation for Financial Year 2024-25 stood at Rs 6,024.73
Lakhs as against Rs 2,888.02 Lakhs in financial year 2023-24 representing an increase of 108.61%. The
increase in revenue is mainly driven by the boost in sales of our products to wholesale buyers and local
customers and introduction of mens wear segments. We started targeting local market in the mid of
FY2024 and the venture continued for full year in FY2025. The strategy helped us to grow our sales
which is visible in our revenue from operations of Rs. 6,024.73 lakhs in FY2025.

Reasons for increase in revenue:

Introduction of new segments: Our company introduced below segments in our finished products
which fetched an additional revenue of Rs. 1,643.70 lakhs in FY2025 which is 27% approx. of total
revenue.

Particulars	Amount Rs. in Lakhs
Mens garment	690.90
Woven fabric	369.50
Yarn	583.30
Total	1,643.70

Shifting to automated manufacturing facility: Our company moved to new automated manufacturing
facility in mid of FY2023-24 which we utilized for full financial year during FY2025. This helped us
in increasing our capacity and efficiency and ultimately in faster production and meeting increased
demand.

Merger synergy: We took over existing enterprises in the similar line of business which contributed
Rs. 273.00 lakhs in Q4 of FY2024 and Rs. 1,100.00 lakhs in full year FY2025.

These factors helped us to achieve revenue from operation of Rs. 6,024.73 lakhs in FY2025

Other Income: -Other income for financial year 2025 was Rs 2.95 Lakhs compared to Rs. 1.57 Lakhs
in financial Year 2024 representing an increase of 87.84%. Increase in other income is primarily due to
increase in interest income of our company in FY2025.

Total Expenses: - Total Expense for Financial Year 2024-25 stood at Rs. 5,219.35 Lakhs whereas the
same stood at Rs. 2,829.91 Lakhs in Financial Year 2023-24, representing an increase of 84.44%. It is
analyzed that total expenses in proportion to total revenue constitute 86.59% in financial year 2024-25
in comparison to 97.80% in financial year 2023-24. This change indicates a certain level of efficiency
in managing expenses proportion to the increased income, as the company has been able to maintain a
lower expense-to-income ratio, despite the growth in both income and expenses.

Cost of Materials Consumed: - Cost of Material Consumed for Financial Year 2024-25 stood at Rs
3,885.73 Lakhs as compared to Rs. 2,380.33 Lakhs in Financial year 2023-24, representing an increase
of 63.24%. In proportion to total income, it represents 64.46% in the Financial Year 2024-25 and
82.27% in FY2023-24. The primary reason for increase in cost of material consumed is increased
revenue and production. Further, in proportion to total income it decreased from 82.27% to 64.46%.

Though in proportion to total income cost of material consumed is representing a drop from 82.27% in
FY2024 to 64.46% in FY2025, it includes the production cost of finished products in stock as well. The
combined effect of cost of material consumed and change in inventory of finished stock, in proportion
to total income it is 66.59% in FY2024 and 59.56% in FY2025. Thus, the overall decrease in cost of
raw material consumed 7% approx..

Changes in Inventories of Finished Goods and WIP: - Changes in Inventory of finished goods and
WIP for Financial Year 2024-25 reflects an increase in closing stock by Rs 297.35 Lakhs whereas the
increase in closing stock was reported at Rs 457.29 Lakhs in Financial Year 2023-24. In proportion to
total income, it represents 4.93% in Financial Year 2024-25 and 15.80% in FY2023-24.

Employee benefits expense: - Employee Benefit Expense for Financial Year 2024-25 stood at Rs
310.62 Lakhs as compared to Rs. 171.10 lakhs in FY2023 -24. In proportion to total Income, it represents
5.15% in FY2025 whereas in FY2024 it was 5.91%. Our company has managed to maintain the
employee benefits expense at the similar level compared to previous year.

Finance Cost: - The Finance Cost for FY 2025 stood at Rs 162.88 Lakhs with an increase of 73.57%
compared to the preceding F.Y. 2024, which stood at Rs. 93.84 Lakhs in FY2024. The rise is due to
increase in unsecured borrowings from financial institutions during the year. In proportion to total
income, it is 2.70% in FY2025 compared to 3.24% in FY2024. Though the finance cost of our company
increased in absolute terms we have managed to keep it lower in proportion to total income in FY2025.

Depreciation and Amortization Expenses: - Our company recorded Depreciation & Amortization
expenses of Rs. 51.61 Lakhs in FY2025 compared to Rs 29.98 Lakhs in FY2024, representing an
increase of 72.14% % over previous year. The major reason for increase in depreciation is addition in
block of fixed assets of Rs. 342.52 lakhs in FY2025. It is analysed and observed that in FY2025
depreciation and amortization represent 0.86% of total income compared to 1.04% in FY024.

Other Expenses: - Other Expense for FY2025 stood at Rs 1,105.86 Lakhs compared to Rs. 611.96
Lakhs in FY2024 a jump of 80.71% recorded over FY2024. This significant increase is attributed to
increase in Finishing charges by Rs 188.29 Lakhs, Stitching charges by Rs. 63.72 lakhs, Dying charges
by Rs. 68.55 lakhs, Embroidery Charges by Rs. 23.38, Printing Charges by Rs. 18.54 lakhs and increase
in administrative expense by Rs. 86.82 lakhs over previous financial year. In proportion to total income
other expenses represents 18.35% in FY2025 compared to 21.15% in FY2024. This reflects that in
proportion to total income our company has savings in other expense by 3% approx.

Restated Profit before Exceptional Items, Extraordinary Item & Tax: - Restated Profit before
Exceptional Items, Extraordinary Item & Tax reported Rs 808.32 Lakhs in FY2025 compared to Rs
63.54 Lakhs in FY2024. This increase is mainly due to significant improvement in the companys
financial performance during the FY2025. In proportion to total income, it represents 13.41% in
FY2025 compared to 2.20% in FY2024.

Profit after Tax: - For the FY2025, we reported a Profit After Tax (PAT) of Rs. 581.11 lakhs, marking
an impressive increase compared to Rs. 47.78 lakhs in FY 2024. The PAT margin also saw a significant
improvement, with PAT contributing 9.64% of total income in FY 2025, compared to 1.65% in FY 2024.
The total expenses to total income ratio improved to 86.59% in FY 2025 from 97.80% in FY 2024,
underscoring better cost control and resource optimization along with increase in selling price in local
market sales.

Primary reasons for increase in PAT margin are as below:

1. Rise in sale price: As the demand of our product rose in FY2025 we strategically increased our sale
price with no increase in cost of material consumed which resulted into increase in total income and
decrease in proportion of cost of material consumed. Sale price increase attributed to Kids garment
price increased by 11%, Women Garment by 2.5% and Knitted fabric by 2.91%.

2. Additional segment introduction: We have introduced three segments namely menswear, processed
knitted fabric and yarn in FY2025 which contributed Rs. 1643.70 lakhs in revenue which represents
27% approx. of total revenue in FY2025 with incremental margin. This additional revenue ultimately
resulted in improved PAT margin.

3. Local market sales: Our company targeting local market with higher sale price ultimately resulting
into higher margin with constant cost. Since the sale price of the products increased with the flat cost
of raw material as a result in proportion to total income cost of material consumed decreased. Currently
we have a sales mix of 17% from local market and 83% from corporate brands with a contribution
margin of more than 100% in local market and 25%-30% in corporate brands.

The higher margin in local sales is due to use lower intensity fabric which reduces the cost of raw
material.

4. Raw material mix: We improved our raw material mix by blending polyester up to 8.5% to optimize
the cost, which resulted into a drop in average cost of material from Rs. 347.66 per kg to Rs. 321.32 per
kg. representing a drop of 8.20%.

5. Wastage control: By introduction of automated machines, we reduced the manual processing and
cutting of fabrics and to some extent eliminated the wastage from manual cutting. This contributed into
savings in cost of material by 2% in purchase volume.

6. Synergy from merger of entity: We took over 2 enterprises towards end of the FY2024 namely S R
Creations and Raiment Lifestyle. The benefit of merger for full year was available in FY2025 and
contributed an incremental PAT of Rs. 116.20 lakhs representing 14.20% of total PAT.

7. Benefit from moving to new automated facility: In the mid of the FY2024 we relocated to our new
manufacturing facility with automated equipment which boosted our capacity and efficiency. This
shifting to new facility helped us achieving revenue of Rs. 6024.70 lakhs in FY2025 by utilizing 2
automatic printing machines, 1 cutting spreader, and AutoCAD machine. The efficiency of printing
doubled by reducing cutting and stitching time. This saved us proportionate labor cost and reduced
wastage.

The above-mentioned factors combined together end up in increase in PAT margin from 1.65% % in
FY2024 to 9.64% in FY2025.

Details of Financial Year 2023-24 compared to Financial Year 2022-23 (Based on Restated
Financial Statements)

Total Income: -Total Income for the FY2024 stood at Rs 2,889.59 lakhs compared to Rs. 2,186.20
lakhs in FY 2023. The total income includes revenue from operations and other income, it has operating
revenue of 99.81% in FY2024 and 99.96% in FY2023 and other income of 0.19% in FY2024 and 0.04%
in FY2023.

Revenue from Operations: -Revenue from Operations for FY 2024 reported at Rs. 2,888.02 lakhs
compared to Rs 2,185.35 lakhs in FY2023. This increase of 32.15% is primarily attributed to growth in
revenue from new customers and merger of entity during the financial year.

Other Income: - Other income of our company increased from Rs. 0.84 lakhs in FY2023 to Rs. 1.57
lakhs in FY2024. Reason for increase is attributed to interest on security received Rs. 1.16 lakhs in
FY2024.

Total Expenses: The Total Expense for FY2024 stood at Rs. 2,829.91 lakhs compared to Rs. 2,186.20
lakhs in FY2023. In proportion to revenue, it represents 97.80% in FY2024 compared to 97.83% in
FY2023. We managed to maintain our total expense to total income at the same level in FY2024 as
compared to FY2023. Increase in absolute numbers are in line with the increase in revenue and
production.

Cost of Materials Consumed: - Cost of Material Consumed for FY2024 stood at Rs 2,380.33 lakhs
whereas the same was reported at Rs 1,905.26 lakhs in FY2023, representing a increase of 24.93%. This
increase in the cost of materials consumed is attributed to increase in demand in production and revenue
of our company. In proportion to total income, it represents 82.27% of total Income in the Financial
Year 2023-24 whereas in financial year 2022-23 it comprises 87.15% of total income. It is visible that
cost of material consumed decreased in FY2024 due to automated environment reduced wastage,
improved efficiency.

Changes in Inventories of Finished Goods & WIP: - Changes in Inventory of Finished Goods & WIP
in FY2024 reported an increase in closing stock of Rs. 457.29 lakhs the same stood at Rs. 288.31 lakhs
in FY2023, representing an increase majorly due to an increase in stock of wip to meet the anticipated
demand in FY2025 from merger of entity in FY2024. In proportion to revenue, it represents 15.80% in
FY2024 compare to 13.19% in FY2023.

Employee benefits expense: - Employee Benefit Expense for Financial Year 2024 stood at Rs 171.10
Lakhs as compared to Rs. 129.64 lakhs in FY2023. In proportion to total Income, it represents 5.91%
in FY2024 whereas in FY2023 it was 5.93%. Our company has managed to maintain the employee
benefits expense at the similar level compared to previous year.

Finance Cost: - Finance cost for FY2024 reported at Rs 93.84 lakhs compared to Rs 52.28 lakhs in
FY2023. This represents an increase of 79.50% in FY 2024. Increase in term loan of Rs. 216.72 lakhs
during the FY2024 resulted into increase in interest cost from Rs. 37.13 lakhs in FY2023 to Rs. 74.97
lakhs in FY2024. In proportion to total income finance costs represents 3.24% in FY2024 and 2.39%
in the FY2023.

Depreciation and Amortization Expenses: - Depreciation & Amortization expenses in FY2024 stood
at Rs 29.98 lakhs compared to Rs 8.03 lakhs in FY2023, representing an increase of 273.50% over
previous year. The increase in depreciation is due to purchase of Plant & Machinery of Rs 118.07 lakhs,
and Electrical Equipment of Rs. 44.69 lakhs by our company in FY2024. In proportion to total income
it represents 1.04% in FY2024 and 0.37% in FY2023.

Other Expenses: - Other Expenses of our company increased from Rs. 331.90 lakhs in FY2023 to Rs.
608.09 lakhs in FY2024. Primary reason for increase in other expense is increase in revenue in FY2024.

Other reasons for increase in other expenses are increase in Discount Allowed to customers from Rs.
16.04 lakhs in FY2023 to Rs. 43.66 lakhs in FY2024 to improve the debtors collection, increase in

transportation cost Rs. 17.64 lakhs in FY 2023 to Rs. 43.24 lakhs in FY2024, Increase in stitiching
charges by Rs. 18.53 lakhs in FY2024, Electricity charges from Rs. 18.33 lakhs in FY2023 to Rs. 35.19
lakhs in FY2024 and printing charges from Rs. 49.74 lakhs in FY2023 to Rs. 118.20 lakhs in FY2024
due to high demand of printed products by customers. It analyzed that in proportion to total income
other expenses increased by 6% approx. and represents 21.04% in FY2024 compared to 15.18% in
FY2023.

Restated Profit before Exceptional Items, Extraordinary Item & Tax:

Restated Profit before Exceptional Items, Extraordinary Item & Tax is reported at Rs 63.54 lakhs in
FY2024 compared to Rs. 47.40 lakhs in FY2023. When analyzing the Restated Profit before
Exceptional Items, Extraordinary Item & Tax in proportion to the total income, it is 2.20% in FY2024
and 2.17% in FY2023.

Profit after Tax: - Our company reported net profit after tax of Rs. 47.78 lakhs in FY2024 compared
to Rs. 35.68 lakhs in FY2023which marks an increase of 33.91% over FY2023. The PAT margin of our
company remained similar 1.63% in FY2023 and 1.65% in FY2024. The total expense in proportion to
total income incurred in FY2024 is 97.80% and in FY2023 it is 97.83%.

Our company was able to maintain the PAT margin similar to FY2023 in FY2024 and in absolute
number PAT of Rs. 47.78 lakhs in FY2024 and Rs. 35.68 lakhs in FY2023.

LIQUIDITY AND CAPITAL RESOURCES:

We have been able to finance our capital requirements and the expansion of our business and operations
through a combination of funds generated from our operations, equity infusions from shareholders and
debt financing, and we expect to continue to do so. Our primary capital requirements are for repayment
/ prepayment of Unsecured/Secured Loans, Investment in capital expenditure and working capital for
our operations.

We believe that after taking into account the expected cash to be generated from our business and
operations, the Net Proceeds from the Fresh Issue and the proceeds from our existing bank loans, we
will have sufficient capital to meet our anticipated requirements for our working capital, Capital
Expenditure and General Corporate Purposes requirements for the 12 months following the date of this
Draft Red Herring Prospectus. For the Financial Years ended on March 31, 2025, March 31, 2024 and
March 31, 2023 we had cash and cash equivalents (comprising of cash on hand and balances with banks)
of Rs. 72.89 lakhs, Rs. 24.70 lakhs and Rs. 32.47 lakhs respectively as per our Restated Financial
Statements.

CASH FLOW:

The table below summaries our cash flows from our Restated Financial Information for the financial
year ended on March 31, 2025, March 31, 2024 and March 31,2023.

Particulars	31st March 2025	31st March 2024	31st March 2023
	(Rs. in Lakhs)	(Rs. in Lakhs)	(Rs. in Lakhs)
Net Cash Flows From / (Used) In Operating Activities (A)	(357.52)	(362.34)	(31.92)
Net Cash Flows From / (Used) In Investing Activities (B)	(36.89)	(267.01)	(272.89)
Net Cash Flows From / (Used) In Financing Activities (C)	442.61	621.58	328.43
Net Increase / (Decrease) In Cash and Cash Equivalent (A+B+C)	48.20	(7.77)	23.62
Cash and Cash Equivalents at the beginning of the year	24.70	32.47	8.85
Cash and Cash Equivalent at The End of The Year	72.89	24.70	32.47

FINANCIAL MARKET RISKS

We are exposed to financial market risks from changes in borrowing costs, interest rates and inflation.
INTEREST RATE RISK

We are currently exposed interest to rate risks to the extent of outstanding loans. However, any rise in
future borrowings may increase the risk.

EFFECT OF INFLATION

We are affected by inflation as it has an impact on the material cost, operating cost, staff costs etc. In
line with changing inflation rates, we rework our margins so as to absorb the inflationary impact.

OTHER MATTERS INFORMATION REQUIRED AS PER ITEM 11 (II) (C) (IV) OF PART A
OF SCHEDULE VI TO THE SEBI (ICDR) REGULATIONS, 2018:

1. Unusual or infrequent events or transactions

Except as described in this Draft Red Herring Prospectus, there have been no other events or
transactions to the best of our knowledge which may be described as "unusual" or "infrequent".

2. Significant economic changes that materially affected or are likely to affect income from
continuing operations.

Our business has been subject, and we expect it to continue to be subject to significant economic
changes arising from the trends identified above in ‘Factors Affecting our Results of Operations and
the uncertainties described in the section entitled "Risk Factors" beginning on page no 43 of the Draft
Red Herring Prospectus. To our knowledge, except as we have described in the Draft Red Herring
Prospectus, there are no known factors which we expect to bring about significant economic changes.

3. Known trends or uncertainties that have had or are expected to have a material adverse impact
on sales, revenue or income from continuing operations.

Apart from the risks as disclosed under Section titled "Risk Factors" beginning on page no. 43 in this
Draft Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have
had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues, in case of events such as future
increase in labour or material costs or prices that will cause a material change are known.

Our Companys future costs and revenues will be determined by demand/supply situation, government
policies and other economic factor.

5. Extent to which material increases in net sales or revenue are due to increased sales volume,
introduction of new products or increased sales prices.

Fascinate Textiles Limited (registered under MSME) is engaged in the manufacturing of readymade
garments, with operations based in West Bengal. Our product range spans menswear, womenswear, and

childrenswear, with a significant portion of our output focused on garments for children. Our offerings
include t-shirts, joggers, vests, leggings, shorts, and infant wear, among others, catering to a variety of
end-use segments and age groups.

6. Total turnover of each major industry segment in which the issuer company operated.

The Company operates in the textile industry. Relevant industry data, as available, has been included in
the chapter titled "Industry Overview" beginning on page 156 of this Draft Red Herring Prospectus.

7. Status of any publicly announced new products or business segment.

Fascinate Textiles Limited (registered under MSME) specializing in manufacturing of Readymade
Garments. It spans urban as well as semi-urban markets. Our Company has not announced any new
product and segment / scheme, other than disclosed in chapter title "Our Business" beginning on Page
173 in this Draft Red Herring Prospectus.

8. The extent to which business is seasonal.

Our business does not depend to a certain extent on the seasonal, environmental and climate changes.
Hence, our business is not seasonal in nature.

9. Competitive conditions:

We face competition from existing and potential competitors which is common for any business. Over
a period of time, we have developed certain competitive strengths which have been discussed in section
titles "Business Overview" beginning on page 173 of this Draft Red Herring Prospectus.