Fascinate Textiles Ltd Management Discussions

The following discussion and analysis of our financial condition and results of operations for the financial years ended on March 31, 2026, 2025 and 2024 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 286 of this Red Herring Prospectus. Our Restated Financial Statements have been derived from our audited financial statements and restated in accordance with the SEBI ICDR 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 286 included in this Red Herring Prospectus. You should also read the section titled “Risk Factors” on page 47 and the section titled “Forward Looking Statements” on page 28 of this 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 Statement for 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 Red Herring Prospectus under “Financial Statements” on Page 286. 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 of the 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 21, 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, 2026, 2025 and 2024.

Revenue from Various Business Segment (Amt. in Rs. Lakhs)
Sl No. Business Segment	Fiscal 2026	% of Total Revenue	Fiscal 2025	% of Total Revenue	Fiscal 2024	% of Total Revenue
1 Kids Garments	4,497.53	38.41	2,156.57	35.80	1,847.09	63.96
2 Infant Garments	2,572.52	21.97	1,120.54	18.60	69.52	2.41
3 Womens Garment	1,026.01	8.76	403.76	6.70	454.98	15.75
4 Mens Garment	3,362.13	28.71	690.90	11.47		-
5 Yarn	13.84	0.12	583.30	9.68	-	-
6 Knitted Fabric	231.60	1.98	700.15	11.62	516.43	17.88
7 Woven Fabric	5.06	0.04	369.50	6.13		-
Total	11,708.69	100.00	6,024.73	100.00	2,888.02	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 286 of this Red Herring Prospectus.

Principle Components of our Restated Statement of Assets & Liabilities

FY 2026 Compared with FY 2025:

Particulars	For the period ended March 31,		Increase/ (Decrease)
	2026	2025	Amount	%
Liabilities
Long Term Borrowings	602.04	528.39	73.65	13.94
Short Term Borrowings	2,000.06	1,292.52	707.54	54.74
Trade Payables	2,728.77	1,016.08	1,712.69	168.56
Assets
Long term loans and advances	5.00	5.00	-	-
Inventories	4,812.93	1,546.60	3266.33	211.19
Trade Receivables	3,527.74	1,733.03	1,794.71	103.56
Short term loans and advances	291.39	301.27	(9.88)	(3.28)

Reasons for change:

Long-Term Borrowings: Long-term borrowings increased by Rs. 73.65 lakhs, which represents a rise of 13.95%, from Rs. 528.39 lakhs in FY 2025 to Rs. 602.04 lakhs in FY 2026. The primary reason for this increase was, new unsecured loans taken from body corporates.

Short Term Borrowings: Short-term borrowings increased by Rs. 707.54 lakhs, representing a 54.74% increase from Rs. 1,292.52 lakhs in FY2025 to Rs.2,000.06 lakhs in FY 2025. Primarily the increase is driven by increase in working capital loan by Rs. 672.27 lakhs and Rs. 35.27 lakhs as reclassification of the current maturities of long-term borrowings under short-term borrowings.

Trade Payables: The trade payables of our company increased from Rs.1,016.08 lakhs in FY2025 to Rs. 2,728.77 lakhs in FY2025 which represents an increase of 168.56%. The increase in absolute numbers is mainly due to growth in revenue of our company. However, in terms of days it decreased from 84 days in FY2025 to 64 days in FY2026 which reflects the companys strategy of early settlement of creditors to avail early payment discount which is a general practice in the industry.

Inventories: For the financial year ended March 31, 2026, our company reported a significant increase in closing inventories, which rose by 211.19%, compared to an 88.01% increase in Revenue from Operations. The closing inventory as on March 31, 2026 comprised the following:

Stock-in-Process: Rs.2,395.49 lakhs Raw Materials: Rs.1,575.66 lakhs Finished Goods: Rs.841.78 lakhs

The disproportionate increase in inventory levels, relative to revenue growth, is primarily attributable to the orders in hand to be dispatched in the Q1 of FY 2027.

Trade Receivables: Trade receivables increased by Rs. 1,794.71 lakhs, representing an increase of 103.56%, from Rs. 1,733.03 lakhs as at March 31, 2025 to Rs. 3,527.74 lakhs as at March 31, 2026. As a percentage of revenue from operations, trade receivables increased marginally from 28.77 % in Fiscal 2025 to 30.13% in Fiscal 2026. The increase in trade receivables was broadly in line with the growth in the Companys revenue from operations during the year.

Short term loans and advances: Our Short-term loans and advances decreased slightly by Rs.9.88 lakhs which represents 3.28% decrease from Rs. 301.27 lakhs in FY2025 to Rs. 291.39 lakhs in FY2026. The increase is mainly due to decrease in advance paid to suppliers.

FY 2025 Compared with FY 2024:

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	0.00	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.

The disproportionate increase in inventory levels, relative to revenue growth, is primarily attributable to the following specific business factors:

1. Acquisition of New Enterprises and Resultant Inventory Consolidation

In January 2024, we completed the takeover of S R Creation and Raiment Lifestyle Co. As part of the acquisition, substantial quantities of raw materials held by these entities were consolidated into our companys books.

The acquired businesses brought in raw material inventory amounting to Rs.441.72 lakhs, which directly contributed to the sharp increase in closing raw material inventory as of March 31, 2024.

This acquisition-related inventory addition was one-time in nature and significantly impacted the year- end inventory figure.

2. Increased Production for Confirmed Orders Scheduled for Q1 FY2025

As on March 31, 2024, our company had firm orders in hand that were scheduled for delivery in the first quarter of FY2025. To adhere to customer timelines and avoid production bottlenecks, we strategically increased production during Q4 FY2024.

This led to higher levels of finished goods stocked and ready for dispatch, and elevated stock-in-process, which was subsequently converted and delivered in early FY2025.

During the period April-June 2024, we successfully executed these orders and achieved sales of Rs.748.46 lakhs, validating the need for the inventory buildup to support timely fulfillment.

This buildup reflects a strategic operational decision to ensure uninterrupted supply, maintain customer satisfaction, and leverage production efficiencies.

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. 138 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 May 11, 2026 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 Red Herring Prospectus. Further, the KPIs herein have been certified by M/s Jain Sonu & Associates, Chartered Accountants, by their certificate dated May 26, 2026,

who hold a valid certificate issued by the Peer Review Board of the ICAI. The Statutory Auditors certificate dated May 26, 2026 has been included in the section ‘Material Contracts and Documents for Inspection beginning on Page no. 464 of this 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-

Sr. Metrix No.	As of and for the Fiscal
	2026	2025	2024
1 Revenue From Operation (Rs. in Lakhs)	11,708.69	6024.73	2888.02
2 Total Income (Rs. in Lakhs)	11,722.80	6,027.68	2,889.59
3 Growth (%) in Total Income	94.48%	108.60%	32.17%
4 Operating EBITDA (Rs. in Lakhs)	2,400.39	998.18	163.06
5 Year on Year growth in Operating EBITDA (%)	140.48%	512.15%	77.79%
6 Operating EBITDA Margin (%)	20.50%	16.57%	5.65%
7 Profit/(loss) after tax for the year (Rs. in Lakhs)	1,509.70	581.11	47.78
8 Growth (%) in PAT	159.80%	1116.17%	33.91%
9 Net profit Ratio / PAT Margin (%)	12.89%	9.65%	1.65%
10 Return on Assets (ROA) (%)	22.37%	17.17%	2.32%
11 Return on Equity (ROE) (%)	72.08%	78.00%	13.31%
12 Debt To Equity Ratio	0.83	1.74	2.77
13 ROCE (%)	54.82%	42.41%	11.66%
14 Current Ratio	1.58	1.38	1.14
15 Net Capital Turnover Ratio	5.58	9.68	17.49
16 P/E Ratio	[•]	[•]	[•]
17 EPS	14.66	5.68	0.47
18 Networth	3,144.20	1,044.54	445.43

Notes:

a) As certified by M/s Jain Sonu & Associates., Chartered Accountants pursuant to their certificate dated May 26, 2026, the Audit committee in its resolution dated May 11,2026 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 thisRed Herring Prospectus other than as disclosed in this section.

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

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

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

e) 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.

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

g) 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.

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

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

j) 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.

k) 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)

l) 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).

m) 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

n) EPS is calculated as PAT of relevant year divided by Average number of Equity Share

o) 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 (Rs. in Lakhs)	Revenue from Operations is used by our management to track the revenue profile of the business and in turn helps assess the overall financial performance of our Company and Size of our business.
Total Income (Rs. in Lakhs)	Total Income is used to track the total revenue generated by the business including other income.
Operating EBITDA (Rs. 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 financial performance of our business.
Profit After Tax for the year (Rs. in Lakhs)	Profit after tax provides information regarding the 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 Company generates 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

In the opinion of the Board of Directors of our Company, since the date of last audited balance sheet on March 31, 2026 as disclosed in this Red Herring Prospectus, there has been no such significant developments or any circumstance that materially or adversely affects or are likely to affect the profitability of our Company or the value of any of its assets or its ability to pay its material liabilities within the next twelve months.

Factors affecting our Business:

Our business is subjected to various risks and uncertainties, including those discussed in the section titled “Risk Factors” beginning on page no. 47 of this 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, 2026, 31st March, 2025 and 31st March, 2024.

Restated Statement of Profit & Loss Account For the year ended on

Particulars	31st March 2026	% of Total Income	31st March 2025	% of Total Income	31st March 2024	% of Total Income
A INCOME	(Rs. in lakhs)		(Rs. in lakhs)		(Rs. in lakhs)
I Revenue from Operation	11,708.69	99.88%	6,024.73	99.95%	2,888.02	99.95%
II Other Income	14.11	0.12%	2.95	0.05%	1.57	0.05%
III TOTAL INCOME (I+II)	11,722.80	100.00%	6,027.68	100.00%	2,889.59	100.00%
B EXPENSES
Cost of Raw Materials consumed	9,507.31	81.10%	3,885.73	64.46%	2,380.33	82.38%
Change in Inventories of Finished Goods Work-InProgress & Stock-In-Trade	(2,145.35)	-18.30%	(297.35)	-4.93%	(457.29)	-15.83%
Employee Benefits Expense	449.34	3.83%	310.62	5.15%	171.10	5.92%
Finance Costs	229.57	1.96%	162.88	2.70%	93.84	3.25%
Depreciation and Amortization Expense	58.64	0.50%	51.61	0.86%	29.98	1.04%
Other Expenses	1,488.85	12.70%	1,105.86	18.35%	608.09	21.04%
IV TOTAL EXPENSES	9,588.35	81.79%	5,219.35	86.59%	2,826.05	97.80%
PROFIT BEFORE EXCEPTIONAL AND
V EXTRAORDINARY ITEMS AND TAX (III-IV)	2,134.45	18.21%	808.32	13.41%	63.54	2.20%
VI EXCEPTIONAL ITEMS	-		-		-
VII PROFIT BEFORE EXTRAORDINARY ITEMS AND TAX (V-VI)	2,134.45	18.21%	808.32	13.41%	63.54	2.20%
VIII EXTRAORDINARY ITEMS	-		-		-
IX PROFIT BEFORE TAX ( VII-VIII)	2,134.45	18.21%	808.32	13.41%	63.54	2.20%
X TAX EXPENSES:
(1) Provision for Income Tax
- Current Tax	622.83	5.31%	221.84	3.68%	16.52	0.57%
- Earlier Years Provision	-		-		-
(2) Deferred Tax
- Deferred Tax Liability created/ (reversed)	1.92	0.02%	5.38	0.09%	(0.75)	-0.03%
TOTAL OF TAX EXPENSES	624.75	5.33%	227.22	3.77%	15.76	0.55%
PROFIT/(LOSS) FOR THE YEAR (IX-X )	1,509.70	12.88%	581.11	9.64%	47.78	1.65%

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, discount received, duty drawback 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 yarn, 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 2025-26, Financial Year ending 2024-25 and Financial Year ending 2023-24 are 99.88%, 99.95% and 99.95% of total income respectively. In terms actual numbers revenue from operations are Rs. 11,708.69 lakhs in FY2026, Rs. 6,024.73 lakhs in FY2025 and Rs. 2,888.02 lakhs in FY2024.

Other Income: - The other income majorly includes interest, discount received, duty drawback and balance written off. Other income of Rs 14.11 lakhs, Rs. 2.95 lakhs and Rs. 1.57 lakhs reported for the FY2026, FY2025 and FY2024 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 9,507.31, Rs 3,885.73 lakhs and Rs. 2,380.33 lakhs for FY2026, FY2025 and FY2024 respectively. In terms of proportion to total income it represents 81.10%, 64.46% and 82.38% in FY2026, FY2025 and FY2024 respectively.

Changes in Inventories of WIP & Finished Goods: - The changes in Inventories of WIP & Finished Goods reported an increase in closing value by Rs. 2,145.35 lakhs in FY2026, Rs. 297.35 lakhs in FY2025 and Rs. 457.29 lakhs in FY2024. In proportion to total income, it represents 18.30%, 4.93%, and 15.83% in FY2026, FY2025 and FY2024 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 449.34 lakhs, Rs 310.62 lakhs and Rs. 171.10 lakhs for FY2026, FY2025 and FY2024 respectively. In terms of proportion to total income it represents 3.83%, 5.15% and 5.92% in FY2026, FY2025, and FY2024 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 229.57 lakhs, Rs 162.88 lakhs and Rs. 93.84 lakhs for FY2026, FY2025 and FY2024 respectively. In terms of proportion to total income it represents 1.96%, 2.70% and 3.24% in FY2026, FY2025 and FY2024 respectively.

Depreciation and Amortization Expenses: - Our company reported depreciation and amortization at Rs. 58.64 lakhs in FY2026, Rs. 51.61 lakhs in FY25 and Rs. 29.98 lakhs in FY24.

Other expenses: - Other expenses of our company is Rs. 1,488.85 lakhs, Rs. 1,105.86 lakhs and Rs. 608.09 lakhs in FY2026, FY2025 and FY2024 respectively. In proportion to total income other expenses stood at 12.70% in FY2026, 18.35% in FY25 and 21.04% in FY24.

Details of Financial Year 2024-25 compared to Financial Year 2025-26 (Based on Restated Financial Statements)

Total Income: -Total Income for the FY2026 stood at Rs. 11,722.80 lakhs compared to Rs. 6,027.68 lakhs in FY 2025. The total income includes revenue from operations and other income, it has operating revenue of 99.88% in FY2026 and 99.95% in FY2025 and other income of 0.12% in FY2026 and 0.05% in FY2025.

Revenue from Operations: -Revenue from Operations for FY 2026 reported at Rs. 11,708.69 lakhs compared to Rs 6,024.73 lakhs in FY2025. This increase of 94.34% is primarily attributed to growth in revenue from new customers, additional segment of Mens wears and additional revenue from local market sales during the financial year.

Other Income: - Other income of our company increased from Rs. 2.95 lakhs in FY2025 to Rs. 14.11 lakhs in FY2026. Reason for increase is attributed to benefits of Duty Drawback received of Rs. 8.78 lakhs in FY2026.

Total Expenses: The Total Expense for FY2026 stood at Rs. 9,588.35 lakhs compared to Rs. 5,219.35 lakhs in FY2025. In proportion to revenue, it represents 81.79% in FY2026 compared to 86.59% in FY2025. We managed to reduce our total expense to total income in FY2026 as compared to FY2025. Increase in absolute numbers are in line with the increase in revenue and production.

Cost of Materials Consumed: - Cost of Material Consumed for FY2026 stood at Rs 9,507.31 lakhs whereas the same was reported at Rs 3,885.73 lakhs in FY2025, representing an increase of 144.67%. 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 81.10% of total Income in the Financial Year 2025-26 whereas in financial year 2024-25 it comprises 64.46% of total income.

Changes in Inventories of Finished Goods & WIP: - Changes in Inventory of Finished Goods & WIP in FY2026 reported an increase in closing stock of Rs. 2,145.35 lakhs the same stood at Rs. 297.35 lakhs in FY2025, representing an increase majorly due to an increase in stock of WIP to meet the anticipated demand in the products and based on orders in hand to be dispatched. In proportion to revenue, it represents 18.30% in FY2026 compared to 4.93% in FY2025.

Employee benefits expense: - Employee Benefit Expense for Financial Year 2026 stood at Rs 449.34 lakhs as compared to Rs. 310.62 lakhs in FY2025. In proportion to total Income, it represents 3.83% in FY2026 whereas in FY2025 it was 5.15%. Our company has managed to reduce the employee benefits expense compared to previous year.

Finance Cost: - Finance cost for FY2026 reported at Rs 229.57 lakhs compared to Rs 162.88 lakhs in FY2025. This represents an increase of 40.94% in FY 2026. Increase in short term borrowings of Rs. 672.27 lakhs during the FY2025 resulted into increase in interest cost from Rs. 141.20 lakhs in FY2025 to Rs. 221.41 lakhs in FY2026. In proportion to total income finance costs represents 1.96% in FY2026 and 2.70% in the FY2025.

Depreciation and Amortization Expenses: - Depreciation & Amortization expenses in FY2026 stood at Rs 58.64 lakhs compared to Rs 51.61 lakhs in FY2025, representing an increase of 13.63% over previous year. The increase in depreciation is due to purchase of Plant & Machinery of Rs 43.35 lakhs, and Computers & peripherals of Rs. 3.27 lakhs by our company in FY2026. In proportion to total income, it represents 0.50% in FY2026 and 0.86% in FY2025.

Other Expenses: - Other Expenses of our company increased from Rs. 1,105.86 lakhs in FY2025 to Rs. 1,488.85 lakhs in FY2026. Primary reason for increase in other expense is increase in revenue in FY2026.

Primary reasons for increase in other expenses are increase in finishing charges by Rs. 153.94 lakhs, Stitching charges by Rs. 85.65 lakhs in FY2026. It analyzed that though it is increased in absolute numbers the same has been decreased in proportion to total income by 6% approx. and represents 12.70% in FY2026 compared to 18.35% in FY2025.

Restated Profit before Exceptional Items, Extraordinary Item & Tax:

Restated Profit before Exceptional Items, Extraordinary Item & Tax is reported at Rs 2,134.45 lakhs in FY2026 compared to Rs. 808.32 lakhs in FY2025. When analyzing the Restated Profit before Exceptional Items, Extraordinary Item & Tax in proportion to the total income, it is 18.21% in FY2026 and 13.41% in FY2025.

Profit after Tax: - Our company reported net profit after tax of Rs. 1,509.70 lakhs in FY2026 compared to Rs. 581.11 lakhs in FY2025 which marks an increase of 159.80% over FY2025. The PAT margin of our company stood at 12.88% in FY2026 and 9.64% in FY2025. The total expense in proportion to total income incurred in FY2026 is 81.79% and in FY2025 it is 86.59%.

In proportion to revenue from operations, dyeing expenses reduced to 2.32% in FY2026 from 4.21% in FY2025, resulting in an improvement in operating margins by approximately 2%. Further, printing expenses decreased from 2.27% of revenue in FY2025 to 1.38% in FY2026. The reduction was primarily attributable to a change in the order mix, with the Company executing a higher proportion of orders requiring relatively lower dyeing and printing activities.

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 2,889.59 Lakhs in Financial year 2023-24, representing an increase of 108.60%. 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. 2,826.05 Lakhs in Financial Year 2023-24, representing an increase of 84.69%. 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 82.38% 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 82.38% to 64.46%.

Though in proportion to total income cost of material consumed is representing a drop from 82.38% 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 expenses amounted to Rs.310.62 lakhs in FY 2025 and Rs.171.10 lakhs in FY 2024. The increase in employee benefit expenses is primarily attributable to the engagement of additional contractual labour to support higher production requirements. However, as a proportion of total revenue, these expenses constituted 5.15% in FY 2025 and 5.92% in FY 2024, indicating that employee costs have remained broadly consistent relative to revenue across both years. In FY 2024, our company employed 82 permanent employees. To cater to the increased operational and production requirements in FY 2025, we engaged additional manpower on a contractual basis. These contract workers are not part of the permanent workforce. During FY 2025, we engaged 69 contract employees in addition to 79 permanent employees. Consequently, a total of 148 personnel contributed to the operations during FY 2025, resulting in total employee benefit expenses of Rs.310.62 lakhs for the 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 FY2024.

Other Expenses: - Other Expense for FY2025 stood at Rs 1,105.86 Lakhs compared to Rs. 608.09 Lakhs in FY2024 a jump of 81.86% 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 21.04% 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% over cost 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.

LIQUIDITY AND CAPITAL RESOURCES:

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 Red Herring Prospectus. For the Financial Years ended on March 31, 2026, March 31, 2025 and March 31, 2024 we had cash and cash equivalents (comprising of cash on hand and balances with banks) of Rs. 81.59 lakhs, Rs. 72.89 lakhs and Rs. 24.70 lakhs respectively as per our Restated Financial Statements.

Reconciliation Statement Explaining Divergence Between High PAT and Negative CFO

During the financial year 2025, our company reported a PAT of Rs. 581.11 lakhs, while the Cash Flow from Operations stood at Rs. (357.52) lakhs. The apparent divergence is primarily attributable to significant movements in working capital, particularly the creation of new receivables following higher sales volumes. A detailed and quantified reconciliation is presented below:

Particulars	Amount Rs. in Lakhs
PAT reported by the company for FY2025	581.11
Add: Non-cash adjustments	439.44
Less: Working capital changes	(1378.07)
Cash Flow from Operations	(357.52)

The major change in working capital relates to Trade Receivables, which increased by Rs. (1,199.24) lakhs, resulting in a closing Trade receivable of Rs. 1,733.03 lakhs as on March 31, 2025. This rise is mainly due to substantial year-end sales, including Rs. 593.73 lakhs sold in March 2025, which remained outstanding at year end.

Additionally, we extended 90-120 days credit terms to local market customers. Local market sales of Rs. 703.67 lakhs in February 2025 and Rs. 339.30 lakhs in March 2025 were therefore not yet due at year end and were subsequently realized by July 2025.

Detailed Ageing & Quality of New Receivables

Ageing of Receivables (Rs. 1,733.03 lakhs)

Ageing Bucket	Amount (Rs. Lakhs)	% of Total	Remarks
0-45 Days	976.00	56.31%	Within credit terms
46-90 Days	670.03	38.70%	Expected to be collected in operating cycle
91-180 Days	79.00	4.55%	Slight delays due to customer inventory cycles
>180 Days	8.00	0.44%	Mostly from new clients, under active followup

Quality Assessment

• % of receivables from long-standing customers: 20.21 %

• % from new customers acquired in FY 24-25: 79.79%

• Receivables disputed: Rs. Nil lakhs

• Receivables provided for: Rs. Nil lakhs

CASH FLOW:

The table below summaries our cash flows from our Restated Financial Information for the financial year ended on March 31, 2026, March 31, 2025 and March 31, 2024.

Particulars	31st March 2026	31st March 2025	31st March 2024
Net Cash Flows From / (Used) In Operating Activities (A)	(1,087.37)	(357.52)	(362.34)
Net Cash Flows From / (Used) In Investing Activities (B)	(45.53)	(36.89)	(267.01)
Net Cash Flows From / (Used) In Financing Activities (C)	1,141.60	442.61	621.58
Net Increase / (Decrease) In Cash and Cash Equivalent (A+B+C)	8.70	48.20	(7.77)
Cash and Cash Equivalents at the beginning of the year	72.89	24.70	32.47
Cash and Cash Equivalent at The End of The Year	81.59	72.89	24.70

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 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 47 of the Red Herring Prospectus. To our knowledge, except as we have described in the 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. 47 in this 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 178 of this 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 194 in this 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 194 of this Red Herring Prospectus.