AURUS GEM CORPORATION LTD Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Company is engaged in the business of diamonds and related activities and continues to focus on strengthening its business operations, improving operational efficiencies and enhancing value addition across its activities.

During the year under review, the Company, with the approval of its shareholders, disposed of its factory building and machinery situated at Chhapi, Gujarat. The disposal was undertaken as part of the Companys business strategy and rationalisation of its assets and operations. Accordingly, the Company has ceased its manufacturing activities from the said facility.

The Company intends to utilise its resources prudently and focus on strengthening its core business activities, improving operational efficiency and exploring suitable opportunities for sustainable growth. The Company will continue to evaluate opportunities in the diamond and jewellery sector based on prevailing market conditions, customer requirements and available resources.

The diamond industry continues to remain competitive and is influenced by several factors, including global economic conditions, consumer demand, availability and prices of rough diamonds, prices of polished diamonds, foreign exchange fluctuations, international trade conditions, geopolitical developments and changes in consumer preferences.

The Company continues to monitor developments in the industry and remains focused on adapting its business strategy to changing market conditions while maintaining prudent financial and operational management.

2. OPPORTUNITIES AND THREATS:

We begin the new financial year with hope and optimism with good opportunities available to the company to enhance the product mix, enter new markets and industry sectors primarily in the Indian market. The challenges will be to curtail the impact of spiked metal prices on our profitability.

3. SEGMENT WISE OR PRODUCT-WISE PERFORMANCE:

The company primarily trades in polished diamonds and performance has been in line with industry standards

4. RISKS AND CONCERNS:

The Company has a robust Enterprise Risk Management framework which enables it to take certain risks to remain competitive and achieve higher growth and at the same time mitigate other risks to maintain sustainable results.

The framework defines the process for identification of risks, its assessment, mitigation measures, monitoring and reporting. While the Company, through its employees and Executive Management, continuously assess the identified Risks, the Audit Committee reviews the identified Risks and its mitigation measures annually.

5. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The Company has an Internal Audit department with adequate experience and expertise in internal controls, operating system and procedures.

The system is supported by documented policies, guidelines and procedures to monitor business and operational performance which are aimed at ensuring business integrity and promoting operational efficiency.

6. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE: Given in the Director report of the company.

7. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

Our people are central to the Companys continued growth and success. We are committed to fostering a focused and collaborative work environment that encourages accountability, continuous learning and professional development. As the Company grows, we remain focused on building the capabilities and talent required to support our evolving business objectives.

As on 31 st March 2026 there were 4 permanent employees of Management Staff on role of the Company. With the increase of volume and further plan of going ahead in trading of diamonds, the Company is expecting to increase recruitments.

8. DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREOF, INCLUDING: There were no significant changes in the key ratio.

9. CAUTIONARY STATEMENT:

Statements in this report on describing the Companys objectives, expectations or predictions may be forward looking statements within the meaning of applicable security laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could however differ materially from those expressed or implied.

The Company assumes no responsibility in respect of the forward looking statements herein which may undergo changes in future on the basis of subsequent developments, information or events.

	For and on Behalf of the Board
	For Aurus Gem Corporation Limited
Date: 05.09.2026	(Formerly Known As Lypsa Gems & Jewellery Limited)
Place: Banaskantha	sd/-
	Dipan Patwa
	Chairman and Managing Director
	DIN: 02579405