Midwest Ltd Management Discussions

OPERATIONS

In this Red Herring Prospectus, unless the context otherwise indicates, requires or implies, any reference to "the Company" or "our Company" refers to Midwest Limited, on a standalone basis, and any reference to "we", "us" or "our" is a reference to our Company collectively with our Subsidiaries and Joint Ventures, on a consolidated basis, as of and for the relevant years covered by the Restated Consolidated Financial Statements.

The following discussion and analysis is intended to convey the managements perspective on our financial condition and results of operations as of, andfor the three-month period ended June 30, 2025 and as of, andfor the financial years ended, March 31, 2025, March 31, 2024 and March 31, 2023. The following information is qualified in its entirety by, and should be read together with, the more detailed financial and other information included in this Red Herring Prospectus, including the information contained in "Risk Factors", "Industry Overview", "Our Business" and "Restated Consolidated Financial Statements" beginning on pages 32, 173, 242 and 340, respectively, as well as financial and other information contained in this Red Herring Prospectus as a whole.

Our financial year ends on March 31 of each year, and references to a particular Financial Year or Fiscal are to the 12- month period ended March 31 that year, unless the context indicates otherwise.

Unless otherwise stated or the context otherwise requires, the financial information as of, and for the three-month period ended June 30, 2025 and as of, and for the financial years ended, March 31, 2025, March 31, 2024 and March 31, 2023 included in this section has been derived from the Restated Consolidated Financial Statements included in this Red Herring Prospectus on page 340. We have also included various financial and operational performance indicators in this Red Herring Prospectus, some of which have not been derived from the Restated Consolidated Financial Statements. The manner of calculation and presentation of some of the financial and operational performance indicators, and the assumptions and estimates used in such calculations, may vary from that used by other companies in India and other jurisdictions. Also see "Risk Factors— "This Red Herring Prospectus includes certain Non-GAAP Measures, financial and operational performance indicators and other industry measures related to our operations andfinancial performance. The Non-GAAP Measures and industry measures may vary from any standard methodology that is applicable across the Indian mining industry and, therefore, may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies" on page 59. Ind AS differs in certain respects from Indian GAAP, IFRS and U.S. GAAP and other accounting principles with which prospective investors may be familiar. We have not attempted to quantify the impact of the IFRS or U.S. GAAP on the financial information included in this Red Herring Prospectus, nor do we provide a reconciliation of our financial information to IFRS or U.S. GAAP. Also see "Risk Factors— Dfferences exist between Ind AS and other accounting principles, such as Indian GAAP, IFRS and U.S. GAAP, which may be material to investors assessments of our financial condition, result of operations and cash flows. " on page 71.

Some of the information in this section, including information with respect to our plans and strategies, contain forwardlooking statements that involve risks and uncertainties. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. You should read "Forward-Looking Statements" and "Risk Factors" beginning on pages 30 and 31, respectively, for a discussion of the risks and uncertainties related to those statements that may affect our business, financial condition or results of operations.

Unless stated otherwise, industry and market data used in this section have been extracted from the CRISIL Report, which was prepared and issued by CRISIL Intelligence, which was exclusively commissioned and paid for by our Company for the purposes of the Offer. The industry related data included in this section may have been re-ordered by us for the purposes ofpresentation, however, there are no parts, data or information (which may be relevant for the Offer) that has been left out in any manner. A copy of the CRISIL Report will be available on the Companys website at http://www.midwest.in/from the date of this Red Herring Prospectus until the Bid/Offer Closing Date. Also see "Certain Conventions, Presentation of Financial, Industry and Market Data and Currency of Presentation—Industry and Market Data " on page 26.

OVERVIEW About Us

We have a legacy of more than four decades in the dimensional natural stone (i.e., naturally occurring stones) industry with experience in exploration, development and operation of mines, stone processing and fabrication, sales, distribution and marketing of various types of natural stone. We are engaged in the business of exploration, mining, processing, marketing, distribution and export of natural stones, with an emphasis on sustainability. We are Indias largest producer and exporter

of Black Galaxy Granite (a variety of Granite which is sparkling with flakes of a golden hue), and held a share of approximately 64% of the Indian export market for Black Galaxy Granite in Fiscal 2025 (Source: CRISIS Report), exporting 44,992 cubic meters of Black Galaxy Granite during Fiscal 2025. We are also the largest producer in Absolute Black Granite (a variety known for its remarkable surface finish) in India, both of which have high demand. Our Absolute Black Granite production accounted for 15.7% of the overall black granite production in India during Fiscal 2025.

We place much emphasis on decarbonizing our operations to improve the sustainability of our business. Our mining operations are mechanized and incorporate advanced engineering and process optimization, aided by vertical integration of key operational components such as customized Diamond Wires. We beneficially leverage our experience and organizational capabilities to serve as an organized player in an otherwise unorganized sector with the objective of catering to the requirements of our customers, improving our processes, expanding our market reach and building our resource base.

Our Operations

Our existing business activities primarily comprise extracting and processing Dimensional Granite (ie, Granite that is cut to conform to the specifications in terms of size and shape), particularly the Black Galaxy and Absolute Black varieties ("Natural Stone Segment"). In addition to our Natural Stone business, we also manufacture Diamond Wire, which is a precision cutting tool employed in the natural stone and construction industries to size stones and other hard substances with precision in mines and processing/ fabrication facilities ("Diamond Wire Segment"). While our operations in the Diamond Wire segment began with the objective of backward integration and supporting our Natural Stone Segment, at present, our operations in this segment cater both to our captive consumption as well as meeting market demand of the Indian mining and construction industry. Set out below is the breakdown of our revenue from operations across our key activities for the periods indicated.

During the quarter ended September 30, 2025, we commenced operations in our Quartz processing business through the operationalization of Phase I of our Quartz Processing Plant, located at the APIIC Growth Center (Building Materials Special Economic Zone) at Annangi Village, Prakasam District, Andhra Pradesh, India.

Segment	Three-month period ended June 30, 2025		Fiscal 2025		Fiscal 2024		Fiscal 2023
	Revenue (f million)	% of Revenue from operations	Revenue (f million)	% of Revenue from operations	Revenue (f million)	% of Revenue from operations	Revenue (f million)	% of Revenue from operations
Black Galaxy and Absolute Black Granite
Black Galaxy Granite
- Exports	617.42	43.40	3,411.01	54.47	3,619.50	61.81	2,991.38	59.53
- Domestic	375.23	26.38	943.84	15.07	617.76	10.55	549.36	10.93
Absolute Black Granite
- Exports	31.69	2.23	107.80	1.72	38.02	0.65	47.06	0.94
- Domestic	313.78	22.06	1,546.90	24.70	1,351.89	23.08	1,244.12	24.76
Sub-total for Black Galaxy Granite and Absolute Black Granite (A)	1,338.11	94.06	6,009.55	95.97	5,627.17	96.09	4,831.93	96.16
Others
- Other natural stones(1)	21.19	1.49	92.07	1.47	140.64	2.40	88.04	1.75
- Diamond Wire	63.35	4.45	160.20	2.56	88.44	1.51	105.20	2.09
Sub-total for Others (B)	84.54	5.94	252.27	4.03	229.08	3.91	193.24	3.84
Total Revenue from Operations (A+B)	1,422.65	100.00	6,261.82	100.00	5,856.24	100.00	5,025.17	100.00

Notes:

2. Other natural stones includes revenue from the sale of Tan Brown Granite, Marble and Quartzite

In the Natural Stone Segment, we primarily produce dimensional blocks and slabs of Black Galaxy Granite and Absolute Black Granite. Black Galaxy Granite is a premium stone used in real estate projects for applications such as countertops and vanities, flooring, cladding, bathroom walls and floors, swimming pools, fire places and external/ internal aids in construction. Black Galaxy Granite is a highly valued natural stone that offers a unique combination of durability, beauty and versatility, making it a popular choice for architects, designers and builders around the world (Source: CRISIL Report). Black galaxy is available in only one village in Andhra Pradesh in the entire world. (Source: CRISIL Report) For a brief description of the types of Granite that we produce, see also "Definitions and Abbreviations - Industry related terms", "Industry Overview and "-Products and Production Details" on pages 11, 173 and 269. Absolute Black Granite is known for its deep uniform black color and is prized for its elegance and versatility (Source: CRISIL Report). In addition, its

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hardness, durability, resistance to weathering, visual appeal and low maintenance are some of its positive attributes. Absolute Black Granite is used to make sculptures, idols of deities, pillars, lintels (ie., beams installed over doors and windows) and plinths (i.e., heavy bases used to support statues) and has been extensively used in temples, monuments and memorials and is also used in modern architecture such as kitchen counters, flooring, bathroom vanities, cladding, windowsills, backsplashes, fireplaces, steps, building facades and fountains.

We currently have 16 operational Granite Mines across 6 locations in the states of Telangana and Andhra Pradesh in India producing Granite varieties such as Black Galaxy, Absolute Black, Tan Brown, along with one Granite processing facility in each of the states of Telangana and Andhra Pradesh. In addition to our operational mines, we have also established a resource base comprising 25 locations across Andhra Pradesh, Telangana, Karnataka and Tamil Nadu. For details of our Reserves and resource base, please see Description of our Business-Natural Stone Segment-Reserves and Resources" on page 260.

A majority of the Granite blocks extracted from our Mines are sold directly to bulk customers from our Mines or stock yards. Only a small fraction are sent to our two mechanized processing facilities in Andhra Pradesh for further processing into cut slabs. We have established the Granite processing facilities close to our Mines to improve product recovery by salvaging low-quality commercial blocks which might not be economical to transport and process elsewhere. Such facilities allow us to maintain a presence across the wholesale value chain for Granite and offer ‘mine to distribution capabilities to our customers.

Our customers, comprising processors and distributors, are located across 17 countries and five continents, with China, Italy and Thailand being our primary export markets. Our customers include MP STENEKO AB (based in Sweden); GI- MA STONE SRL (based in Italy); Quanzhou Xingguang Stone Co., Ltd. and the Xiamen Group (based in China);King Marble and Granite Co. Ltd. (based in Thailand); and Kodeyalam Stones, Anjanee Exports and Anjalee Granites Pvt Ltd (based in India). Our Granite has been used in various marquee projects including the CSSC Power (Group) Tower in Shanghai, China and the Shenyang MaoYe Center in Shenyang, China.

Our operations span across the Dimensional Granite value chain allowing us to cater to our customers requirements ranging from mine to distribution. Our relationship with our distributors is typically mutually exclusive for specified products. We enjoy long-standing relationship with our customers, as evidenced by our continued relationship and the long-term contracts with such customers. Most of these contracts require payment of an interest-free deposit as a condition precedent to the signing of the contract. This cash flow helps us reduce our working capital requirements. Set out below are details of the average duration of our relationship with our top customers.

Particulars	% Contribution to Revenue from operations in Fiscal 2025	% Contribution to Revenue from operations in the three-month period ended June 30, 2025	Average Duration of Relationship as of June 30, 2025 (in years)	Range (in years)
Top 5 customers	36.34	53.21	5	1 - 10
Top 10 customers	51.21	63.22	4	1 - 10

In our Diamond Wire Segment, we manufacture Diamond Wire at an advanced manufacturing facility (" Diamond Wire Facility") located in Hyderabad, Telangana. This location provides ready access to road and rail infrastructure which facilitates, and aids optimization of the logistics for, distribution of our products. Our plant design and operational sequence allows tailoring of products to meet the specific requirements of each of our mining operations and each type of stone that we extract. This captive facility helps us increase our operational efficiency and optimize operational costs in both mining and processing activities.

Exploration and Innovation

We place emphasis on process optimization through research and development ("R&D") activities. Our R&D activities in the Natural Stone Segment primarily comprise (i) locating, exploring and proving new mineral deposits; (ii) testing, validating and delineating the mineral bearing parcels to expand our resource base; and (iii) developing methods to increase the efficiency of our processes and production systems and improve the quality of our products; while in the Diamond Wire Segment, R&D activities involve improving the metallurgy, matrix composition, coatings, materials and our processes and production systems to improve product quality and reduce the cost of production.

As of June 30, 2025, we had a dedicated team of 1001 personnel, including 26 personnel specializing in electrical matters, 87 personnel with mining specializations, 58 personnel involved in production, 8 personnel (including 6 geologists) focusing on R&D and exploration and 822 contract workers who have, on average, 10.50 years of industry experience. We utilize a mix of permanent employees, consultants and contract workers in managing our operations. However, we deploy

an in-house team to handle our core operations and only meet certain auxiliary labor requirements through contract workers.

In recent years, there has been a growing emphasis on sustainable materials and environmentally friendly practices, leading to increased demand for natural stone that is responsibly sourced and have minimal environmental impact (Source: CRISIS Report). Accordingly, sustainability and environmental consciousness have been the key focus areas of our R&D activities. Key initiatives in this regard have included (i) the use of solar energy, electric dump trucks and electric dressing stations,

(ii) usage of expanding chemical powders to replace explosives, and (iii) installing automated fuel dispensing and systems monitoring the performance of the equipment, covering all consumption points, which enable monitoring of diesel consumption. These initiatives have allowed us to evolve efficient and sustainable practices and help us reduce our carbon footprint. Our R&D activities in the Diamond Wire segment have allowed us to increase the operating speed and useful life of our Diamond Wire, while reducing energy consumption. This was achieved by altering the composition of materials and modifying process parameters.

Set out below is our expenditure on R&D as a percentage of our revenue for the periods indicated:

Particulars	Three-month period ended June 30, 2025		Fiscal 2025		Fiscal 2024		Fiscal 2023
	Amount (f million)	% of Revenue	Amount (f million)	% of Revenue	Amount (f million)	% of Revenue	Amount (f million)	% of Revenue
R&D Expenditure	11.55	0.81	40.03	0.64	114.61	1.96	57.84	1.15

Emerging Businesses

Leveraging our experience and capabilities in our current business activities and with an intent to diversify our business, we have expanded into new businesses, as described below.

Quartz

Quartz, a crystalline mineral composed primarily of silicon dioxide (SiO2). It is an industrial mineral having a wide range of applications including building materials such as engineered stone, glass, and industrial application such as solar glass, foundries, refractory, crucibles, semi-conductors, fillers in paint and rubber and ceramics. Though abundant in nature, only select mines in India have sufficient deposits of suitable quality. Quartz grit and powder are essential materials in the manufacturing of engineered stone and solar glass. They are used as the primary components in the production of high- quality, durable and energy-efficient products. (Source: CRISIS Report)

In November, 2020, we secured and developed two Quartz Mines located in Andhra Pradesh, India. These mines are currently operational for extraction of Quartz, and we are further developing three additional Quartz Mines in Andhra Pradesh. In order to process the Quartz ore extracted from our Mines and provide value-added high purity Quartz products, we have established an advanced Quartz Processing Plant, which is being developed in two phases. Phase I has been

operationalized in the quarter ended September 30, 2025 and Phase II is being funded through the Net Proceeds. The Quartz Processing Plant produces Quartz grit and powder, at the APIIC Growth Center (Building Materials Special Economic Zone) at Annangi Village, Prakasam District, Andhra Pradesh, India. We have also entered into a consulting arrangement with a foreign producer of high purity Quartz products to assist with the commissioning of the Quartz Processing Plant.

Phase I of the facility has an installed capacity of 303,600 metric tonnes per annum of quartz grit and powder for use in the manufacture of Engineered Stone and Solar Glass and commenced operations during the quarter ended September 30, 2025. As on June 30, 2025, we had incurred a capital expenditure of Rs.1,263.32 million towards development of Phase I of the Quartz Processing Plant. We propose to expand the installed capacity by a further 303,000 metric tonnes per annum during Phase II, thereby creating a total installed capacity of 606,600 metric tonnes. Phase II will expand our capacity for producing Quartz grit and powder for use in Engineered Stone and Solar Glass. During Phase II, we will expand our product line to include grit suitable for production of ultra high purity Quartz powder, which is a pre-cursor for production of crucibles, optical glass and semi-conductors.

Phase II of the Quartz Processing Plant will be entirely funded through the Net Proceeds from the Offer. For further details regarding Phase II of the Quartz Processing Plant, see "Objects of the Offer- Investment in Midwest Neostone, our wholly owned subsidiary, by way of a loan, towards funding capital expenditure for the Phase II Quartz Processing Plant" on page 118.

Laza Grey Marble and Celestia Quartzite

We are developing facilities for extracting certain distinct varieties of Marble and Quartzite, branded as ‘Laza Grey Marble and ‘Celestia Quartzite. We have one Mine each for Grey Marble and Quartzite, located in Andhra Pradesh, India with an intent to compete with, imported Marble and Quartzite varieties in the Indian market, as they possess aesthetic and functional attributes similar to that of imported Marble and Quartzite varieties (Source: CRISIL Report), while being competitively priced. We are also exploring the potential of exporting our Laza Grey Marble and Celestia Quartzite to European markets, by working together with a company based in Italy.

Heavy Mineral Sand Mining

We are expanding our product portfolio through development of capabilities in Heavy Mineral Sand mining and processing. In this regard, we have incorporated two subsidiaries in Sri Lanka, Midwest Heavy Sands (Private) Limited and Trinco Mineral Sands Private Limited and have obtained four exploration licenses in Sri Lanka with potential to explore, develop and extract minerals such as Rutile, Ilmenite, Zircon, Garnet, Sillimanite and Monazite, which constitute the majority of the Heavy Mineral Sands. Ilmenite is a feedstock for production of Titanium Slag which is in-turn a precursor for manufacture of Titanium Pigment (TiO2), Synthetic Rutile (TiO2) and Titanium Sponge (metal). These products find application in varied industries such as paints (majority of rhetorical white pigments), aerospace (high strength to weight, corrosion/temperature resistant applications), chemical (sunscreens, water treatment, advanced ceramics, surface treatments), automotive (alloys in light weight high performance applications), electronics (sensors, semi-conductors) and medical industries (prosthetics, implants) on account of its light weight, high strength, resistance to corrosion and compatibility with human organs. (Source: CRISIL Report)

The table below sets out our expenses incurred for the exploration activities in Sri Lanka, as of the date indicated.

(Z million)

Particulars	As of June 30, 2025
	Amount
Expenses on exploration in Sri Lanka*	61.67

*The entire amount was utilizedfrom the capital accounts of our Subsidiaries in Sri Lanka, i.e., Midwest Heavy Sands (Private) Limited and Trinco Mineral Sands Private Limited.

Rutile a naturally occurring titanium dioxide which finds application in production of welding rods and titanium sponge.

(Source: CRISIL Report)

In addition to the above, Heavy Mineral Sands contain a minor fraction of valuable minerals such as Monazite which host a wide variety of rare earth elements. We are exploring monetization of this mineral as it is key to producing high-quality strong magnets, which are found in various electronics, wind turbines and electric vehicles. (Source: CRISIL Report)

Zircon is a mineral used in ceramics, abrasives, refractories and jet engines. (Source: CRISIL Report)

Garnet is a silicate mineral which finds applications such as abrasives, gemstones and ceramics. (Source: CRISIL Report)

SIGNIFICANT FACTORS AFFECTING OUR FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our results of operations and financial condition are subject to various risks and uncertainties, including those discussed in "Risk Factors" on page 32. Set out below are certain important factors that have affected, and which may continue to affect, our results of operations and financial condition.

General economic conditions in key markets

Our results of operations are generally affected by the overall global economic condition and economic conditions in the key geographical markets that we cater to, namely, India and China. Any change in macro-economic conditions in these markets, including changes in interest rates, inflationary pressures, government policies or taxation and political, economic or other developments, have affected, and will continue to affect, our operating results and future growth. Our Natural Stone Segment, which accounted for 94.06%, 95,97%, 96.09% and 96.16% of our revenue from operations in the three- month period ended June 30, 2025 and the Fiscals 2025, 2024 and 2023, respectively, produces dressed Granite blocks and Granite slabs, which are primarily used as construction materials in the commercial and residential real estate sectors. Stronger macro-economic conditions generally support higher levels of commercial and residential real estate demand and spending while weaker macro-economic conditions tend to adversely affect demand for commercial and residential real estate.Therefore, stable economic conditions and growing investment in real estate leads to an increase in the demand for Granite, and conversely, instability or unfavorable economic conditions lead to a reduction in demand for Granite.

Accordingly, the demand for Dimensional Stone Granite blocks and slabs, which was the largest contributor to our revenue from operations in the three-month period ended June 30, 2025 and Fiscals 2025, 2024 and 2023, is dependent on the level of economic activity and macro-economic conditions globally and in our key geographical markets.

Demandfor, and prevailing price of, dressed Granite blocks

Our revenue from operations being primarily dependent on the sale of Dimensional Stone Granite in our Natural Stone Segment, the price and demand for Granite in global markets and key markets, such as India and China, affects the results of our operations and our financial condition. The market for dressed Granite blocks is highly commoditized and accordingly, the pricing of our products influences the demand for our products. While we typically enter into long-term supply arrangements with our customers under the terms of which, customers are required to purchase a minimum quantity of Granite from us during a quarter, the price at which the products are sold to the customer is not fixed for the duration of the contract and is mutually decided on a month-to-month basis, based on the quality of the Granite and the prevailing market prices. Therefore, trends in the pricing for dressed Granite blocks, particularly those of Black Galaxy Granite, the sale of which accounted for 69.77%, 69.55%, 72.35% and 70.46% of our revenue from operations during the three-month period ended June 30, 2025 and Fiscals 2025, 2024 and 2023, respectively, materially impact the results of our operations.

In addition, the production levels at our Mines are dependent on the prevailing price for dressed Granite blocks. Mechanized mining of Granite is cost intensive with costs incurred on the procurement and operation of specialized machinery, employment of trained labor and dressing and transporting Granite blocks from the Mines. Accordingly, the price at which dressed Granite blocks can be sold determines the portion of our proven Granite ore reserves that can be viably and profitably extracted, which in turn affects our revenue recognition and the results of our operations. For instance, we operate two Mines which yield tan brown Granite. While we are able to operate these Mines, based on our assessment of demand and the pricing of tan brown Granite, the extraction and production of tan brown Granite at these mines is not currently viable.

Production at our Mines

Our results of operations are dependent on the sale of Granite to our customers, which in turn depends on the production levels at, and the performance of, our Mines. We currently operate 20 Mines in the Indian states of Telangana and Andhra Pradesh, primarily producing Black Galaxy and Absolute Black varieties of Granite.

Set out below are the details of our production of Black Galaxy Granite and Absolute Black Granite during the three-month period ended June 30, 2025 and Fiscals 2025, 2024 and 2023:

Product		Total Production (in cubic meters) (A)
	Three-month period ended June 30, 2025	Fiscal 2025	Fiscal 2024	Fiscal 2023
Black Galaxy Granite	14,963	66,548	57,519	51,672
Absolute Black Granite	8,317	38,120	40,105	42,820
Product		Total Production (in cubic meters) (A)
	Three-month period ended June 30, 2025	Fiscal 2025	Fiscal 2024	Fiscal 2023
Total	23,280	104,668	97,624	94,492

Production levels at our Mines depend on the availability of skilled labor, weather conditions, operating status and availability of critical machinery and maintenance of our regulatory approvals for operating our Mines. Any disruption of production at our Mines, including as a result of unavailability of labor, adverse weather conditions, breakdown of critical machinery or failure to maintain or renew regulatory approvals, affects our production levels and as a result, our ability to generate revenue.

Our ability to optimize operating expenses and yield

Mechanized mining is a cost-intensive business and involves the use of heavy machinery and equipment. In addition to the procurement of such machinery and equipment, we incur expenditure on their (i) maintenance in the form of procurement of stores, spare parts and repairs and (ii) operation in the form of fuel expenses and energy costs. Given that Dimensional Stone Granite is a price-competitive business, such costs cannot be entirely passed on to our customers and therefore, our ability to maintain or improve the profitability of our operations is dependent on improving the efficiency of our operations.

The table below sets out our key operating expenses for the periods indicated.

(t million, except % data)

Particulars	Three-month period ended June 30, 2025		Fiscal 2025		Fiscal 2024		Fiscal 2023
	Amount	% of Revenue from operations	Amount	% of Revenue from operations	Amount	% of Revenue from operations	Amount	% of Revenue from operations
Consumption of stores and spare parts	157.74	11.09	756.03	12.07	753.55	12.87	909.18	18.09
Block Cutting Expenses1)	66.36	4.66	301.03	4.81	280.70	4.79	335.17	6.67
Repairs and maintenance	88.12	6.19	433.42	6.92	379.83	6.49	357.67	7.12
Carriage & Freight	156.05	10.97	409.60	6.54	279.88	4.78	283.27	5.64

Block cutting expenses include raw block cutting expenses and wire saw cutting expenses.

Further, when a rough Granite block is extracted from the deposit in the Mine, only a portion of this extracted block can be converted into Dimensional Stone Granite. The yield, ie., the proportion of the rough block which is converted into Dimensional Stone, is another major determinant of the efficiency of our mining operations. To maintain and improve the operating efficiency of our operations, we have undertaken and are proposing to undertake various cost reduction and yield improvement measures. For further information of our cost reduction and yield improvement measures, see " Our Business- Our Strategies-Improve efficiency and sustainability of our operations" on page 258.

As we expand the size and scope of our business, the profitability of our operations will depend on our ability to optimize our operational efficiency by reducing our operating expenses and improving the yield from our operations.

Fluctuations in exchange rates

While we prepare our financial statements in Indian rupees and the Indian rupee is our functional currency, we transact a portion of our business in other currencies, primarily the U.S. Dollar, and are, accordingly, exposed to translation and transaction foreign exchange risks. The table below sets out the details of our revenue from operations undertaken in foreign currencies for the periods indicated.

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(t million, except % data)

Particulars	Three-month period ended June 30, 2025		Fiscal 2025		Fiscal 2024		Fiscal 2023
	Amount	% of revenue from operations	Amount	% of revenue from operations	Amount	% of revenue from operations	Amount	% of revenue from operations
Revenue earned in INR	517.06	36.34	2,694.49	43.03	2,198.73	37.55	1,986.73	39.54
INR value of revenue earned in foreign currency	905.59	63.66	3,567.33	56.97	3,657.51	62.46	3,038.44	60.46
Revenue from operations	1,422.65	100.00	6,261.82	100.00	5,856.24	100.00	5,025.17	100.00

With respect to any revenue accrued or expenses incurred in a foreign currency, changes in the prevailing currency exchange rates may affect our results of operations. While we enter into forward contracts to mitigate the risk of adverse changes in exchange rates, to the extent our foreign currency exposure is not covered through forward contracts, to the extent our foreign currency exposure is not covered through forward contracts, we will be subject to foreign exchange fluctuation and this may affect our results of operations. Our unhedged net receivables for the three-month period ended June 30, 2025 and Fiscal Years 2025, 2024 and 2023 were Rs. 1535.8 million, Rs. 1,423.23million, Rs.1,003.61 million and Rs.894.54 million, which constituted 26.99%(annualized), 22.37%, 17.14% and 17.80% of our revenue from operations during such period, respectively. Also see "Risk Factors—Exchange rate fluctuations may adversely affect our business, financial conditions, cash flows and results of operationson page 50.

Regulatory Developments

The Union Government and State Governments through various regulatory authorities regulate or are involved in the development of regulations for various matters connected with the Granite mining industry in India, including: the grant and renewal of exploration rights and mining rights; acquisition of land and surface rights; environmental clearances, including forest land related approvals; approval of mining plans; safety and health standards; labor matters; and royalty, cess and other duties, and taxes payable to the relevant Governments on the material extracted from Mines. The compliance costs, liabilities and requirements associated with existing and any new policies and statutory and regulatory requirements can have a impact on our operations. See "Risk Factors—Our business operations are subject to regulation. We are required to obtain, renew or maintain statutory and regulatory permits, licenses and approvals to operate our business, and we may experience delays in obtaining, renewing or maintaining such licenses or permits or be unable to obtain such licenses and approvals due to litigation and change in regulatory landscape on page 34.

The mining industry is under increasing scrutiny from governments and civil society due to the impact of mining activities on the environment. As a result, mining activities in India are subject to governmental regulation. While we have undertaken various measures to improve the sustainability of our operations and mitigate their impact on the environment, decisions by the relevant Governments on the regulatory framework for mining operations have effect on the results of our operations.

Royalty, Seignorage and Cess Fees

Statutory levies by Governments in the form of royalty, seignorage and cess fees are a significant component of our total expenses. Royalty, seignorage and cess fees are payable to the relevant State Government at specified rates on the Granite produced at our Mines. While these royalties are borne by our customers when Granite blocks are sold to domestic customers, for the sale of Granite blocks to our export customers, the contracts are priced on a free-on-board basis, and accordingly, the costs for royalties, seignorage and cess fees are required to be borne by us. While the royalties, seignorage and cess fees payable to the relevant Government is factored into the price at which our Granite blocks are sold to customers, we may not be able to entirely pass on the costs of such royalties to our export customers. Accordingly, increases in the royalty and seignorage rates may affect our results of operations to the degree we are unable to pass on such costs to our customers. During the three-month period ended June 30, 2025 and Fiscals 2025, 2024 and 2023, we paid seignorage and cess fees of Rs.247.77 million, Rs.1005.55 million, Rs.1,045.06 million and Rs.953.61 million, which constituted 17.42%, 16.06%, 17.85% and 18.98% respectively, of our revenue from operations during such period.

Capital expenditure and entry into new business segments

We have more than four decades of experience in the natural stone industry in India and in exploration, development and operation of mines, stone processing and fabrication, sales, distribution and marketing of various types of natural stone.

However, we are currently expanding of our operations into new business segments and have incurred, and are proposing to further incur, capital expenditure to facilitate our entry into such new businesses, which have been discussed below:

a. Quartz grit and powder: We currently operate two functional mines which produce Quartz and are in the process of establishing a Quartz Processing Plant in Ongole, Andhra Pradesh in two phases. Phase I of the Quartz Processing Plant was operationalized during the quarter ended September 30, 2025 while Phase II of the Quartz Processing Plant is proposed to be funded through the Net Proceeds. Quartz production in India saw tremendous increase over Fiscals 2022-2024, logging a CAGR of 17.8% to 4,989 KT in fiscal 2024 from 3,595 KT in Fiscal 2025. The increase is mainly derived by higher exports and domestic demand for quartz and its products in glass, foundry, ferroalloys, refractory industries and building materials industry. The demand for quartz and quartzite has been increasing over the years to cater to the requirement of refractories, glass and engineered stone industries. The quartz industry is projected to register a CAGR of 8-8.5% and the production is expected to reach 6,8246,983 KT in Fiscal 2030 from the 2025 level. (Source: CRISIL Report)

b. Marble and Quartzite: We presently operate one functional Mine each yielding grey Marble and Quartzite. Marble is a premium natural stone which is used in various construction projects while Quartzite is emerging as an alternative to imported Quartzite. We have entered into arrangements with Marble and Quartzite processors who will process the Marble and Quartzite extracted from our Mines on a contract basis, enabling them to be distributed to the final end consumer.

c. Mining of heavy mineral sands: We are venturing into the business of exploring, mining and processing heavy mineral sands, principally for extraction of Titanium bearing ores. We have obtained four mining concessions for conducting exploration in Sri Lanka and have also identified additional areas for exploration. In addition, we propose to establish a mineral sand processing facility in Sri Lanka to process heavy mineral sand. The global consumption for titanium minerals (feedstock) increased from 8.48 MT (million tons) in 2021 to 8.50 MT in 2024. About 88% (~7.5 MT) of titanium feedstock is used in the manufacturing of white titanium dioxide pigment, followed by titanium metals (8%; ~0.7 MT) during 2023 and welding applications and others (4%; 0.3 MT). During 2023-2029, the global market of Titanium feedstock is expected to increase at a CAGR of 3.1 -3.5% to reach ~10.52-10.8 MT. (Source: CRISIL Report)

Our results of operations and financial condition will be dependent on our ability to operationalized and generate revenue from the proposed facilities and business segments. Delays or failure by our Company to generate revenue from these proposed business segments in a timely manner or efficiently, would have a significant effect on the results of our operations and our financial condition. Also see, "Risk Factors-We have entered into and propose to enter into new business segments and our inability to establish ourselves in such nascent business segments could adversely affect, our business condition, results of operations and cash flows." on page 37.

CHANGES IN ACCOUNTING POLICIES

There have been no changes in the accounting policies of the Company during the three-month period ended June 30, 2025 and Fiscals 2025, 2024 and 2023.

NON-GAAP FINANCIAL MEASURES

We use certain supplemental Non-GAAP Measures and certain operational performance indicators to review and analyze our financial and operating performance from period to period, to evaluate our business, and for forecasting purposes. Although these Non-GAAP Measures, financial and operational performance indicators and other industry measures are not a measure of performance calculated in accordance with applicable accounting standards, our management believes that they are useful to an investor in evaluating us because they are widely used measures to evaluate a companys operating and financial performance. Further, our management believes that when taken collectively with financial measures prepared in accordance with Ind AS, these Non-GAAP Measures, financial and operational performance indicators and other industry measures may be helpful to investors because they provide an additional tool for investors to use in evaluating our ongoing results and trends. Presentation of these Non-GAAP Measures, financial and operational performance indicators and other industry measures should not be considered in isolation from, or as a substitute for, analysis of our historical financial performance, as reported and presented in our Restated Consolidated Financial Statements set out in this Red Herring Prospectus.

These Non-GAAP Measures, financial and operational performance indicators and other industry measures are not defined under, or presented in accordance with, Ind AS and have limitations as analytical tools which indicate, among other things, that they do not reflect our cash expenditures or future requirements for capital expenditure or contractual commitments;

changes in, or cash requirements for, our working capital needs; and the finance cost, or cash requirements. Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and these measures do not reflect any cash requirements for such replacements. These Non-GAAP Measures, financial and operational performance indicators and other industry measures may differ from similar titled information used by other companies, including peer companies, who may calculate such information differently and hence their comparability with those used by us may be limited. Therefore, these Non-GAAP Measures, financial and operational performance indicators and other industry measures should not be viewed as substitutes for performance or profitability measures under Ind AS or as indicators of our operating performance, financial condition, cash flows, liquidity or profitability.

Set out below are definitions of, and reconciliation to GAAP measures pertaining to, certain key Non-GAAP Measures presented in this Red Herring Prospectus, along with a brief explanation of their calculation. Also see "Risk Factors—This Red Herring Prospectus includes certain Non-GAAP Measures, financial and operational performance indicators and other industry measures related to our operations and financial performance. The Non-GAAP Measures and industry measures may vary from any standard methodology that is applicable across the Indian mining industry and, therefore, may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies." on page 59.

EBITDA, EBITDA Margin and Net Profit Margin

"EBITDA" is defined as earnings before interest, taxes, depreciation and amortization. "EBITDA Margin" is a profitability ratio we use to calculate the percentage of profit we generate from our operations; it is defined as our EBITDA during a given period as a percentage of revenue from operations during that period. " Net Profit Margin" is a measure of how much net profit is generated as a percentage of revenue and is calculated by dividing our net profit for the year by revenue from operations during that period and is expressed as a percentage. The table below reconciles our profit for the year to EBITDA, for the periods indicated, and sets out our EBITDA Margin and Net Profit Margin, for the periods indicated.

(f million, unless otherwise specified)

Particulars	Three-month period ended June 30, 2025	Fiscal
		2025	2024	2023
Profit/ (loss) for the year (A)	243.80	1,332.99	1,003.24	544.36
Add:
Finance cost, net	37.03	109.31	91.64	90.61
Income tax expense	84.87	447.07	374.81	242.63
Depreciation and amortization expense	66.00	255.91	221.80	215.43
Less:
Other Income	42.00	169.60	177.06	197.16
EBITDA (C)	389.70	1,717.80#	1,514.43	895.87
Revenue from operations (D)	1,422.65	6,261.82	5,856.24	5,025.17
EBITDA Margin (C/D) (%)*	27.39	27.43#	25.86	17.83
Net Profit Margin (A/D) (%)*	17.14	17.17#	17.13	10.83

* EBITDA Margin and Net Profit Margin are calculated on the revenue from operations.

# EBITDA, EBITDA Margin (%) and Net Profit Margin (%) are calculated after excluding exceptional item of f257.88 million.

Return on Capital Employed

Return on capital employed ("RoCE") is calculated by dividing our earnings before interest ("EBIT") and taxes during a given period by Capital Employed (ie., total debt plus net worth less cash and cash equivalents) during that period. The table below sets out the reconciliation of our RoCE to our EBIT, for the periods indicated.

(f million)

Particulars	Three-month period ended June 30, 2025	As of, and for the year ended, March 31
		2025	2024	2023
(A) EBIT	323.70	1,461.89	1,292.63	680.44
(B) a) Total debt	2,701.10	2,366.10	1,204.83	1,490.76
b) Net worth	5,770.32	5,536.91	4,219.29	3,349.24
c) Cash and cash equivalents	191.65	142.25	254.58	110.16
(C) Capital Employed (a+b-c)	8,279.77	7,760.76	5,169.54	4,729.84
RoCE (A/C) (%)	3.91*	18.84	25.00	14.39

*Not Annualized

Return on Equity

Return on equity ("RoE") is equal to profit for the year divided by the total equity during that year and is expressed as a percentage. The table below sets out the reconciliation of our RoE to our profit for the year, for the periods indicated.

(t million, except % data)

Particulars	Three-month period ended June 30, 2025	As of, and for the year ended, March 31
		2025	2024	2023
Profit for the year (A)	243.80	1,075.11#	1,003.24	544.36
Total equity/ net worth (B)	5,770.32	5,536.91	4,219.29	3,349.24
RoE (A/B) (%)	4.23*	19.42	23.78	16.25

*Not Annualized

# PAT after excluding exceptional item of t257.88 million

Debt to Equity Ratio

We monitor our capital and financial leverage levels using the Debt to Equity ratio. We calculate Debt to Equity ratio by dividing the Debt (i.e., borrowings (current and non-current)) by total equity. The table below sets out the calculation of our Debt to Equity ratio, as of the dates indicated below.

(t million, unless otherwise specified)

Particulars	Three-month period ended June 30, 2025	As of March 31,
		2025	2024	2023
Total Debt (A)	2,701.10	2,366.10	1,204.83	1,490.76
Net worth (B)	5770.32	5536.91	4,219.29	3,349.24
Debt to Equity Ratio (A)/(B)	0.47	0.43	0.29	0.45

Current Ratio

"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 total current assets by the total current liabilities.

The table below sets out details of our Current Ratio, as of the dates indicated below.

(t million, unless otherwise specified)

Particulars	Three-month period ended June 30, 2025	As of March 31,
		2025	2024	2023
Total current assets	3,831.01	4,225.69	2,925.84	2,299.50
Total current liabilities	2,488.38	2,634.37	1,761.31	1,758.96
Current Ratio	1.54	1.60	1.68	1.32

Working Capital Cycle

Working capital cycle describes the number of days it takes for us to convert our working capital into revenue and is calculated by deducting trade payable days from trade receivable days. Trade receivables days have been calculated as trade receivables divided by revenue from operations multiplied by 365 days. Trade payables days have been calculated as trade payables divided by operational expenses multiplied by 365 days. Inventory days have been calculated as inventory divided by revenue from operations multiplied by 365 days. The table below sets out details of our working capital days, as of the periods indicated below.

(t million, unless otherwise specified)

Particulars	Three-month period ended June 30, 2025	As at, and for the year ended, March 31,
		2025	2024	2023
Revenue from operations (A)	1,422.65	6,261.82	5,856.24	5,025.17
Operational Expenses (B)(1)	919.67	4,034.48	3,926.82	3,740.15
Trade receivables (C)	2,336.87	2,399.65	1,190.69	962.46
Trade payables (D)	362.91	499.51	215.79	205.01
Inventory (E)	288.30	276.12	371.99	574.18
Trade receivable days {(C/A)*365}	149*	140	74	70
Trade payable days {(D/B)*365}	36*	45	20	20
Inventory Days {(E/A)*365}	29*	25	35	56
Working Capital Days	142*	120	89	106

(1 Operational expenses include cost of goodsproduced/sold, general and administrative expenses and selling and distributive expenses. *Not annualized

KEY OPERATIONAL PERFORMANCE INDICATORS

The tables below set forth certain key operational performance indicators as at and for the periods indicated.

Particulars	Three-month period ended June 30, 2025	As at and for the Fiscal Year ended March 31,
		2025	2024 2023
Granite blocks
Produced (in cubic meters)
- Black Galaxy Granite	14,963	66,548	57,519	51,672
- Absolute Black	8,317	38,120	40,105	42,820
Total Production	23,280	104,668	97,624	94,492
Sold (in cubic meters)
- Black Galaxy Granite	14,587	66,726	61,690	50,245
- Absolute Black	8,712	42,166	41,804	41,630
Total Sale	23,299	108,892	103,494	91,875
Diamond Wire
Produced (in meters)	57,335	157,544	106,366	105,928
Sold (in meters)	65,757	166,137	93,015	104,141
Capacity Utilization (in %)	79.63	78.77	64.46	73.05

MATERIAL ACCOUNTING POLICIES

The preparation of our financial statements in conformity with Ind AS requires our management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, the accompanying disclosures and the disclosure of contingent liabilities. Although these estimates are based upon managements best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods. Changes in estimates are reflected in our financial statements in the period in which changes are made and if material, their effects are disclosed in the notes to our financial statements.

Key accounting policies of our Company and our Subsidiaries (collectively, the "Group") that are relevant and specific to our business and operations are described below. Our significant accounting policies are described in the notes to the Restated Consolidated Financial Statements in "Restated Consolidated Financial Statements" on page 340.

(a) Property, plant and equipment

Items of property, plant and equipment are initially recognised at cost. As well as the purchase price, cost includes directly attributable costs and the estimated present value of any future unavoidable costs of dismantling and removing items.

Land is not depreciated. Depreciation on assets under construction does not commence until they are complete and available for use. Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives is as follows:

Buildings - 5 to 60 years Plant & Machinery - 10 to 15 years Mining Equipment - 8 years Vehicles - 8 to 10 years Computers - 3 to 6 years

The Group reviews the estimated residual values and expected useful lives of assets at least annually. In particular, the Group considers the impact of health, safety and environmental legislation in its assessment of expected useful lives and estimated residual values. Furthermore, the Group considers climate related matters, including physical and transition risks. Specifically, the Group determines whether climate related legislation and regulations might impact either the useful life or residual values.

(b) Leases Identifying leases

The Group accounts for a contract, or a portion of a contract, as a lease when it conveys the right to use an asset for a period of time in exchange for consideration. Leases are those contracts that satisfy the following criteria:

a. There is an identified asset;

b. The Group obtains substantially all the economic benefits from use of the asset; and

c. The Group has the right to direct use of the asset.

The Group considers whether the supplier has substantive substitution rights. If the supplier does have those rights, the contract is not identified as giving rise to a lease.

In determining whether the Group obtains substantially all the economic benefits from use of the asset, the Group considers only the economic benefits that arise use of the asset, not those incidental to legal ownership or other potential benefits.

In determining whether the Group has the right to direct use of the asset, the Group considers whether it directs how and for what purpose the asset is used throughout the period of use. If there are no significant decisions to be made because they are pre-determined due to the nature of the asset, the Group considers whether it was involved in the design of the asset in a way that predetermines how and for what purpose the asset will be used throughout the period of use. If the contract or portion of a contract does not satisfy these criteria, the Group applies other applicable Ind ASs rather than Ind AS 116.

(c) Intangible assets

Internally generated intangible assets (development costs)

Expenditure on internally developed products is capitalised if it can be demonstrated that:

(i) it is technically feasible to develop the product for it to be sold;

(ii) adequate resources are available to complete the development

(iii) there is an intention to complete and sell the product

(iv) the Group is able to sell the product

(v) sale of the product will generate future economic benefits; and

(vi) expenditure on the project can be measured reliably.

Capitalised development costs are amortised over the periods the Group expects to benefit from selling the products developed. The amortisation expense is included within the depreciation and amortisation expense in the restated consolidated statement of profit and loss as incurred.

Development expenditure not satisfying the above criteria and expenditure on the research phase of internal projects are recognised in the restated consolidated statement of profit and loss as incurred.

(d) Goodwill

Goodwill represents the excess of the cost of a business combination over the Groups interest in the fair value of identifiable assets, liabilities and contingent liabilities acquired.

Cost comprises the fair value of assets given, liabilities assumed and equity instruments issued, plus the amount of any non-controlling interests in the acquiree plus, if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree. Contingent consideration is included in cost at its acquisition date fair value and, in the case of contingent consideration classified as a financial liability, remeasured subsequently through profit or loss.

Goodwill is capitalised as an intangible asset with any impairment in carrying value being charged to the profit and loss. Where the fair value of identifiable assets, liabilities and contingent liabilities exceed the fair value of consideration paid, the excess is credited in full to the other comprehensive income and accumulated in equity as capital reserve on the acquisition date.

(e) Non-controlling interests

The Group recognise any non-controlling interest in the acquiree which is a present ownership interest and entitles its holders to a proportionate share of the entitys net assets in the event of liquidation at the present ownership instruments proportionate share in the recognised amounts of the acquirees identifiable net assets.

The total comprehensive income of non-wholly owned subsidiaries is attributed to owners of the parent and to the noncontrolling interests in proportion to their relative ownership interests.

(f) Joint arrangements

The Group is a party to a joint arrangement when there is a contractual arrangement that confers joint control over the relevant activities of the arrangement to the Group and at least one other party. Joint control is assessed under the same principles as control over subsidiaries.

The Group classifies its interests in joint arrangements as either:

- Joint ventures: where the group has rights to only the net assets of the joint arrangement

- Joint operations: where the group has both the rights to assets and obligations for the liabilities of the joint arrangement

In assessing the classification of interests in joint arrangements, the Group considers:

- The structure of the joint arrangement

- The legal form of joint arrangements structured through a separate vehicle

- The contractual terms of the joint arrangement agreement

- Any other facts and circumstances (including any other contractual arrangements)

The Group accounts for its interests in joint ventures using the equity method

Any premium paid for an investment in a joint venture above the fair value of the Groups share of the identifiable assets, liabilities and contingent liabilities acquired is capitalised and included in the carrying amount of the investment in joint venture. Where there is objective evidence that the investment in a joint venture has been impaired the carrying amount of the investment is tested for impairment in the same way as other non-financial assets.

The Group accounts for its interests in joint operations by recognising its share of assets, liabilities, revenues and expenses in accordance with its contractually conferred rights and obligations. In accordance with Ind AS 111 Joint Arrangements, the Group is required to apply all of the principles of Ind AS 103 Business Combinations when it acquires an interest in a joint operation that constitutes a business as defined by Ind AS 103.

(g) Impairment of non-financial assets (excluding inventories, investment properties and deferred tax assets)

Impairment tests on goodwill and other intangible assets with indefinite useful economic lives are undertaken annually at the financial year end. Other non-financial assets are subject to impairment tests whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Where the carrying value of an asset exceeds its recoverable amount (i.e. the higher of value in use and fair value less costs to sell), the asset is written down accordingly.

Impairment charges are included in profit or loss, except to the extent they reverse gains previously recognised in other comprehensive income. An impairment loss recognised for goodwill is not reversed.

(h) Inventories

Inventories are initially recognised at cost, and subsequently at the lower of cost and net realisable value. Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

Weighted average cost is used to determine the cost of ordinarily interchangeable items.

(i) Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less. Bank overdrafts are shown within borrowings in current liabilities on the restated consolidated balance sheet.

(j) Financial assets

The Group classifies its financial assets into one of the categories discussed below, depending on the purpose for which the asset was acquired. Other than financial assets in a qualifying hedging relationship, the Groups accounting policy for each category is as follows:

Fair value through profit or loss

This category comprises in-the-money derivatives and out-of-money derivatives where the time value offsets the negative intrinsic value (see "Financial liabilities" section for out-of-money derivatives classified as liabilities). They are carried in the statement of balance sheet at fair value with changes in fair value recognised in the restated consolidated statement of profit and loss in the other income or expense line. Other than derivative financial instruments which are not designated as hedging instruments, the Group does not have any assets held for trading nor does it voluntarily classify any financial assets as being at fair value through profit or loss.

Amortised cost

These assets arise principally from the provision of goods and services to customers (eg trade receivables), but also incorporate other types of financial assets where the objective is to hold these assets in order to collect contractual cash flows and the contractual cash flows are solely payments of principal and interest. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment.

Impairment provisions for trade receivables are recognised based on the simplified approach within Ind AS 109 using a provision matrix in the determination of the lifetime expected credit losses. During this process the probability of the nonpayment of the trade receivables is assessed. This probability is then multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss for the trade receivables. For trade receivables, which are reported net, such provisions are recorded in a separate provision account with the loss being recognised in profit or loss. On confirmation that the trade receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision.

Impairment provisions for receivables from related parties and loans to related parties are recognised based on a forward looking expected credit loss model. The methodology used to determine the amount of the provision is based on whether there has been a significant increase in credit risk since initial recognition of the financial asset. For those where the credit risk has not increased significantly since initial recognition of the financial asset, twelve month expected credit losses along with gross interest income are recognised. For those for which credit risk has increased significantly, lifetime expected credit losses along with the gross interest income are recognised. For those that are determined to be credit impaired, lifetime expected credit losses along with interest income on a net basis are recognised.

The Groups financial assets measured at amortised cost comprise trade and other receivables and cash and cash equivalents in the restated consolidated statement of balance sheet.

(k) Financial liabilities

The Group classifies its financial liabilities into one of two categories, depending on the purpose for which the liability was acquired.

Other than financial liabilities in a qualifying hedging relationship (see below), the Groups accounting policy for each category is as follows:

Fair value through profit or loss

This category comprises out-of-the-money derivatives where the time value does not offset the negative intrinsic value (see "Financial assets" for in-the-money derivatives and out-of-money derivatives where the time value offsets the negative intrinsic value). They are carried in the restated consolidated balance sheet at fair value with changes in fair value recognised in the profit and loss. The Group does not hold or issue derivative instruments for speculative purposes, but for hedging purposes. Other than these derivative financial instruments, the Group does not have any liabilities held for trading nor has it designated any financial liabilities as being at fair value through profit or loss.

Other financial liabilities

Bank borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest-bearing liabilities are subsequently measured at amortised cost using the effective interest rate method, which ensures that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried in the restated consolidated balance sheet. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Trade payables and other short-term monetary liabilities, which are initially recognised at fair value, are subsequently carried at amortised cost using the effective interest method.

(l) Dividends

Dividends are recognised when they become legally payable. In the case of interim dividends to equity shareholders, this is when declared by the directors. In the case of final dividends, this is when approved by the shareholders at the annual general meeting.

(m) Provisions

The Group has recognised provisions for liabilities of uncertain timing or amount including those for leasehold dilapidations and legal disputes. The provision is measured at the best estimate of the expenditure required to settle the obligation at the reporting date, discounted at a pre-tax rate reflecting current market assessments of the time value of money and risks specific to the liability.

(n) Revenue from contracts with customers Performance obligations and timing of revenue recognition

The majority of the Groups revenue is derived from selling goods with revenue recognised at a point in time when control of the goods has transferred to the customer. This is generally when the goods are delivered to the customer. However, for export sales, control might also be transferred when delivered either to the port of departure or port of arrival, depending on the specific terms of the contract with a customer. There is limited judgement needed in identifying the point control passes: once physical delivery of the products to the agreed location has occurred, the group no longer has physical possession, usually will have a present right to payment (as a single payment on delivery) and retains none of the significant risks and rewards of the goods in question.

Determining the transaction price

Most of the groups revenue is derived from fixed price contracts and therefore the amount of revenue to be earned from each contract is determined by reference to those fixed prices.

(o) Foreign currencies Functional and presentation currency

Items included in the restated consolidated financial statements are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency). The restated consolidated financial statements are presented in Indian rupee (INR), which is the Companys functional and Groups presentation currency.

Transactions and balances

On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the exchange rate between the functional currency and the foreign currency at the date of the transaction. Gains/losses arising out of fluctuation in foreign exchange rates between the transaction date and settlement date are recognised in the profit and loss.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date and the exchange differences are recognised in the profit and loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated

using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of nonmonetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).

(p) Foreign currencies (continued) Group companies

The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

• assets and liabilities are translated at the closing rate at the date of that balance sheet

• income and expenses are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions), and

• All resulting exchange differences are recognised in other comprehensive income

On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings and other financial instruments designated as hedges of such investments, are recognised in other comprehensive income. When a foreign operation is sold, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale.

Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate.

(q) Borrowing costs

Borrowing costs are capitalised, net of interest received on cash drawn down yet to be expended when they are directly attributable to the acquisition, contribution or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale.

(r) Employee benefits Defined contribution schemes

Contributions to defined contribution pension schemes are charged to the profit and loss in the year to which they relate.

Defined benefit schemes

Defined benefit scheme surpluses and deficits are measured at:

(i) The fair value of plan assets at the reporting date; less

(ii) Plan liabilities calculated using the projected unit credit method discounted to its present value using yields available on government bonds that have maturity dates approximating to the terms of the liabilities and are denominated in the same currency as the post- employment benefit obligations; less

(iii) The effect of minimum funding requirements agreed with scheme trustees

Remeasurements of the net defined obligation are recognised directly within equity.

The remeasurements include:

(i) Actuarial gains and losses

(ii) Return on plan assets (interest exclusive)

(iii) Any asset ceiling effects (interest exclusive)

Service costs are recognised in profit or loss, and include current and past service costs as well as gains and losses on curtailments.

Net interest expense (income) is recognised in profit or loss, and is calculated by applying the discount rate used to measure the defined benefit obligation (asset) at the beginning of the annual period to the balance of the net defined benefit obligation (asset), considering the effects of contributions and benefit payments during the period.

Gains or losses arising from changes to scheme benefits or scheme curtailment are recognised immediately in profit or loss. Settlements of defined benefit schemes are recognised in the period in which the settlement occurs.

Other long-term service benefits

Other employee benefits that are expected to be settled wholly within 12 months after the end of the reporting period are presented as current liabilities.

Other employee benefits that are not expected to be settled wholly within 12 months after the end of the reporting period are presented as non-current liabilities and calculated using the projected unit credit method and then discounted using yields available on government bonds that have maturity dates approximating to the expected remaining period to settlement and are denominated in the same currency as the post-employment benefit obligations.

(s) Deferred tax

Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the restated consolidated balance sheet differs from its tax base, except for differences arising on:

(i) The initial recognition of goodwill

(ii) The initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction affects neither accounting or taxable profit, and

(iii) Investments in subsidiaries and joint arrangements where the Group is able to control the timing of the reversal of the difference and it is probable that the difference will not reverse in the foreseeable future.

Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the difference can be utilised.

The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the reporting date and are expected to apply when the deferred tax liabilities/(assets) are settled/(recovered).

STATUTORY AUDITORS QUALIFICATIONS OR OBSERVATIONS

Other than the qualifications and other matter paragraphs included in the Restated Consolidated Financial Statements on page 340, there are no qualifications or observations included in the audited consolidated financial statements as of, and for the three-month period ended June 30, 2025 and as of, and for the financial years ended, March 31, 2025, March 31, 2024 and March 31, 2023.

Set out below are details of remarks by the statutory auditor in their audit reports on the consolidated financial statements as of, and for the three-month period ended June 30, 2025 and as of, and for the financial years ended, March 31, 2025, March 31, 2024 and March 31, 2023.

A. Consolidated financial statements as of, and for the three-months ended, June 30, 2025 Nil.

B. Consolidated financial statements as of, and for the financial year ended, March 31, 2025 Midwest Limited

(i) (c)According to the information and explanations given to us, the title deeds of immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in the standalone financial statements, are held in the name of the Company, except for the immovable properties acquired during amalgamation/merger in earlier year. As explained to us, registration of title deeds are in progress in respect of immovable properties acquired during the amalgamation/merger in the earlier years

Description of Properties	Gross Carrying value*	held in the name of	Whether promoter, director or their relative or employee	Period held	Reason for not being held in the name of the Company
	(Rs. in Millions)
Free hold Land	1.61	Subhiksha Agro Farms Pvt Ltd	No	From FY 2013-14	For certain properties acquired through amalgamation/ merger, the name change in the name of the Company is pending
	12.83	Reliance Granite Pvt Ltd	No
	0.18	Ind Natali Granite Limited	No
	13.44	Opusasia Technologies Pvt Ltd	No
Total(a)	28.06

iii(e)According to the information explanation provided to us, the loans or advances in the nature of loan granted has fallen due during the year. The Company has renewed or extended or granted fresh loans to existing parties. The details of the same are as follows:

Name of the Parties	Aggregate amount of loans or advances in the nature of loans granted during the year	Aggregate overdue amount settled by renewal or extension or by fresh loans granted to same parties	Percentage of the aggregate to the total loans or advances in the nature of loans granted during the year
MR Granites	Rs. 76.19 Mn	Rs. 76.47 Mn	100.37%

Andhra Pradesh Granite (Midwest) Private Limited

vii (a) According to the information and explanations given to us and the records examined by us, in our opinion, undisputed statutory dues including goods and services tax, provident fund, employees state insurance, income-tax, sales-tax, duty of customs, duty of excise, value added tax, cess, and other statutory dues have generally been regularly deposited with the appropriate authorities during the year, though there has been a slight delay in a few cases. No undisputed amounts payable in respect of these statutory dues were outstanding as at March 31, 2025, for a period of more than six months from the date they became payable.

Midwest Neostone Private limited

vii (a) According to the records of the Company examined by us, undisputed statutory dues including Income Tax, Goods and Service Tax, Cess, Provident fund and other material statutory dues, whichever is applicable, have been generally regularly deposited with the appropriate authorities though there has been a slight delay in a few cases in depositing undisputed statutory dues. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31, 2025 for a period of more than six months from the date of becoming payable.

As confirmed by the management employees state insurance, sales tax, service tax, duty of excise and Customs and value- added tax are not applicable to the company.

C. Consolidated financial statements as of, and for the financial year ended, March 31, 2024 Midwest Limited

(i) (c) According to the information and explanations given to us, the title deeds of immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in the standalone financial statements, are held in the name of the Company, except for the immovable properties acquired during amalgamation in the earlier year. As explained to us, registration of title deeds are in progress in respect of immovable properties acquired during the amalgamation.

Description of Properties	Gross Carrying value*(Rs in Millions)	Held in the name of	Whether promoter, director or their relative or employee	Period held	Reason for not being held in the name of the Company
Free hold Land	2.72	Subhiksha Agro Farms Pvt Ltd	No	From FY 2013-14	For certain properties acquired through amalgamation/merger, the name change in the name of the Company is pending
	3.93	Yarra Agro Estates Pvt Ltd	No
	12.83	Reliance Granite Pvt Ltd	No
	1.47	Victorian granite Pvt Ltd	No
	0.18	Ind Natali Granite ltd	No
	13.44	Opusasia Technologies Pvt ltd	No
Total(a)	34.57

iii(e) According to the information explanation provided to us, the loans or advances in the nature of loan granted has fallen due during the year. The Company has renewed or extended or granted fresh loans to existing parties. The details of the same are as follows:

Name of the Parties	Aggregate amount of loans or advances in the nature of loans granted during the year	Aggregate overdue amount settled by renewal or extension or by fresh loans granted to same parties	Percentage of the aggregate to the total loans or advances in the nature of loans granted during the year
MR Granites	Rs 55.00 Mn	Rs 29.63 Mn	53.87%

vii(a) "(a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, undisputed statutory dues including Goods and Services tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess, and other statutory dues havegenerally been regularly deposited with the appropriate authorities during the year, though there has been a slight delay in a few cases.

There are no undisputed amounts payable in respect of Goods and Services tax, provident fund, employees state insurance, income-tax, sales-tax, services tax, duty of customs, duty of excise, cess, and other statutory dues in arrears as at March 31, 2024 outstanding for a period of more than six months from the date they became payable."

Andhra Pradesh Granite (Midwest) Private Limited

vii(a) "(a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, undisputed statutory dues including Goods and Services tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess, and other statutory dues havegenerally been regularly deposited with the appropriate authorities during the year, though there has been a slight delay in a few cases.

There are no undisputed amounts payable in respect of Goods and Services tax, provident fund, employees state insurance, income-tax, sales-tax, services tax, duty of customs, duty of excise, cess, and other statutory dues in arrears as at March 31, 2024 outstanding for a period of more than six months from the date they became payable."

Midwest Gold Limited

vii(a) "According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues, including Goods and Services Tax, cess, and other material statutory dues, as applicable, except there has been a slight delay in a few cases of Income tax and

goods and Service tax, with the appropriate authorities. In respect of Professional Tax during the year, the company has not deposited the sum of Rs. 0.003 millions due for 2 months.

As confirmed by the management Provident fund, employee state insurance, sales tax, service tax, duty of excise, and value-added tax are not applicable to the company."

Midwest Neostone Private Limited

vii(a) "According to the records of the Company examined by us, undisputed statutory dues including Income Tax, Goods and Service Tax, Cess and other material statutory dues, whichever is applicable, have been generally regularly deposited with the appropriate authorities though there has been a slight delay in a few cases in depositing undisputed statutory dues. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31, 2024 for a period of more than six months from the date of becoming payable.

As confirmed by the management Provident Fund, employees state insurance, sales tax, service tax, duty of excise and Customs and value-added tax are not applicable to the company"

South Coast Infrastructure Development Company Of Andhra Pradesh Limited

In our opinion and according to the information and explanations given to us, the Company has incurred cash losses amounting to Rs 1.79 millions during the financial year under audit.

D. Consolidated financial statements as of, and for the financial year ended, March 31, 2023

Midwest Granite Private Limited

(i) The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in Note 3 on Property, plant and equipment and Note 4 on Right-of-use assets to the standalone financial statements, are held in the name of the Company, except

Description of Properties	Gross Carrying value * (Rs in Millions)	Held in the name of	Whether promoter, director or their relative or employee	Period held	Reason for not being held in the name of the Company
Free hold Land	2.72	Subhiksha Agro Farms Pvt Ltd	No	From FY 2013-14	For certain properties acquired through amalgamation/merger, the name change in the name of the Company is pending
	3.93	Yarra Agro Estates Pvt Ltd	No
	13.29	Reliance Granite Pvt Ltd	No
	1.47	Victorian granite Pvt Ltd	No
	0.18	Ind Natali Granite ltd	No
	12.14	Opusasia Technologies Pvt ltd	No
Total(a)	33.72

*Gross Carrying value excludes land revaluation on account of Ind AS transition

(ii) In our opinion and according to information and explanation given to us, the Company has been sanctioned working capital limits in excess of rupees Five Crores, in aggregate, from Banks which are secured on the basis of security of current assets. The Company has filed quarterly returns or statements with such banks, The discrepancies of amounts as per books of account and the Quarterly returns submitted to the banks are reported below.

(INR in Millions)

Name of the Bank	HDFC Bank Limited
Aggregate working capital limits sanctioned	756 .20
Nature of Current Asset offered as Security	Primarily on Inventory and trade receivables (Refer the note no 15.2 of the attached financial statements for details)
Quarter ended	June 30, 2022	September 30, 2022	December 31, 2022	March 31, 2023
Amount disclosed as per quarterly return/ statement	453.36	505.74	715.84	1004.02
Amount as per books of account	485.55	518.36	745.23	1002.71
Difference	-32.19	-12.63	-29.39	1.31
Reasons for difference	On Account of pending Reconciliation of customer balances at the time of submitting returns to the Bank.

(iii) According to the information and explanations given to us and on the basis of our examination of the records of the Company. One loan which fell due during the year was extended. Further, no fresh loans were granted to same parties to settle the existing overdue loans/ advances in nature of loan.

Name of the parties	Aggregate amount of loans or advances in the nature of loans granted during the year	Aggregate overdue at year- end and extended with same amount with same party	Percentage* of the aggregate to the total loans or advances in the nature of loans granted during the year
MR Granites	-	25.207	-

(iv)The Company has granted loans or advances in the nature of loans, either repayable on demand or without specifying any terms or period of repayment to Companies and firm. Details given in table below. No loans were granted during the year to promoters.

Aggregate amount of loan given	All Parties	Promoters	Related Parties
-Repayable on demand (A)	-	-
-Without agreement and Repayable on demand to subsidiaries (B)	310.363	-
			310.363
Total (A+B)	310.363	-	310.363
Percentage of loans			100%

(v) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues in respect of provident fund, employees state insurance, income tax, goods and services tax, though there has been a slight delay in a few cases and is regular in depositing undisputed statutory dues.

As confirmed by the management sales tax, service tax, duty of excise value added tax are not applicable to the company

Andhra Pradesh Granite (Midwest) Private Limited

(i) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks on the basis of security of current assets. The Company has filed quarterly returns or statements with such banks, The discrepancies ofamounts as per books of account and the Quarterly returns submitted to the banks are reported below

(Rs In Millions)

Name of the Bank	Kotak Mahindra Bank Limited
Aggregate working capital limits sanctioned	737.112 Millions
Nature of Current Asset offered as Security	Inventory, Trade receivables and other Books Debts (Refer the note no 16.ii of the attached financial statements for details)
Quarter ended	March 31, 2023
Amount disclosed as per quarterly return/ statement	570.326
Amount as per books of account	533.629
Difference	36.697
Reasons for difference	Company is in the process of reconciliation and same will be informing to the banker after the reconciliation

(ii) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues, including Income tax, goods and services Tax, employees state insurance, customs duty, cess and other material statutory dues, as applicable, except there has been a slight delay in a few cases ofprovident fund and Tax Deducted at source with the appropriate authorities.

(iii) As confirmed by the management sales tax, service tax, duty of excise value added tax are not applicable to the company.

Midwest Gold Limited

(i) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues, including Goods and Services Tax, cess, and other material statutory dues, as applicable, except there has been a slight delay in a few cases of Income tax, with the appropriate authorities.

As confirmed by the management Provident fund, employee state insurance, sales tax, service tax, duty of excise, and value-added tax are not applicable to the company.

PRINCIPAL COMPONENTS OF STATEMENT OF PROFIT AND LOSS

Income

Our income comprises revenue from operations and other income.

Revenue from operations

We generate revenue from our operations through (i) the sale of products under our customer contracts and (ii) other operating revenue.

Set forth below is a breakdown of our revenue from operations, for the periods indicated.

(t million, except % data)

	Three-month period ended June 30, 2025		Fiscal 2025		Fiscal 2024		Fiscal 2023
Particulars	Amount	Percentage of total	Amount	Percentage of total	Amount	Percentage of total	Amount	Percentage of total
		revenue		revenue		revenue		revenue
Revenue from contracts with customers
Sale of products	1,395.41	98.09	6,219.14	99.32	5,761.07	98.37	4,973.31	98.96
Sale of traded goods	22.49	1.58	16.29	0.26	89.84	1.53	40.45	0.80
Other operating revenue
Scrap sales	4.75	0.33	26.39	0.42	5.29	0.09	11.36	0.23
Export incentives	-	0.00	-	0.00	0.04	0.00	0.05	0.00
Total	1,422.65	100.00	6,261.82	100.00	5,856.24	100.00	5,025.17	100.00

Expenses

Our expenses primarily comprise:

Quarry Expenses

Quarry expenses include wire saw cutting expenses, wages, quarry expenses, raw block cutting expenses, feet drilling expenses, equipment hiring charges and pit development expenses.

Seignorage and Cess Fees

Seignorage and cess fees include royalty expenses - ADMG, royalty expenses - APMDC, consideration - ADMG and other royalty expenses - ADMG.

Cost of Materials Consumed

Cost of materials consumed comprises: (i) the opening stock of raw materials; (ii) the purchase of raw materials; and (iii) the closing stock of raw materials.

Stores and Spare Parts

Stores and spare parts comprises: (i) the opening stock of stores and spare parts; (ii) the purchase of stores and spare parts; and (iii) the closing stock of stores and spare parts.

Changes in inventories of finished goods, stock-in-trade, work-in progress

Changes in inventories of finished goods, stock-in-trade and work-in-progress is the difference in opening stock of finished goods, stock in trade, work in progress and closing stock of finished goods, stock in trade, work in progress.

Purchase of stock-in-trade

Purchase of stock-in-trade includes the materials which are in transit like spare parts, Diesel and explosives.

Employee benefits expense

Employee benefits expense includes salaries, wages and bonus, contribution to provident and other funds, gratuity and compensated absences expenses and staff welfare expenses.

Finance costs

Finance costs include interest on term loans, interest on working capital, interest on lease liabilities, interest on delay in payment of taxes, interest on MSME creditors, interest payable to APMDC and other borrowing costs.

Depreciation expense

Depreciation expense includes depreciation of property, plant and equipment and amortization of right-to-use assets.

Other expenses

Other expenses primarily include repairs and maintenance, transportation charges, carriage and freight, power and fuel, travelling and conveyance expenses, professional and consultancy fees and provisions for doubtful debts.

Set out below is a breakdown of our expenses, for the periods indicated.

(f million, except % data)

Particulars	Three-month period ended June 30, 2025		Fiscal 2025		Fiscal 2024		Fiscal 2023
	Amount	% of total expenses	Amount	% of total expenses	Amount	% of total expenses	Amount	% of total expenses
Quarry expenses	138.92	12.23	650.43	13.25	550.81	11.83	635.00	14.32
Seignorage and cess fees	247.77	21.81	1,005.55	20.48	1,045.06	22.45	953.61	21.50
Cost of materials consumed	27.68	2.44	76.76	1.56	72.23	1.55	82.92	1.87
Purchase of stock-in-trade	4.67	0.41	19.33	0.39	68.65	1.47	42.46	0.96
Consumption of stores and spare parts	157.74	13.89	756.03	15.40	753.55	16.19	909.18	20.50
Changes in inventories of finished goods, work-in-progress	(7.08)	(0.62)	151.51	3.09	184.86	3.97	(114.85)	(2.59)
Employee benefits expense	113.28	9.97	509.54	10.38	414.99	8.91	389.20	8.77
Finance costs	37.03	3.26	109.31	2.23	91.64	1.97	90.61	2.04
Depreciation expense	66.00	5.81	255.91	5.21	221.80	4.76	215.43	4.86
Other expenses	349.97	30.81	1,374.87	28.01	1,251.66	26.89	1,231.83	27.77
Total	1,135.98	100.00	4,909.24	100.00	4,655.25	100.00	4,435.39	100.00

Exceptional Items

There is an exceptional item (loss of Control of Subsidiary) for the Fiscal 2025 which has been charged to the statements of profit and loss included in our Restated Consolidated Financial Statements. Accordingly, the analysis in this section has excluded this item in the discussion on the financial statements for Fiscal 2025.

Tax Expenses

Our income tax expense comprises current tax and deferred tax. The following table sets forth a breakdown of our tax expenses for the periods indicated:

(t million, except % data)

Particulars	Three-month period ended June 30, 2025		Fiscal 2025		Fiscal 2024		Fiscal 2023
	Amount	% of total	Amount	% of total	Amount	% of total	Amount	% of total
Tax Expenses
Current tax	90.43	106.55	456.11	102.02	371.43	99.10	228.19	94.05
Tax relating to earlier years	(3.29)	(3.88)	0.10	0.02	13.44	3.59	6.04	2.49
Deferred tax	(2.27)	(2.67)	(9.14)	(2.04)	(10.06)	(2.68)	8.40	3.46
Total	84.87	100.00	447.07	100.00	374.81	100.00	242.63	100.00

OUR RESULTS OF OPERATIONS

The table below sets forth, for the periods indicated, certain items from our consolidated statement of profit and loss, in each case also stated as a percentage of our total income.

(t million, except % data)

Particulars	Three-month period ended June 30, 2025		Fiscal 2025		Fiscal 2024		Fiscal 2023
	Amount	% of total income	Amount	% of total income	Amount	% of total income	Amount	% of total income
INCOME
Revenue from operations	1422.65	97.13	6261.82	97.36	5,856.24	97.07	5,025.17	96.22
Other income	42.00	2.87	169.60	2.64	177.06	2.93	197.16	3.78
Total income	1464.65	100.00	6431.42	100.00	6,033.30	100.00	5,222.33	100.00
EXPENSES
Quarry expenses	138.92	9.48	650.43	10.11	550.81	9.13	635.00	12.16
Seigniorage and cess fees	247.77	16.92	1005.55	15.63	1,045.06	17.32	953.61	18.26
Cost of materials consumed	27.68	1.89	76.76	1.19	72.23	1.20	82.92	1.59
Purchases of stock-in-trade	4.67	0.32	19.33	0.30	68.65	1.14	42.46	0.81
Consumption of stores and spare parts	157.74	10.77	756.03	11.76	753.55	12.49	909.18	17.41
Changes in inventories of finished goods, stock-in-trade and work-inprogress	(7.08)	(0.48)	151.51	2.36	184.86	3.06	(114.85)	(2.20)
Employee benefits expense	113.28	7.73	509.54	7.92	414.99	6.88	389.20	7.45
Finance costs	37.03	2.53	109.31	1.70	91.64	1.52	90.61	1.74
Depreciation and amortisation expense	66.00	4.51	255.91	3.98	221.80	3.68	215.43	4.13
Other expenses	349.97	23.89	1374.87	21.38	1,251.66	20.75	1,231.83	23.59
Total expenses	1135.98	77.56	4909.24	76.33	4,655.25	77.16	4,435.39	84.93
Profit before share of profit of Joint Venture and tax	328.67	22.44	1522.18	23.67	1,378.05	22.84	786.94	15.07
Share of Profit of a Joint Ventures	-	-	-	-	-	-	0.05	0.00
Adjustment due to loss of Control of Subsidiary	-		257.88	4.01
Profit before tax for the period/year	328.67	22.44	1,780.06	27.68	1,378.05	22.84	786.99	15.07
Tax expense
Current tax	90.43	6.17	456.11	7.09	371.43	6.16	228.19	4.37
Tax pertaining to earlier years	(3.29)	(0.22)	0.10	0.00	13.44	0.22	6.04	0.12

 

Particulars	Three-month period ended June 30, 2025	Fiscal 2025	Fiscal 2024				Fiscal 2023
	Amount	% of total income	Amount	% of total income	Amount	% of total income	Amount	% of total income
Deferred tax	(2.27)	(0.15)	(9.14)	(0.14)	(10.06)	(0.17)	8.40	0.16
Total tax expense	84.87	5.79	447.07	6.95	374.81	6.21	242.63	4.65
Profit after tax for the period/year	243.80	16.65	1,332.99	20.73	1,003.24	16.63	544.36	10.42
Other comprehensive income/loss
Items that will not be reclassified subsequently
Remeasurement gain/(losses) of the Defined Benefit Plan	4.06	0.28	(8.94)	(0.14)	(158)	(0.03)	4.64	0.09
Income tax relating to above item	(1.02)	(0.07)	2.29	0.04	0.36	0.01	(1.17)	(0.02)
Items that will be reclassified to profit or loss:
Exchange differences in translating the financial statements of foreign operations Income tax relating to above	(1.63)	(0.11)	28.95	0.45	8.04	0.13	57.39	1.10
Total Other comprehensive income/(loss) for the period/year	1.41	0.10	22.30	0.35	6.82	0.11	60.86	1.17
Total comprehensive income for the period/year	245.21	16.74	1,355.29	21.07	1,010.06	16.74	605.22	11.59
Net profit attributable to:
Owners of the Company	232.06	15.84	1224.12	19.03	965.29	16.00	540.83	10.36
Non-controlling interests	11.74	0.80	108.87	1.69	37.95	0.63	3.53	0.07
Other Comprehensive Income attributable to:
Owners of the company	1.35	0.09	22.39	0.35	6.61	0.11	60.62	1.16
Non-controlling interests	0.06	0.00	(0.09)	(0.00)	0.21	0.00	0.24	0.00
Total Comprehensive Income attributable to:
Owners of the company	233.41	15.94	1246.51	19.38	971.90	16.11	601.45	11.52
Non-controlling interests	11.80	0.81	108.78	1.69	38.16	0.63	3.77	0.07

Segment Reporting

Our segmental reporting reflects our business segments. We report our business operations in three business segments: (i) Natural Stone Segment; (ii) Diamond Wire Segment; and (iii) Others.

The table below sets forth, for the periods indicated, a breakdown of our revenue from operations by our business segments:

(t million, except % data)

Particulars	Three-month period ended June 30, 2025		Fiscal 2025		Fiscal 2024		Fiscal 2023
	Amount	% of total	Amount	% of total	Amount	% of total	Amount	% of total
Natural Stone Segment	1338.11	94.06	6,009.55	95.97	5,627.17	96.09	4,831.93	96.16
Diamond Wire Segment	63.35	4.45	160.20	2.56	88.44	1.51	105.20	2.09
Others	21.19	1.49	92.07	1.47	140.64	2.40	88.04	1.75
Total	1422.65	100.00	6261.82	100.00	5,856.24	100.00	5,025.17	100.00

The table below sets forth, for the periods indicated, a breakdown of our revenue from operations by geography:

(t million, except % data)

Particulars	Three-month period ended June 30, 2025		Fiscal 2025		Fiscal 2024		Fiscal 2023
	Amount	% of total	Amount	% of total	Amount	% of total	Amount	% of total
Within India	517.06	36.34	2,694.49	43.03	2,198.73	37.55	1,986.73	39.54
Outside India	905.59	63.66	3,567.33	56.97	3,657.51	62.46	3,038.44	60.46
Total	1,422.65	100.00	6261.82	100.00	5,856.24	100.00	5,025.17	100.00

THREE-MONTH PERIOD ENDED JUNE 30, 2025 For the three-month period ended June 30, 2025 Income

Our total income for the three-month period ended June 30, 2025 was Rs.1,464.65 million, comprising revenue from operations of Rs. 1,422.65 million and other income of Rs. 42 million.

Revenue from operations

Our revenue from operations for the three-month period ended June 30, 2025 was Rs. 1,422.65 million (representing approximately 97.13% of our total income in that period).

Natural Stone Segment

Our revenue attributable to Natural Stone Segment for the three-month period ended June 30, 2025 was Rs.1,338.11 million (representing approximately 94.06% of our total revenue from operations in that period).

Diamond Wire Segment

Our revenue attributable to Diamond Wire Segment for the three-month period ended June 30, 2025 were Rs.63.35 million (representing approximately 4.45% of our total income in that period).

Others

Our revenue attributable to the Others segment, which comprises scrap sales and export incentives received, for the three- month period ended June 30, 2025 were Rs.21.19 million (representing approximately 1.49% of our total income in that period).

Other Income

Our other income for the three-month period ended June 30, 2025, were Rs. 42 million (representing approximately 2.87% of our total income in that period).

Expenses

Our expenses for the three-month period ended June 30, 2025 were Rs. 1,135.98 million (representing approximately 77.56% of our total income in that period).

Quarry expenses

Our Query expenses for the three-month period ended June 30, 2025 were Rs. 138.92 million (which accounted for 9.48 % of our total income and 12.23% of our total expenses in that period).

Seignorage and cess fees

Our expenses on seignorage and cess fees for the three-month period ended June 30, 2025 were Rs.247.77 million (which accounted for 16.92% of our total income and 21.81% of our total expenses in that period).

Cost of materials consumed

Our cost of materials consumed for the three-month period ended June 30, 2025 were Rs.27.68 million (which accounted for 1.89% of our total income and 2.44% of our total expenses in that period).

Changes in inventories of finished goods, stock-in-trade and work-in-progress

Our changes in inventories of finished goods, stock-in-trade and work-in-progress for the three-month period ended June 30, 2025 were t (7.08) million (which accounted for (0.48)% of our total income and (0.62)% of our total expenses in that period).

Consumption of stores and spare parts

Our expenses on consumption of stores and spare parts for the three-month period ended June 30, 2025 were t157.74 million (which accounted for 10.77% of our total income and 13.89% of our total expenses in that period).

Employee benefits expense

Our employee benefits expense for the three-month period ended June 30, 2025 was t113.28 million (which accounted for 7.73% of our total income and 9.97% of our total expenses in that period).

Finance costs

Our employee benefits expense for the three-month period ended June 30, 2025 were t37.03 million (which accounted for 2.53% of our total income and 3.26% of our total expenses in that period).

Depreciation and amortization expense

Our depreciation and amortization expenses for the three-month period ended June 30, 2025 was t66.00 million (which accounted for 4.51% of our total income and 5.81% of our total expenses in that period).

Other expenses

Our other expenses for the three-month period ended June 30, 2025 were 349.97 million (which accounted for 23.89% of our total income and 30.81% of our total expenses in that period).

Profit before tax for the year

Our profit before tax for the three-month period ended June 30, 2025 was t328.67 million.

Tax expenses

Our tax expenses for the three-month period ended June 30, 2025 were t 84.87 million.

Profit after tax for the year

Our profit for the period for the three-month period ended June 30, 2025, was t 243.80 million.

FISCAL 2025 COMPARED TO FISCAL 2024 Income

Our total income increased by 6.60% to t 6,431.42 million in Fiscal 2025 from t6,033.30 million in Fiscal 2024 primarily due to an increase in our production and sales volume of Granite.

Revenue from operations

Our revenue from operations increased by 6.93% to t 6,261.82 million in Fiscal 2025 from t5,856.24 million in Fiscal 2024, which was primarily due to the reasons set forth below:

Natural Stone Segment

Our revenue attributable to the Natural Stone Segment increased by 6.80% to t6,009.55 million in Fiscal 2025 from t5,627.17 million in Fiscal 2024, primarily due to an increase in our production and sales volume of Granite.

Diamond Wire Segment

Our revenue attributable to the Diamond Wire Segment increased by 81.14% to Rs.160.20 million in Fiscal 2025 from Rs.88.44 million in Fiscal 2024, primarily due to an increase in the production and sales volume and better price yield in the segment.

Others

Our revenue attributable to the others segment decreased by 34.53% to Rs.92.07 million in Fiscal 2025 from Rs.140.64 million in Fiscal 2024, primarily due to a decrease in trading volumes of Granite.

Other income

Our other income decreased by 4.21% to Rs. 169.60 million in Fiscal 2025 from Rs.177.06 million in Fiscal 2024, which was primarily due to the disposal of assets during Fiscal 2025 being lower as compared to Fiscal 2024, and no profit was generated from such asset sales, resulting in a decrease in other income for the FY 2025.

Expenses

Our expenses increased by 5.46% to Rs. 4,909.24 million in Fiscal 2025 (representing approximately 78.40% of our revenue from operations in that year) from Rs.4,655.25 million in Fiscal 2024 (representing approximately 79.49% of our revenue from operations in that year). The 5.46% increase in our expenses was consistent with the 6.93% increase in our revenue from operations during the same period. The primary reasons for the increase in expenses are discussed below.

Quarry expenses

Our quarry expenses increased by 18.09% to Rs. 650.43 million in Fiscal 2025 from Rs.550.81 million in Fiscal 2024, primarily due to an increase in the wire saw cutting charges and other labour expenses. Our quarry expenses represented approximately: (i) 10.39% of our revenue from operations in Fiscal 2025, compared with 9.41% in Fiscal 2024; and (ii) 13.25% of our total expenses in Fiscal 2025, compared with 11.83% in Fiscal 2024.

Seignorage and cess fees

Our seignorage and cess fees decreased by 3.78% to Rs. 1,005.55 million in Fiscal 2025 from Rs.1,045.06 million in Fiscal 2024, primarily due to increase in our domestic sales volume (where royalties are paid by the purchasers at their respective factories through their factory permits. Our seignorage and cess fees represented approximately: (i) 16.06% of our revenue from operations in Fiscal 2025, compared with 17.85% in Fiscal 2024; and (ii) 20.48% of our total expenses in Fiscal 2025, compared with 22.45% in Fiscal 2024.

Cost of materials consumed

Our cost of material consumed increased by 6.27% to Rs. 76.76 million in Fiscal 2025 from Rs.72.23 million in Fiscal 2024, corresponding to the increase in our revenue from operations, leading to an increase in our consumption of materials. Our cost of material consumed represented approximately: (i) 1.23% of our revenue from operations in Fiscal 2025, compared with 1.23% in Fiscal 2024; and (ii) 1.56% of our total expenses in Fiscal 2025, compared with 1.55% in Fiscal 2024.

Changes in inventories

Our changes in inventories decreased by 18.04% to Rs. 151.51 million in Fiscal 2025 from Rs.184.86 million in Fiscal 2024, resulting from changes in inventories as on the reporting date. Our changes in inventories represented approximately: (i) 2.42% of our revenue from operations in Fiscal 2025, compared with 3.16% in Fiscal 2024; and (ii) 3.09% of our total expenses in Fiscal 2025, compared with 3.97% in Fiscal 2024.

Consumption of Stores and spare parts

Our expenses on consumption of stores and spare parts increased by 0.33% to Rs. 756.03 million in Fiscal 2025 from Rs.753.55 million in Fiscal 2024, corresponding to the increase in our revenue from operations, leading to an increase in our consumption of stores and spares. Our expenses on consumption of stores and spare parts represented approximately: (i) 12.07% of our revenue from operations in Fiscal 2025, compared with 12.87% in Fiscal 2024; and (ii) 15.40 % of our total expenses in Fiscal 2025, compared with 16.19% in Fiscal 2024.

Employee benefits expense

Our employee benefits expense increased by 22.78% to Rs. 509.54 million in Fiscal 2025 from Rs.414.99 million in Fiscal 2024, primarily due to the recruitment of managers for our new verticals and a restructuring of managerial remuneration. Our employee benefits expenses represented approximately: (i) 8.14% of our revenue from operations in Fiscal 2025, compared with 7.09% in Fiscal 2024; and (ii) 10.38% of our total expenses in Fiscal 2025, compared with 8.91% in Fiscal 2024.

Finance costs

Our finance costs increased by 19.28% to Rs. 109.31 million in Fiscal 2025 from Rs.91.64 million in Fiscal 2024, primarily due to increases in our working capital requirements which led to an increase in our finance costs. Our finance costs represented approximately: (i) 1.75% of our revenue from operations in Fiscal 2025, compared with 1.56% in Fiscal 2024; and (ii) 2.23% of our total expenses in Fiscal 2025, compared with 1.97% in Fiscal 2024.

Depreciation and amortization expense

Our depreciation expense increased by 15.38% to Rs.255.91 million in Fiscal 2025 from Rs.221.80 million in Fiscal 2024, primarily due to additions of depreciable assets during the period. Our depreciation expenses represented approximately: (i) 4.09% of our revenue from operations in Fiscal 2025, compared with 3.79% in Fiscal 2024; and (ii) 5.21% of our total expenses in Fiscal 2025, compared with 4.76% in Fiscal 2024.

Other expenses

Our other expenses increased by 9.84% to Rs. 1,374.87 million in Fiscal 2025 from Rs.1,251.66 million in Fiscal 2024, corresponding to the increase in our revenue from operations, leading to an increase in our other expenses. Our other expenses represented approximately: (i) 21.96% of our revenue from operations in Fiscal 2025, compared with 21.37% in Fiscal 2024; and (ii) 28.01% of our total expenses in Fiscal 2025, compared with 26.89% in Fiscal 2024.

Profit before tax for the year

As a result of the factors discussed above, our profit before tax for the year increased by 10.46% to Rs.1,522.18 million in Fiscal 2025 from Rs.1,378.05 million in Fiscal 2024. Our effective tax rate (total tax expense as a percentage of profit before tax) was 25.12% in Fiscal 2025 compared with 27.20% in Fiscal 2024. The corporate tax rate for India was 25.17% in Fiscal 2025 and 25.17% in Fiscal 2024.

Tax expenses

Our tax expenses increased by 19.28% to Rs.447.07 million in Fiscal 2025 from Rs.374.81 million in Fiscal 2024, primarily due to an increase in our profit before tax and the taxes payable on dividends received from our Subsidiary. Our tax expenses represented approximately: (i) 7.14% of our revenue from operations in Fiscal 2025, compared with 6.40% in Fiscal 2024; and (ii) 9.11% of our total expenses in Fiscal 2025, compared with 8.05% in Fiscal 2024.

Profit after tax for the year

Our profit after tax for the year increased by 32.87% to Rs.1,332.99 million in Fiscal 2025 from Rs.1,003.24 million in Fiscal 2024, corresponding to the increase in our revenue from operations and cost efficiencies achieved.

Our revenue from operations increased by 6.93% to Rs.6,261.82 million in Fiscal 2025 from Rs.5,856.24 million in Fiscal 2024. While, our expenses increased by 5.46% to Rs.4,909.24 million in Fiscal 2025 from Rs.4,655.25 million in Fiscal 2025.

FISCAL 2024 COMPARED TO FISCAL 2023

Income

Our total income increased by 15.53% to Rs.6,033.30 million in Fiscal 2024 from Rs.5,222.33 million in Fiscal 2023 primarily due to an increase in our revenue from operations which offset the decrease in our other income during this period.

Revenue from operations

Our revenue from operations increased by 16.54% to Rs.5,856.24 million in Fiscal 2024 from Rs.5,025.17 million in Fiscal 2023, which was primarily due to the reasons set forth below:

Natural Stone Segment

Our revenue attributable to the Natural Stone Segment increased by 16.46% to Rs.5,627.17 million for Fiscal 2024 from Rs.4,831.92 million in Fiscal 2023, primarily due to an increase in operational efficiency, improved recovery rate of saleable product and addition of high-performance equipment such as wheel loaders.

Diamond Wire Segment

Our revenue attributable to the Diamond Wire Segment decreased by 15.93% to Rs.88.44 million for Fiscal 2024 from Rs.105.20 million in Fiscal 2023, primarily due to a focus being placed during Fiscal 2024 on (i) research and development activities in the Diamond Wire Segment including improving the durability, speed and efficiency of our Diamond Wire; and the development of the multi-wire - a tool for cutting slabs; and (ii) growth initiatives such as establishing a reliable network of dealers, all of which impacted revenue generation from this segment during Fiscal 2024.

Others

Our revenue attributable to the Others segment, which comprises scrap sales and export incentives received, increased by 59.73% to Rs.140.64 million for Fiscal 2024 from Rs.88.04 million in Fiscal 2023, primarily due an increase in the volume of traded goods and an increase in the sale volume of processed slabs.

Other income

Our other income decreased by 10.19% to Rs.177.06 million in Fiscal 2024 from Rs.197.16 million in Fiscal 2023, which was primarily as there was no job work income done in the Fiscal year 2024.

Expenses

Our expenses increased by 4.96% to Rs.4,655.25 million in Fiscal 2024 (representing approximately 79.49% of our revenue from operations in that year) from Rs.4,435.39 million in Fiscal 2023 (representing approximately 88.26% of our revenue from operations in that year). Although there was a 4.96% increase in our expenses in absolute terms between Fiscals 2023 and 2024, our expenses only represented 79.49% of our revenue from operations during Fiscal 2024, as compared to 88.26% during Fiscal 2023, reflecting the optimisation of our expenses. The primary reasons for the increase in expenses are discussed below.

Quarry expenses

Our quarry expenses decreased by 13.26% to Rs.550.81 million in Fiscal 2024 from Rs.635.00 million in Fiscal 2023, primarily due to a decrease in charges incurred towards wire saw, block cutting and equipment hiring. Our quarry expenses represented approximately: (i) 9.41% of our revenue from operations in Fiscal 2024, compared with 12.64% in Fiscal 2023; and (ii) 11.83% of our total expenses in Fiscal 2024, compared with 14.32% in Fiscal 2023.

Seignorage and cess fees

Our expenses on seignorage and cess fees increased by 9.59% to Rs.1,045.06 million in Fiscal 2024 from Rs.953.61 million in Fiscal 2023, primarily on account of increase in the production and sale of our products on which royalty, seignorage or cess fees are payable to the relevant State Government. Our seignorage and cess fees represented approximately: (i) 17.85% of our revenue from operations in Fiscal 2024, compared with 18.98% in Fiscal 2023; and (ii) 22.45% of our total expenses in Fiscal 2024, compared with 21.50% in Fiscal 2023.

Cost of materials consumed

Our cost of materials consumed decreased by 12.89% to Rs.72.23 million in Fiscal 2024 from Rs.82.92 million in Fiscal 2023, which was primarily due to lower consumption of materials as a result of increase in production efficiency. Our cost of materials consumed represented approximately: (i) 1.23% of our revenue from operations in Fiscal 2024, compared with 1.65% in Fiscal 2023; and (ii) 1.55% of our total expenses in Fiscal 2024, compared with 1.87% in Fiscal 2023.

Changes in inventories of finished goods, stock-in-trade and work-in-progress

Our changes in inventories of finished goods, stock-in-trade and work-in-progress increased by 260.96% to Rs.184.86 million in Fiscal 2024 from Rs.(114.85) million in Fiscal 2023 primarily due to optimization of inventory levels. Our changes in inventories of finished goods, stock-in-trade and work-in-progress represented approximately: (i) 3.16% of our revenue from operations in Fiscal 2024, compared with (2.29)% in Fiscal 2023; and (ii) 3.97% of our total expenses in Fiscal 2024, compared with (2.59)% in Fiscal 2023.

Consumption of stores and spare parts

Our expenses on consumption of stores and spare parts decreased by 17.12% to Rs.753.55million in Fiscal 2024 from Rs.909.18 million in Fiscal 2023, primarily due to a decrease in the price of diesel and the deployment of more fuel-efficient equipment during Fiscal 2024.Our expenses on consumption of stores and spare parts represented approximately: (i) 12.87% of our revenue from operations in Fiscal 2024, compared with 18.09% in Fiscal 2023; and (ii) 16.19% of our total expenses in Fiscal 2024, compared with 20.50% in Fiscal 2023.

Employee benefits expense

Our employee benefits expense increased by 6.63% to Rs.414.99 million in Fiscal 2024 from Rs.389.20 million in Fiscal 2023, primarily on account of increase in the number of employees and workers employed, commensurate with operational needs. Our employee benefits expense represented approximately: (i) 7.09% of our revenue from operations in Fiscal 2024, compared with 7.75% in Fiscal 2023; and (ii) 8.91% of our total expenses in Fiscal 2024, compared with 8.77% in Fiscal 2023.

Finance costs

Our finance costs increased by 1.14% to Rs.91.64 million in Fiscal 2024 from Rs.90.61 million in Fiscal 2023, primarily due to interest charges incurred on additional equipment loans availed. Our finance costs represented approximately: (i) 1.56% of our revenue from operations in Fiscal 2024, compared with 1.80% in Fiscal 2023; and (ii) 1.97% of our total expenses in Fiscal 2024, compared with 2.04% in Fiscal 2023.

Depreciation and amortization expense

Our depreciation and amortization expense increased by 2.96% to Rs.221.80 million in Fiscal 2024 from Rs.215.43 million in Fiscal 2023, primarily on account of additions to plant and machinery during the year. Our depreciation and amortization expense represented approximately: (i) 3.79% of our revenue from operations in Fiscal 2024, compared with 4.29% in Fiscal 2023; and (ii) 4.76% of our total expenses in Fiscal 2024, compared with 4.86% in Fiscal 2023.

Other expenses

Our other expenses increased by 1.61% to Rs.1,251.66 million in Fiscal 2024 from Rs.1,231.83 million in Fiscal 2023 consistent with the increase in our operational activities and revenue during this period. Our other expenses represented approximately: (i) 21.37% of our revenue from operations in Fiscal 2024, compared with 24.51% in Fiscal 2023; and (ii) 26.89% of our total expenses in Fiscal 2024, compared with 27.77% in Fiscal 2023.

Profit before tax for the year

As a result of the factors discussed above and due to cost optimization and increased revenue resulting in optimization of fixed overheads, our profit before tax for the year increased by 75.12% to Rs.1,378.05 million in Fiscal 2024 from Rs.786.99 million in Fiscal 2023.Our effective tax rate (total tax expense as a percentage of profit before tax) was 27.20% in Fiscal 2024 compared with 30.83% in Fiscal 2023. The corporate tax rate in India was 25.17% in Fiscal 2024 and 25.17% in Fiscal 2023.

Tax expenses

Our tax expenses increased by 54.48% to Rs.374.81 million in Fiscal 2024 from Rs.242.63 million in Fiscal 2023, primarily due to an increase in profit before tax for the year. Our tax expenses represented approximately: (i) 6.40% of our revenue from operations in Fiscal 2024, compared with 4.83% in Fiscal 2023; and (ii) 8.05% of our total expenses in Fiscal 2024, compared with 5.47% in Fiscal 2023.

Profit after tax for the year

Our profit after tax for the year increased by 84.30% to Rs.1,003.24 million in Fiscal 2024 from Rs.544.36 million in Fiscal 2023 due to an increase in our revenue from operations by 16.54% to Rs.5,856.24 million in Fiscal 2024 from Rs.5,025.17 million in Fiscal 2023 and optimisation of our expenses. Our expenses only increased by 4.96% to Rs.4,655.25 million in Fiscal 2024 (representing approximately 79.49% of our revenue from operations in that year) from Rs.4,435.39 million in Fiscal 2023 (representing approximately 88.26% of our revenue from operations in that year).

LIQUIDITY AND CAPITAL RESOURCES

Our liquidity requirements primarily relate to capital expenditure and working capital. We are required to undertake capital investment on a regular basis to purchase and upgrade our machinery and vehicles, among other things. Cash in the form of cash on hand, balance with bank in current accounts and deposits with original maturity of less than three months together represent our cash and cash equivalents.

Our cash and cash equivalents increased by 34.73% from Rs. 142.25 million as of March 31, 2025 to Rs. 191.65 million as of June 30, 2025, primarily due to addition of capital expenditure for the Phase I Quartz Processing Plant which resulted in the lower cash and cash equivalents. Our cash and cash equivalents decreased to Rs.254.58 million as of March 31, 2024 to 44.12% from Rs.142.25 million as of March 31, 2025, primarily due to addition of Capital expenditure for Phase - I plant which resulted in the lower cash & cash equivalents. Our cash and cash equivalents increased by 131.10% from Rs.110.16 million as of March 31, 2023 to Rs.254.58 million as of March 31, 2024, primarily due to an increase in our current account bank balances.

The balance in our current accounts as of a specific date fluctuates due to the short-term changes in inflows or outflows of cash to our current accounts. This fluctuation is attributable to the difference in timing of cash inflows and outflows, scheduled receipts, payments, and other operational activities that affect liquidity in the ordinary course of business.

As of June 30, 2025, we had Rs.191.65 million in cash and cash equivalents and Rs.5.55 million as bank balances other than cash and cash equivalents. We believe that our lines of credit and our working capital facilities provide us sufficient liquidity to meet our present requirements and anticipated requirements for working capital for 12 months following the date of this Red Herring Prospectus. We do not anticipate any significant requirements towards capital expenditure in the near future, other than the capital expenditure requirements disclosed in "Objects of the Offer" beginning on page 116.

CASH FLOWS

The table below sets forth our cash flows for the periods indicated:

(f million)

Particulars	Three-month period ended June 30, 2025	Fiscal
		2025	2024	2023
Net cash flows generated from/(used in) operating activities	284.08	873.14	1,279.07	(519.46)
Net cash flows generated from/(used in) investing activities	(534.75)	(2010.43)	(635.89)	(174.59)
Net cash flows generated from/(used in) financing activities	300.07	1024.96	(498.76)	448.11
Net increase in cash and cash equivalents	49.40	(112.33)	144.42	(245.94)
Cash and cash equivalents at the beginning of the year	142.25	254.58	110.16	356.10
Cash and cash equivalents at the end of the year	191.65	142.25	254.58	110.16

Three-month period ended June 30, 2025

Cash flows from operating activities

The net cash flow generated from operating activities in the three-month period ended June 30, 2025 was Rs. 284.08 million, while profit before tax was Rs.328.67 million. The difference was attributable primarily to liabilities no longer required written back of Rs.6.85 million, interest income of Rs.15.79 million, profit on discard/ sale of property, plant and equipment of Rs.0.46 million and dividend income of Rs.0.09 million.

These were partially offset by adjustments for depreciation expense of Rs.66.00million, and finance costs of Rs.37.03 million.

Further there were also working capital changes including decrease in other current assets of Rs.83.56 million, decrease in trade receivables of Rs. 62.78 million, increase in other financial assets of Rs.5.80 million and decrease in other financial liabilities of Rs.40.26 million. These were partially offset by decrease in other liabilities of Rs.18.79 million, decrease in inventories Rs.12.18 million, decrease in trade payables of Rs.136.60 million and decrease in provision of Rs. 8.66 million.

Cash flows from investing activities

The net cash flow used in investing activities in the three-month period ended June 30, 2025 was t 534.75 million, which was attributable primarily to purchase of property, plant and equipment including capital advances of t565.52million and net of purchase and sale of investments of t 1.10 million.

These were partially offset by inflows of t9.47 million from proceeds from sale of property, plant and equipment and t15.79 million from interest received.

Cash flows from financing activities

The net cash flow used in financing activities in the three-month period ended June 30, 2025 was t300.07 million, which was attributable primarily from long term and short term borrowings (net) of t189.43 and 145.57 million, and payment of interest of t 31.91 million.

Fiscal 2025

The net cash flow generated from operating activities in Fiscal 2025 was t873.14 million, while profit before tax was t1710.83 million. The difference was attributable primarily to liabilities no longer required written back of t 26.08 million, interest income of t 62.52 million, profit on discard/ sale of property, plant and equipment of t 2.30 million and dividend income of t 1.19 million.

These were partially offset by adjustments for depreciation expense of t 255.91 million, finance costs of t 109.31 million, assets discarded of t 22.89 million and balances written off of t 3.35 million.

Further there were also working capital changes including increase in other current assets of t250.46 million, increase in trade receivables of t1214.77 million, decrease in other financial assets of t83.04 million and increase in other financial liabilities of t323.91 million. These were partially offset by decrease in other liabilities of t327.25 million, decrease in inventories t95.87 million, increase in trade payables of t283.72 million and increase in provision of t26.94 million.

Cash flows from investing activities

The net cash flow used in investing activities in Fiscal 2025 was t2,010.43 million, which was attributable primarily to purchase of property, plant and equipment including capital advances of t(1,838.36) million and net of purchase and sale of investments of t8.30 million.

These were partially offset by inflows of t83.05 million from proceeds from sale of property, plant and equipment, t192.84 million from proceeds from Investments and t62.52 million from interest received.

Cash flows from financing activities

The net cash flow generated from financing activities in Fiscal 2025 was t1024.96 million, which was attributable primarily from long term and short term borrowings (net) of t845.19and 316.08 million respectively, payment of dividend of t22.00 million and payment of interest of t109.31 million.

Fiscal 2024

Cash flows from operating activities

The net cash flow generated from operating activities in Fiscal 2024 was t1,279.07 million, while profit before tax was t1,378.05 million. The difference was attributable primarily to liabilities no longer required written back of t28.10 million, interest income of t13.53 million, profit on discard/ sale of property, plant and equipment of t28.86 million and dividend income of t1.01 million.

These were partially offset by adjustments for depreciation expense of t221.80 million, provisions for credit impaired trade receivable of t7.60 million, finance costs of t91.64 million, assets discarded of t16.17 million and balances written off of t4.83 million.

Further there were also working capital changes including increase in other current assets of t247.75 million, increase in trade receivables of t296.32 million, increase in other financial assets of t96.13 million and increase in other financial

liabilities of Rs.185.51 million. These were partially offset by increase in other liabilities of Rs.199.70 million, decrease in inventories Rs.202.19 million, increase in trade payables of Rs.10.78 million and increase in provision of Rs.3.66 million.

Cash flows from investing activities

The net cash flow used in investing activities in Fiscal 2024 was Rs.635.89 million, which was attributable primarily to purchase of property, plant and equipment including capital advances of Rs.630.90 million and net of purchase and sale of investments of Rs.152.28 million.

These were partially offset by inflows of Rs.163.42 million from proceeds from sale of property, plant and equipment and Rs.13.53 million from interest received.

Cash flows from financing activities

The net cash flow used in financing activities in Fiscal 2024 was Rs.498.76 million, which was attributable primarily to repayment of short term borrowings (net) of Rs.238.47 million, payment of dividend of Rs.150.26 million, payment of interest of Rs.63.92 million and repayment of long term borrowings (net) of Rs.47.46 million.

Fiscal 2023

Cash flows from operating activities

The net cash flow used in operating activities in Fiscal 2023 was Rs.519.46 million, while profit before tax was Rs.786.94 million. This was primarily attributable to working capital changes including increase in trade receivables of Rs.558.37 million, decrease in other liabilities of Rs.472.37 million, increase in other current assets of Rs.157.04 million and liabilities no longer required written back of Rs.8.19 million.

These were partially offset by adjustments for depreciation expenses of Rs.215.43 million and finance costs of Rs.90.61 million and bad debts written off of Rs.43.30 million.

Cash flows from investing activities

The net cash flow used in investing activities in Fiscal 2023 was Rs.174.59 million, which was attributable primarily to purchase of property, plant and equipment including capital advances of Rs.444.52 million and net of purchase and sale of investments of Rs.94.87 million.

These were partially offset by inflows of Rs.257.13 million from deposits placed having original maturity of more than 3 months, net and Rs.101.58 million from sale of property, plant and equipment.

Cash flows from financing activities

The net cash flow generated from financing activities in Fiscal 2023 was Rs.448.11 million, which was attributable primarily to proceeds from short term borrowings (net) of Rs.415.89 million and proceeds from long term borrowings (net) of Rs.110.03 million, which was partially offset by interest paid of Rs.86.45 million and dividend paid of Rs.11.00 million.

FINANCIAL INDEBTEDNESS

As of June 30, 2025 our outstanding borrowings aggregated to Rs.2,701.10 million. The table below sets forth details of our outstanding borrowings as of June 30, 2025.

(t million)

Category of Borrowing	Outstanding Amount as of June 30,2025
Non-current
Secured loans
Term loan	1,737.90
Other parties	-
Loan from related parties	-
From others	136.89
Current maturities of non current borrowings	(342.44)
Sub-total (A)	1,532.35

448

Category of Borrowing	Outstanding Amount as of June 30,2025
Working Capital Loans	826.31
Current maturities of non current borrowings	342.44
Sub-total (B)	1,168.75
Total (A+B)	2,701.10

Also see "Risk Factors— Our financing arrangements contain certain restrictive covenants, and non-compliance with any of the covenants of our financing agreements could trigger an event of default" on page 65.

CREDIT RATINGS

The cost and availability of capital is dependent, among other factors, on our short-term and long-term credit ratings. Ratings reflect a rating agencys opinion of our financial strength, operating performance, strategic position and our ability to meet our obligations. Details of our credit ratings as on the date of this Red Herring Prospectus are provided below:

Agency	Date of Credit Rating	Instrument	Rating/ Outlook
CRISIL	April 17, 2025	Issuer Rating	CRISIL A-/Positive

CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS

The table below sets forth our undiscounted contractual maturities of significant financial liabilities as of June 30, 2025. These obligations primarily relate to our contractual maturities of significant financial liabilities such as borrowings, trade payables and other financial liabilities. The amounts are on a gross basis and undiscounted contractual cash flow includes contractual interest payment and excludes netting arrangements.

f million)

Undiscounted contractual maturities of significant financial liabilities as of June 30, 2025
Particulars	On demand	Less than 1 year	1 to 5 years	More than 5 years	Total
Long-term borrowings (excluding current maturities)	1,532.35	-	1,111.22	421.13	1,532.35
Lease liabilities	48.98	5.10	12.95	101.50	119.55
Short-term borrowings	1,168.75	1,168.75	-	-	1,168.75
Trade payables	362.91	362.91	-	-	362.91
Other financial liabilities	470.32	470.32	-	-	470.32
Total	3,583.31	2,007.08	1,124.17	522.63	3,653.88

The Company has secured loans from banks that contain loan covenants. A future breach of covenants may require the Company to repay the loan earlier than indicated in the above table.

CONTINGENT LIABILITIES AND COMMITMENTS

Set out below are our contingent liabilities and commitments as of June 30, 2025.

f million)

Contingent Liabilities and commitments	As of June 30, 2025 (Rs. million)
Contingent Liabilities
(i) Direct tax	151.42
(ii) Goods and Service Tax	439.21
(iii) Excise duty and Customs duty	212.14
(iv) Entry tax	96.69
(v) Other disputes/ matters	88.99
(vi) Other claims and guarantees	229.12
Bank guarantees (including performance guarantee) issued by the banks on behalf of the group.
Capital Commitments
Capital Commitments (estimate amount of contracts remaining to be executed on capital accounts and not provided for)(net of advances)	189.81
On account of Bonds executed with Customs authorities	-
Total	1,407.38

For further details of the contingent liabilities of our Company, see Note 43 to the Restated Consolidated Financial Statements included in "Restated Consolidated Financial Statements beginning on page 390. Also see "Risk Factors— We have certain contingent liabilities and commitments which if materialized, may adversely affect our financial condition." on page 45.

OFF-BALANCE SHEET COMMITMENTS AND ARRANGEMENTS

Except as disclosed in our Restated Consolidated Financial Statements included in this Red Herring Prospectus, there are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that we believe are material to investors. We do not enter into derivative instruments, swap transactions or relationships with affiliates or other unconsolidated entities or financial partnerships that would have been established for the purpose of facilitating off- balance sheet arrangements.

RELATED PARTY TRANSACTIONS

We have engaged in the past, and may engage in the future, in transactions with related parties including our affiliates. Such transactions are for, among others, repayment of loans, remuneration, professional charges, rent paid, salaries, sale of goods. In addition, we have engaged in related party transactions with our Promoters, Key Managerial Personnel and Promoter Group which primarily relate to capital advances, receipt of loans, repayment of loans, remuneration payments, rent payments, professional charges. Our related party transactions (excluding related party transactions eliminated during the year) for the three-month period ended June 30, 2025 and Fiscals 2025, 2024 and 2023, constituted 3.15%,7.70%, 8.23%, and 4.19%, respectively, as a percentage of our revenue from operations in the those periods. For details, see Note 37 to our Restated Consolidated Financial Statements included in "Restated Consolidated Financial Statements" and "Risk Factors—We enter into certain related party transactions in the ordinary course of our business and we cannot assure you that such transactions will not adversely affect our financial condition and results of operations" on pages 340 and 66, respectively.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to market risk, interest rate risk, credit risk, liquidity risk, foreign currency risk and commodity risk in the normal course of our business. Our Board has overall responsibility for the establishment and oversight of our risk management framework. Our risk management policies are established to identify and analyze the risks faced, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Our risk management policies and systems are reviewed regularly to reflect changes in market conditions and our activities.

Credit risk

i. Credit risk management

Credit risk is the risk of financial loss to the group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises principally from the groups receivables from deposits with landlords and other statutory deposits with regulatory agencies and also arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The group assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

The group limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a months operational costs. The Management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts. The group does a proper financial and credibility check on the landlords before taking any property on lease and has not had a single instance of non-refund of security deposit on vacating the leased property. The group also in some cases ensure that the notice period rentals are adjusted against the security deposits and only differential, if any, is paid out thereby further mitigating the non-realization risk. The group does not foresee any credit risks on deposits with regulatory authorities.

ii. Trade Receivables

Customer credit risk is managed by each business unit subject to the Groups established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating

scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.

(t million)

Particulars	Three-month period ended June 30, 2025	Fiscal 2025	Fiscal 2024	Fiscal 2023
Revenue from Top Customer	352.67	725.47	398.00	524.86
Revenue from Top 5 customers (other than the above customer)	460.22	1,778.12	1,625.37	1,567.48

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companys approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companys reputation. See "—

Liquidity and Capital Resourced" and "—Contractual obligations and commercial commitments" on pages 446 and 449, respectively, for further details.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings and derivative financial instruments.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The group exposure to the risk of changes in market interest rates relates primarily to the groups long-term debt obligations with floating interest rates. The group manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

(t million)

Exposure to interest rate risk	As at
	June 30, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Variable rate borrowings	866.90	1,180.62	655.10	706.10
Fixed rate borrowings	1,834.20	1,185.48	549.73	784.66

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings. With all other variables constant, the groups profit before tax is affected through the impact on floating rate borrowings, as follows:

(t million)

Particulars	As at
	June 30, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Sensitivity
1% increase in variable rate	(8.67)	(11.81)	(6.55)	(7.06)
1% decrease in variable rate	8.67	11.81	6.55	7.06

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Companys exposure to the risk of changes in foreign exchange rates relates primarily to the Companys operating activities (when revenue or expense is denominated in a different currency from the Companys functional currency).

The following table demonstrates the sensitivity to a reasonably possible change in the USD/EUR exchange rate (or any other material currency), with all other variables held constant, of the Companys profit before tax (due to changes in the fair value of monetary assets and liabilities) as on June 30, 2025. The Companys exposure to foreign currency changes for all other currencies is not material. Our management monitors the movement in foreign currency and our exposure to each

451

foreign currency. For further details, see "Risk Factors—Exchange rate fluctuations may adversely affect our business, financial conditions, cash flows and results of operations." on page 50.

(million, unless otherwise specified)

Particulars	Amount in USD	Equivalent amount in Rs. for USD	Amount in Euro	Equivalent amount in Rs. for Euro
Trade receivable	15.29	1535.80	-	-
Advance for purchases	-	-	-	-
Advance for purchases (capital)	-	-	-	-
Unhedged Assets	15.29	1535.80	-	-
Advances from customers	-	-	-	-
Payable for supplies	0.05	4.80	0.03	3.60
Borrowings	8.55	858.81	-	-
Unhedged Liabilities	8.60	863.61	0.03	3.60

Other price and commodity risk

Inflationary factors such as increases in the costs of power and fuel costs may adversely affect our operating results. Fuel pricing can be volatile due to a number of factors beyond our control, and there are uncertainties inherent in estimating such variables, regardless of the methodologies and assumptions that we may use. Based on our analysis of the periods presented, we believe that inflation has not had a material effect on our operating results as inflationary increases in power and fuel have generally been offset through increases in price of our products.

OTHER QUALITATIVE FACTORS

Recent Accounting Changes

There are no recent accounting changes which would have been applicable to our Company from July 1, 2025.

Unusual or infrequent events of transactions

Other than as described below and elsewhere in this Red Herring Prospectus, to our knowledge, there have been no other events or transactions that, may be described as "unusual" or "infrequent" and which materially affect or are likely to affect our revenue from operations.

Seasonality of business

Our operations may be adversely affected by unfavorable working conditions due to high temperatures during summer months and rain during monsoon that can impede our ability to carry on operations at our Mines and fully utilize our resources, particularly during the first two quarters of a financial year. During periods of reduced activity due to unfavorable weather conditions, we may continue to incur operating expenses, but our revenues from operations may be reduced or its accrual may be delayed. Although such adverse weather conditions do not typically have a material impact on our revenue from operations, abnormally hot summer months or monsoon months could have a material impact. For further details, see "Risk Factors-Our operations may be affected by changes in weather conditions and adverse weather conditions may have a material impact on our operations. " on page 62.

Known trends or uncertainties

Our business has been affected and we expect will continue to be affected by the trends identified above in "—Significant Factors Affecting Our Financial Condition and Results of Operations" and the uncertainties described in "Risk Factors on pages 419 and 32, respectively. To our knowledge, except as described or anticipated in this Red Herring Prospectus, there are no known factors which we expect will have a material adverse impact on our revenues or income from continuing operations.

Future relationship between cost and income

Other than as described in this Red Herring Prospectus, to the knowledge of our management, there are no known factors that might affect the future relationship between costs and revenues.

New products or business segments

Other than as described in "Our Business" beginning on page 242, there are no plans to introduce any new products or business segments in the near future which are likely to materially affect our revenue from operations or profitability.

Significant dependence on a single or few customers

While we have a wide client base, a significant portion of our revenue is derived from certain key customers. For further details, see "Risk Factors-We depend on certain key customers for a significant portion of our revenue from operations, with our top 10 customers contributing 69.77%, 69.55%, 48.37% and 53.51% of our revenue from operations in three- month period ended June 30, 2025 and Fiscals 2025, 2024 and 2023, respectively. A decrease in the revenue we earn from such customers could adversely affect our business, results of operations, cash flows and financial condition" on page 40.

Competition

For information on our competitive conditions and our competitors, see "Risk Factors, "Industry Overview" and "Our Business" beginning on pages 32, 173 and 242, respectively.

Significant Developments after June 30, 2025 that may affect our future results of operations

Except as disclosed elsewhere in this Red Herring Prospectus, to our knowledge, no circumstances have arisen since June 30, 2025 that materially and adversely affect or are likely to affect our operations, trading or profitability, or the value of our assets or our ability to pay our liabilities within the next 12 months.