NAPS Global India Ltd Management Discussions

You should read the following discussion and analysis of financial condition and results of operations together with our financial statements included in this Draft Prospectus. The following discussion relates to our Company and is based on our restated financial statements. Our financial statements have been prepared in accordance with Indian GAAP, the accounting standards and other applicable provisions of the Companies Act.

Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "Forward looking statement" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to our operations include, among others, economic conditions affecting demand/supply and price conditions in domestic and overseas market in which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental factors.

BUSINESS OVERVIEW

Our Company is a wholesale importer of textile products and acts as a well-established player in the garment manufacturing supply chain in Maharashtra, India. We primarily import cotton and man-made fabrics from manufacturers in China and Hongkong in bulk quantities and provide timely supply to vendors of large garment manufacturing companies in Maharashtra, India.

Our Companys proficiency lies in understanding the specific requirement of our customers and based on which we procure fabrics with trendy colour combination, designs, clothing material and quality. Our business is predominantly conducted on a business-to-business model basis. We contend that our efforts to provide a one-stop shop for all of our customers needs in our product line, together with our competitive pricing derived from our understanding of the local market, thoughtful product selection, efficient supply chain management and timely delivery, have contributed to our expansion and success.

Our total income as restated were 4,788.30 lakhs, 2,600.75 lakhs, 1,348.42 as at March 31, 2024, March 31, 2023 and March 31, 2022 respectively. Further, Our Profit after Tax had been recorded at 145.22 lakhs, 27.17 lakhs, and

18.26 as at March 31, 2024, March 31 2023 and March 31 2022.

Significant Developments after March 31, 2024 that may affect our Future Results of Operations

The Directors confirm that there have been no events or circumstances since the date of the last financial statements as disclosed in the Draft Prospectus which materially or adversely affect or is likely to affect the profitability of our Company, or the value of our assets, or our ability to pay liabilities within next twelve months.

RECENT DEVELOPMENT

Impact of COVID-19

The pandemic outbreak has caused an economic downturn on a global scale, including closures of many businesses and reduced consumer spending, as well as significant market disruption and volatility. The demand for our draft products is dependent on and directly affected by factors affecting industries where our products are supplied. Despite the impact of the COVID-19 Pandemic, our revenue from operations for the Fiscal 2023 and for Fiscals 2022 was Rs. 2,589.26 lakhs and Rs. 1,334.40 lakhs respectively. We continue to closely monitor the impact that COVID-19 may have on our business and results of operations. It is difficult for us to predict the impact that COVID-19 will have on us, our customers or suppliers in the future.

FACTORS AFFECTING OUR RESULT OF OPERATIONS

Economic conditions in the markets in which we operate

Our results of operations are dependent on the overall economic conditions in the markets in which we operate, including India. Any change in macro-economic conditions in these markets, including changes in interest rates, government policies or taxation and political, economic or other developments could affect our business and results of operations. The textile sector in India may perform differently and be subject to market and regulatory developments that are dissimilar to the markets in other parts of the world. While stronger international economic conditions tend to result into higher demand for our products, weaker economic conditions tend to result into lower demand. Change in demand in the market segments we currently supply or improvement/deterioration in the market or a change in regulations, customs, taxes or other trade barriers or restrictions could affect our operations and financial condition.

Loss of any of our suppliers or a failure by our suppliers to deliver some of our primary raw materials

The loss of any of our suppliers or a failure by our suppliers to deliver our products such as fabrics and garments can have significant consequences for our business. Without a reliable supply of our materials, we may experience difficulties in meeting customer demand and fulfilling our commitments. This could result in dissatisfied customers, potential loss of business, and damage to our reputation. In addition, if we are forced to find alternative suppliers or sources for our products, it may result in increased costs, longer lead times, and potential compromises in quality or specifications. This can have a negative impact on our profitability and operational efficiency. To mitigate these risks, it is crucial for us to have contingency plans in place, such as maintaining relationships with multiple suppliers, regularly assessing their reliability, and exploring options for local sourcing or production. By implementing these measures, we aim to minimize the potential impact of supplier loss or failure on our business operations.

Our ability to successfully implement its strategy and its growth and business expansion plans

Our revenue and our business operations have grown in recent years. Although we plan to continue to expand our scale of operations, we may not be able to sustain these rates of growth in future periods due to a number of factors, including, among others, our execution capability, our ability to retain, maintain relation with our stake holders, our ability to maintain customer satisfaction, our ability to mobilize sufficient working capital, macroeconomic factors beyond our control such as decline in global economic conditions, availability of cheaper domestic products / brands, competition within each product category from players in the organized and unorganized segments, the greater difficulty of growing at sustained rates from a larger revenue base, our inability to control our expenses and the availability of resources for our growth. There can be no assurance that we will not suffer from capital constraints, operational difficulties or difficulties in expanding existing business operations. Our strategy and revenue plan may not work and might have adverse affect on financials.

Pricing Strategy

Pricing our products presents a complex task in our fabrics wholesale business. It is essential to consider the competitive pricing in the market, along with the cost of goods and transportation and customs expenses. To determine our pricing, we have conducted thorough cost analyses and studied our target markets sensitivity to pricing. Regularly reviewing and adjusting our pricing strategy based on market dynamics, such as competitor pricing and customer feedback, has been pivotal in remaining competitive and ensuring profitability.

Significant Accounting Policies

(a) Basis of Preparation of Restated Financial Statements:

"These financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) in India under the historical cost convention on the accrual basis of accounting. These financial statements have been prepared to comply in all material aspects with the accounting standards specified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and other relevant provisions of the Companies Act, 2013 (hereinafter together referred to as the Act) and Schedule III of the Act.

The restated financial information has been prepared for inclusion in the Draft Prospectus (DP)/ Prospectus (P) to be filed by the Company with the Securities and Exchange Board of India (‘SEBI) in connection with proposed Initial

Public Offering of its equity shares of face value of Rs 10 each of the Company comprising a fresh issue of equity shares and offer for sale of equity shares held by the certain existing shareholders (the "Offer"), in accordance with the requirements of:

(i) Section 26 of part I of Chapter III of the Act

(ii) Relevant provisions of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements Regulations, 2018, issued by the Securities and Exchange Board of India (SEBI) as amended in pursuance of the Securities and Exchange Board of India Act, 1992; and

(iii) Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India ("ICAI").

The Restated financial information has been compiled from:

The audited financial statement of the Company as at March 31, 2024 which have been approved by the Board of Directors at their meeting held on August 14, 2024.

The audited financial statement of the Company as at March 31, 2023 which have been approved by the Board of Directors at their meeting held on September 05, 2023.

The audited financial statement of the Company as at March 31, 2022 which have been approved by the Board of Directors at their meeting held on September 03, 2022.

There were no qualifications in the Audit Reports issued by Statutory Auditor(s) for the period ended on March 31, 2024, March 31, 2023, and March 31, 2022

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year."

(b) Use of estimates and judgements:

The preparation of financial statements inconformity with the generally accepted accounting principles requires the Management to make estimates, judgements and assumptions that affect the reported balances of assets and liabilities as on the date of financial statements and the reported amounts of revenues and expenses for the reported period. Changes in estimates are recognized in the period in which the estimates are revised and if material, their effects are disclosed in the notes to the financial statements.

(c) Going Concern

The financial accounts of the Company are prepared on the assumption of going concern concept.

(d) Current versus non-current classification

"The Company presents assets and liabilities in the Balance Sheet based on current/ non-current classification.

An asset is classified as current when it satisfies any of the following criteria:

It is expected to be realized or intended to be sold or consumed in normal operating cycle It is held primarily for the purpose of trading It is expected to be realized within twelve months after the reporting period, or

Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period Current assets include the current portion of non-current financial assets.

All other assets are classified as non-current.

A liability is current when it satisfies any of the following criteria:

It is expected to be settled in normal operating cycle It is held primarily for the purpose of trading

It is due to be settled within twelve months after the reporting period, or

There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

Current liabilities include the current portion of long term financial liabilities. The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities. The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle."

(e) Inventories:

"Inventories are carried at the lower of cost or net realisable value. Cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. In determining the cost, FIFO method is used. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. The proportionate amount of additional duty of customs paid on finished goods imported for trading and lying unsold as at the year ended has been included in the value of the finished goods stock. The comparison of cost and net realisable value is made on an item-by-item basis"

(f) Property, Plant and Equipment

Fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any. The cost of an item of property, plant and equipment comprises its acquisition price, including import duties and other non-refundable taxes or levies, any directly attributable cost of bringing the asset to its working condition for its intended use, pre-operative expenses including financial charges and adjustments on account of foreign exchange fluctuations, wherever applicable; any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditures related to an item of fixed asset should be capitalised only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance otherwise expenditure should be written off.

(g) Depreciation and Amortisation:

"Depreciation on property, plant and equipment is provided on written down value method over the useful lives of assets estimated by the management which are equal to the useful lives prescribed under Schedule II of the Companies Act, 2013 . The useful lives estimated by the management are mentioned below:

Furniture and fixtures : 10 years Electrical fitting and fixing : 5 years

Computer and related equipment : 3 years, Motor Vehicle :10 years, Office Equipment : 5years

Plant & Machineries have been depreciated over a period of 10 years which is the economic useful life of those machineries as per management. Leasehold improvements is amortised on a straight line basis over the remaining period of the lease or the economic useful life, whichever is lower.

The useful lives are reviewed by the management periodically and revised, if appropriate. In case of a revision, the unamortized depreciable amount is charged over the revised remaining useful life. Depreciation is provided on a pro-rata basis i.e. from the date on which asset is ready for use. Property, Plant and Equipment is eliminated from the financial statements on disposal or when no further benefit is expected from its use and disposal."

(h) Intangible assets

"Intangible assets that are acquired by the company are measured initially at cost. After initial recognition, an intangible asset is carried at its cost less any accumulated amortisation and accumulated impairment loss (if any).

Subsequent expenditure is capitalised only when it increases the future economic benefits to the specific assets to which it relates.

Intangible assets are amortised in Statement of Profit and Loss over their estimated useful lives, from the date that they are available for use based on the expected pattern of consumption of economic benefits of the assets. Accordingly, at present these are being amortised on written down value method over a period of three years based on the useful economic life.

Amortisation method and useful lives are reviewed at each reporting date. If the useful life of an asset is estimated to be significantly different from previous estimates, the amortisation period is changed accordingly. If there has been a significant change in the expected pattern of economic benefits from the asset, the amortisation method is changed to reflect the changed pattern. An intangible asset is derecognized on disposal or when no future economic benefit is expected from its use and disposal.

Losses arising from retirement and gains or losses arising from disposal of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the assets, and are recognised in the Statement of Profit and Loss."

(i) Recognition of Revenue and Expenses

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must be also met before revenue is recognized:

(j) Sale of goods:

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of goods have passed to the buyer under the terms of the contract.

(k) Interest Income:

(i) Revenue from interest on Fixed Deposits is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate.

(ii) Revenue from Interest on Vendors is recognized on a time proportion basis taking into account the amount outstanding from debtors for usage period of goods and the rate applicable as per the terms of the contract.

(iii) Interest received on loans given have been recognized on receipt basis (if any).

(l) Expenses:

Expenses are accounted for on accrual basis and provision is made for all known losses and expenses.

(m) Investments:

Investments which are readily realizable and intended to be held for not more than one year from the date of which such investments are made, are classified as current investments. All other investments are classified as long-term investments. The Company holds no investments during the year.

(n) Transactions in foreign currency:

Foreign exchange transactions are recorded at the exchange rates prevailing on the date of such transactions. Realized gains and losses on foreign exchange transactions during the year are recognized in the statement of profit and loss. Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date. The resultant exchange differences are recognized in the statement of profit and loss.

(o) Segment Reporting:

The Company operates in a single primary business segment . Hence, there are no reportable segment as per AS 17 Segment Reporting.

(p) Earnings per share:

Basic Earnings per Share (EPS) is computed by dividing the net profit after tax for the year attributable to the equity shareholders by the weighted average number of shares outstanding during the year. The Company does not have any potentially dilutive securities in any of the years presented to calculate diluted EPS and hence the diluted EPS is the same as basic EPS.

(q) Accounting for taxes on Income

Tax expense comprises current and deferred tax.

(i) Current Tax:

Current Tax expense is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date.

(ii) Deferred Tax:

Deferred income tax reflects the impact of timing differences between taxable income and accounting income during the current year and reversal of timing differences for the earlier years. Deferred Tax is measured using the tax rates and tax laws used enacted or substantively enacted at the reporting date.

Deferred tax liabilities are recognized for all the taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets and deferred tax liabilities are reviewed at each reporting period.

(r) Impairment of Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An Impairment Loss is charged for when an asset is identified as Impaired. The impairment loss recognized in prior accounting period is reversed, if there has been a change in the estimate of recoverable amount. The Company has identified that there are no Assets available whose carrying cost exceeds its recoverable value and hence the Company has not provided for any impairment loss during the year.

(s) Provisions, Contingent liabilities and Contingent assets:

The Company estimates the provisions that have present obligations as a result of past events and it is probable that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates.

The Company uses significant judgements to disclose contingent liabilities. Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

Contingent assets are neither recognized nor disclosed in the financial statements.

(t) Cash and Cash equivalents:

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage. Cash and cash equivalents for the purpose of cash flow statement comprise of cash at bank and in Hand and short-term bank deposits with original maturity of three months or less.

(u) General:

Accounting policies not specifically referred to, are consistent with the Indian Generally Accepted Accounting Principles and are followed consistently.

RESULTS OF OUR OPERATIONS

( in lakhs)

Particulars	Year March 2024 ended 31,	% of Total Income	Year ended March 31, 2023	% of Total Income	Year ended March 31, 2022	% of Total Income
Income
Revenue from Operations	4,731.29	98.81%	2,589.26	99.56%	1,334.40	98.96%
Other Income	57.01	1.19%	11.49	0.44%	14.02	1.04%
Total Income (I+II)	4,788.30	100.00%	2,600.75	100.00%	1,348.42	100.00%
Expenses
Purchase of Stock-in-Trade	4,504.96	94.08%	2,485.31	95.56%	1,203.56	89.26%
Changes in inventories	(2.94)	-0.06%	(36.29)	-1.40%	19.01	1.41%
Employee Benefits Expense	59.61	1.24%	60.76	2.34%	44.15	3.27%
Finance Costs	0.65	0.01%	1.77	0.07%	2.78	0.21%
Depreciation & Amortisation expenses	7.86	0.16%	8.36	0.32%	11.95	0.89%
Other Expenses	38.11	0.80%	36.78	1.41%	41.51	3.08%
Total Expenses	4,608.25	96.24%	2,556.68	98.31%	1,322.96	98.11%
Profit/(loss) before
Exceptional Items and Tax	180.05	3.76%	44.07	1.69%	25.47	1.89%
(III-IV+V)
Exceptional Items	-	-	-	-	-	-
Profit/(loss) before Tax (VI- VII)	180.05	3.76%	44.07	1.69%	25.47	1.89%
Tax Expense
Current Tax	35.50	0.74%	12.07	0.46%	7.11	0.53%
Short/Excess Income Tax	-	0.00%	5.75	0.22%	1.78	0.13%
Deferred Tax	(0.68)	-0.01%	(0.91)	-0.03%	(1.68)	-0.12%
Total Tax Expense	34.82	0.73%	16.90	0.65%	7.21	0.53%
Profit/(loss) after Tax (VIII- IX)	145.22	3.03%	27.17	1.04%	18.26	1.35%

Main Components of our Profit and Loss Account

Income

Our total income comprises of revenue from Sale of Products and other income.

Revenue from Operations

Our revenue from operations as a percentage of total income was 98.81%, 99.56% and 98.96% for the year ended March 31, 2024, March 31, 2023, and March 31, 2022 respectively.

Other Income

Our other income comprises of interest income, foreign fluctuation income, gain on securities and dividend incomes. Other income, as a percentage of total income was 1.19%, 0.44%, and 1.04% for the year ended March 31, 2024, March 31, 2023 and March 31, 2022 respectively.

Expenditure

Our total expenditure primarily consists of purchases of stock-in-trade, employee benefit expenses, finance cost, depreciation expenses and other expenses.

Purchase of stock

Our purchase of stock in trade for the year ended March 31, 2024, March 31, 2023 and March 31, 2022 was 4,504.96 lakhs, 2,485.31 lakhs, 1,203.56 lakhs which was 94.08%, 95.56%, 89.26% of our total income for the same period.

Changes in inventories of stock in trade for the period ended March 31, 2024, March 31, 2023 and March 31, 2022 was

(2.94) lakhs, (36.29) lakhs, 19.01 lakhs which was (0.06)%, (1.40)%, 1.41% respectively of our total income for the same period.

Employee Benefit Expenses

Our employee benefit expenses for the period ended March 31, 2024 and March 31, 2023 and March 31, 2022 was 59.61 lakhs, 60.76 lakhs, 44.15 lakhs which was 1.24%, 2.34%, 3.27% respectively of our total income for the same period.

Depreciation and Amortization Cost

Our depreciation and amortization for the period ended March 31, 2024, March 31, 2023 and March 31, 2022 was 7.86 lakhs, 8.36 lakhs and 11.95 lakhs which was 0.16%, 0.32%, 0.89% of our total income for the same period.

Finance costs

Our Finance costs for the period ended March 31, 2024, March 31, 2023 and March 31, 2022 was 0.65 lakhs, 1.77 lakhs, 2.78 lakhs which was 0.01%, 0.07%, 0.21% of our total income for the same period.

Other Expenses

Our other expenses for the period ended March 31, 2024, March 31, 2023 and March 31, 2022 was 38.11 lakhs, 36.78 lakhs, 41.51 lakhs which was 0.80%, 1.41% and 3.08% of our total income for the same period. Our other expenses primarily are bank charges, professional fees, statutory payments, electricity charges and repairs and maintenance.

Provision for Tax

Our current tax expenses for the period ended March 31, 2024, March 31, 2023, March 31, 2022 was 34.82 lakhs, 16.90 lakhs and 7.21 lakhs respectively which was 0.73%, 0.65%, 0.53% of our total income for the same period.

Profit for the ended

Our profit for the year ended March 31, 2024, March 31, 2023 and March 31, 2022 was 145.22 lakhs, 27.17 lakhs, 18.26 lakhs which was 3.03%, 1.04%, 1.35% of our total income for the same period

Factors that have led to rise in turnover and profit year by year from Fiscal 2022 to Fiscal 2024-

Better Inventory management- Our Company has been able to maintain optimal level of inventory and with rise in turnover, the closing stock as a percentage of revenue was at minimal level of 1.85 % in Fiscal 2024 as compared to 3.27% in Fiscal 2023 and 3.62% in Fiscal 2022. This has led to better management of fund and utilizing it for increasing scale of business.

(Rs in lakhs)

Particulars	F.Y 2023-24	F.Y 2022-23	F.Y 2021-22
Inventories at the year end	87.56	84.62	48.32
Revenue from Operation	4,731.29	2,589.26	1,334.40
Inventory as a % of
	1.85%	3.27%	3.62%
Revenue

Strong supplier network- Our Company has been able to identify reliable suppliers and has developed a great relationship with them enabling a smooth business flow along with better pricing and higher percentage of discounts as compared to our competitors.

(Rs in lakhs)

	F.Y 2023-24		F.Y 2022-23		F.Y 2021-22
Particulars	Purchases	Percentage (%)	Purchases	Percentage (%)	Purchases	Percentage (%)
Purchases from Top 10 Supplier	3,632.36	91.82%	1,811.79	84.16%	1,100.17	99.81%

Reach in PAN India- Over the years we have focused & penetrated in local markets of Maharashtra where we get better value for our products. Further, our Company is expanding its network outside the area of Maharashtra with a vision to reach PAN India. This has led to increase in our revenue & profit.

(Rs in lakhs)

States of INDIA	FY 23-24	Percentage %	FY 22-23	Percentage %	FY 21-22	Percentage %
Maharashtra	4,517.46	95.48%	2,206.81	85.23%	1,095.44	82.09%
Other than	213.84	4.52%	382.44	14.77%	238.96	17.91%
Maharashtra Total	4,731.29	100.00%	2,589.26	100.00%	1,334.40	100.00%

Increase in demand and profit margin of our products-

(Rs in lakhs)

Particulars	For the year ended March 31,
	2024	2023	2022
Revenue from Operation	4,731.29	2,589.26	1,334.40
Profit after tax	145.22	27.17	18.26
Profit margin	3.07%	1.05%	1.37%

Fiscal 2024 compared with fiscal 2023

Income

In fiscal 2024, our revenue increased by 2,142.03 lakhs or 82.73%, from 2,589.26 lakhs in fiscal 2023 to 4,731.29 lakhs in fiscal 2024. The increase in the year 2024 was due to increase in the demand of our products, better order management, better pricing and availability as compared to last year.

Other income increased by 45.52 lakhs or 396.17%, from 11.49 lakhs in fiscal 2023 to 57.01 lakhs in fiscal 2024 mainly due to gain on sale of securities.

Purchase of stock

Purchases increased by 2,019.65 lakhs or 81.26%, from 2,485.31 lakhs in Fiscal 2023 to 4,504.96 lakhs in Fiscal 2024 as we purchased bulk quantity of stock to meet the requirement of sales as per the demand.

Change in Inventories

Change in Inventories were (2.94) lakhs in fiscal 2024 as compared to (36.29) Lakhs in fiscal 2023.

Employee Benefit Expenses

Employee Benefit Expenses decreased by (1.15) lakhs or (1.89)%, from 60.76 lakhs in fiscal 2023 to 59.61 lakhs in fiscal 2024. This decrease was mainly due to decrease in salary expenses.

Finance Costs

Finance Costs decreased by 1.12 lakhs or 63.28%, from 1.77 lakhs in fiscal 2023 to 0.65 lakhs in fiscal 2024. This decrease was mainly due to decrease in borrowing from bank through repayment which reduced our interest cost during the year.

Depreciation Expenses

Depreciation expenses were 7.86 lakhs in fiscal 2024 as compared to 8.36 Lakhs in fiscal 2023.

Other Expenses

Other expenses decreased by 1.33 lakhs or 3.62% from 36.78 lakhs in Fiscal 2023 to 38.11 lakhs in fiscal 2024. The decrease was due to economies of scale achieved with increase in turnover and decrease in commission expenses during the year.

Profit/ (Loss) before Tax

The increase in scale of operations has led to increase in our Profit before tax by 135.98 lakhs or 308.55% from 44.07 lakhs in fiscal 2023 to 180.05 lakhs in fiscal 2024.

Tax Expenses

The Companys tax expenses had increased by 17.92 lakhs from 16.90 lakhs in Fiscal 2023 to 34.82 lakhs in the Fiscal 2024 as tax liability increases with rise in profits earned during the year.

Profit/ (Loss) after Tax

After accounting for taxes at applicable rates, our Profit after Tax increased by 118.06 lakhs or 434.49%, from 27.17 lakhs in fiscal 2023 to 145.22 lakhs in fiscal 2024.

Fiscal 2023 compared with fiscal 2022.

Income

In fiscal 2023, our revenue increased by 1254.86 lakhs or 94.04%, from 1,334.40 lakhs in fiscal 2022 to 2,589.26 lakhs in fiscal 2023. With the rise in demand of fabrics and market rising and moving strongly upward after covid, sales of our Company has increased in same graph.

Other income decreased by 2.53 lakhs or 18.03 %, from 14.02 lakhs in fiscal 2022 to 11.49 lakhs in fiscal 2023.

Purchase of stock-in-trade

Purchases increased by 1,281.74 lakhs or 106.50%, from 1,203.56 lakhs in Fiscal 2022 to 2,485.31 lakhs in Fiscal 2023 due to increase in purchases to with the increase in sales to cater the demand.

Change in Inventories

Change in Inventories was (36.29) lakhs in fiscal 2023 as compared to 19.01 lakhs in fiscal 2022.

Employee Benefit Expenses

Employee Benefit Expenses increased by 16.61 lakhs or 37.62 %, from 44.15 lakhs in fiscal 2022 to 60.76 lakhs in fiscal 2023 due to increase in salaries expenses of our employees.

Finance Costs

Finance Costs decreased by 1.01 lakhs or 36.33%, from 2.78 lakhs in fiscal 2022 to 1.77 lakhs in fiscal 2023 with repayment of loan.

Depreciation Expenses

Depreciation expenses were 8.36 lakhs in fiscal 2023 as compared to 11.95 lakhs in fiscal 2022.

Other Expenses

Other expenses decreased by 4.73 lakhs or 11.39% from 41.51 lakhs in Fiscal 2022 to 36.78 lakhs in fiscal 2023. During Fiscal 2022 we booked significant amount of brokerage and commission expenses for the increase in scale of operations, thereby its expenses increased as compared to Fiscal 2023.

Profit/ (Loss) before Tax

The increase in revenue from operations has led to increase in our Profit before tax by 18.60 lakhs or 73.03% from 25.47 lakhs in fiscal 2022 to 44.07 lakhs in fiscal 2023.

Tax Expenses

The Companys current tax expenses had increased by 9.69 lakhs or 134.40% from 7.21 lakhs in Fiscal 2022 to 16.90 lakhs in the Fiscal 2023 due to increase in profit before tax.

Profit/ (Loss) after Tax

After accounting for taxes at applicable rates, our Profit after Tax increased by 8.91 lakhs or 48.80 %, from 18.26 lakhs in fiscal 2022 to 27.17 lakhs in fiscal 2023.

Cash Flows

( in lakhs)

Particulars	For the year ended March 31
	2024	2023	2022
Net Cash from Operating Activities	(39.35)	39.74	1.07
Net Cash from Investing Activities	17.86	(20.32)	(14.34)
Net Cash used in Financing Activities	112.58	(12.42)	(12.42)
Net Increase / (Decrease) in Cash and Cash equivalents	91.09	7.00	(25.69)

Cash Flows from Operating Activities

Net cash from operating activities for the year ended March 31, 2024 was (39.35) lakhs as compared to the PBT of 180.05 lakhs for the same period. This difference is primarily on increase in trade and other receivables, payment of trade and other payables, short term loans and advances and gain on sale of securities.

Net cash from operating activities for the fiscal 2023 was 39.74 lakhs as compared to the PBT of 44.07 lakhs for the same period. This difference is primarily on account of changes in trade and other receivables, change in trade payables and change in inventories.

Net cash from operating activities in fiscal 2022 was 1.07 lakhs as compared to the PBT of 25.47 lakhs for the same year. This difference is primarily on account of changes in trade and other receivables and trade payables.

Cash Flows from Investment Activities

For the year ended March 31, 2024 the net cash generated from investing activities was 17.86 lakhs. This was majorly on account of sale of investments.

In fiscal 2023 the net cash used in investing activities was 20.32 lakhs from purchases of asset and investment.

In fiscal 2022, the net cash used in investing activities was 14.34 lakhs from purchases of asset and investment.

Cash Flows from Financing Activities

Net cash generated from financing activities for the year ending March 31, 2024 was 112.58 lakhs. This was on account of proceeds from right issue of shares.

Net cash used in financing activities in fiscal 2023 was 12.42 lakhs. This was on account of repayment of borrowings and finance cost incurred during the year.

Net cash used from financing activities in fiscal 2022 was 12.42 lakhs. This was on account of repayment of borrowings and finance cost incurred during the year.

OTHER MATTERS

1. Unusual or infrequent events or transactions

Except as described in this Draft Prospectus, during the period/ years under review there have been no transactions or events, which in our best judgment, would be considered unusual or infrequent.

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

Other than as described in the Section titled "Financial Information" and chapter titled "Managements Discussion and Analysis of Financial Conditions and Results of Operations" on page no. 127 and 147 respectively of this Draft Prospectus respectively, to our knowledge there are no significant economic changes that materially affected or are likely to affect income from continuing Operations.

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

Other than as described in the chapter titled "Risk Factors" and "Managements Discussion and Analysis of Financial Conditions and Result of Operations" on page no 23 and 147 respectively of this Draft Prospectus respectively, best to our knowledge there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our company from continuing operations.

4. Future relationship between Costs and Income

Other than as described in the chapter titled "Risk Factors" on page no. 23 of this Draft Prospectus, best to our knowledge there are no factors, which will affect the future relationship between costs and income or which are expected to have a material adverse impact on our operations and finances.

5. The extent to which material increases in revenue or income from operations are due to increased volume, introduction of new services or increased prices

Increase in revenues is by and large linked to increase in volume of sales and delivering the products to our customers.

6. Status of any publicly announced new services or business segments

Please refer to the chapter titled "Our Business" on page no 87 of this Draft Prospectus.

7. The extent to which the business is seasonal.

Our business is not seasonal in nature.

8. Any significant dependence on a single or few suppliers or customers

For fiscal 2024, the revenue from our top 5 and top 10 customers constituted approximately 63.55% and 78.81% respectively of the revenue from operations. For fiscal 2024, the purchases from our top 5 and top 10 suppliers constituted approximately 77.06% and 91.82% respectively of the purchases. For further details, please refer chapter "Our Business" on page no. 87 of this Draft prospectus.

9. Competition Conditions

We face competition from various domestic players in the market. We compete with other brands on the basis of product range, product quality, and product price including factors, based on reputation, regional needs, and customer convenience. While these factors are key parameters in customers decisions matrix in purchasing goods; product range, product quality and product price is often the deciding factor in most deals. Further, there are no entry barriers in this industry and any expansion in capacity of existing market players would further intensify competition. We expect that our commitment to quality, past record of timely execution and transparency will provide us with an edge over our competitors. Further we believe that our competition also depends on several factors which include changing business framework, competitive price, delivery at given timeline and established relationship with suppliers, brand recognition etc.