Panth Infinity Ltd Management Discussions

This chapter on Managements Discussion and Analysis ("MD&A") is to provide the stakeholders with a greater understanding of the Companys business, the Companys business strategy and performance, as well as how it manages risk and capital.

The following management discussion and analysis is intended to help the reader to understand the results of operation, financial conditions of Panth Infinity Limited.

ECONOMIC OVERVIEW, INDUSTRY STRUCTURE AND DEVELOPMENTS:

WORLD ECONOMY AND JEWELLERY INDUSTRY TRENDS

The global jewelry market demonstrated steady growth in 2024, reaching an estimated size of USD 366.79 billion, according to Grand View Research. The market is projected to expand at a compound annual growth rate (CAGR) of 5.3% from 2025 to 2033, and is expected to reach approximately USD 578.45 billion by 2033. In comparison, the market was valued at USD 353.26 billion in 2023, reflecting a growth rate of 4.7% CAGR from 2024 to 2030. The Asia-Pacific region continues to lead the global market, accounting for nearly 60.2% of global market share in 2024.

(Source: Grand View Research - Jewelry Market Size, Share & Trends Analysis Report, 2024)

The demand for jewelry worldwide is being shaped by a confluence of socio-economic and cultural factors. In the Asia-Pacific region, there is a noticeable shift in consumer behavior due to rapid urbanization, increasing disposable incomes, and rising exposure to global fashion and lifestyle trends. Consumers are increasingly seeking innovative designs, modern craftsmanship, and customized jewellery that align with their personal tastes and values.

Countries like India and China are seeing robust growth in gold jewellery consumption, given its enduring cultural relevance and function as a traditional store of value. Additionally, younger demographics are becoming key drivers of growth by favoring minimalist, lightweight, and fashion-forward pieces that cater to everyday wear.

The global jewelry industry is also being reshaped by:

• Digital transformation, which has accelerated the growth of e-commerce platforms and virtual showrooms, offering consumers greater accessibility and convenience.

• A growing emphasis on sustainability and ethical sourcing, particularly among Gen Z and millennial consumers who are concerned with environmental and social impact.

• Increasing integration of technology in jewellery design and retail, such as AI-assisted customization, blockchain for traceability, and augmented reality (AR) tools for virtual try-ons.

• The industry has become more agile in responding to market changes, with players focusing on product innovation, targeted marketing, and localized collections to cater to regional tastes and seasonal demand. Moreover, emerging markets are offering vast potential for expansion, driven by growing middle-class populations, evolving consumption habits, and supportive government policies promoting exports and domestic manufacturing.

INDIAN ECONOMY:

India maintains its prominent global position in the gems and jewellery industry, both as a top manufacturer and exporter. The sector plays a vital role in the Indian economy, contributing significantly to foreign exchange earnings, employment generation, and value-added manufacturing.

As per data released by the Gem and Jewellery Export Promotion Council (GJEPC) and reported by The Economic Times, Indias gems and jewellery exports during April-October 2024 reached:

• Cut and Polished Diamonds: USD 8.31 billion (a decline of 16.56% YoY),

• Total Gold Jewellery (Plain & Studded): USD 5.87 billion (increase of 5.73% YoY),

- Plain Gold Jewellery: USD 2.35 billion (down 4.8%), o Studded Gold Jewellery: USD 3.52 billion (up 14.18%),

• Polished Lab-Grown Diamonds: USD 766.59 million (down 7.9%),

• Silver Jewellery: USD 649.56 million (down 21.30%),

• Platinum Jewellery: USD 99.72 million (up 3.54%).

(Source: The Economic Times, November 2024)

In April 2025, Indias total gems and jewellery exports stood at USD 2.04 billion, marking a 4.62% decline compared to April 2024. Within this, cut and polished diamonds contributed USD 1.11 billion (-6.12%), gold jewellery accounted for USD 684.51 million (-5.41%), lab-grown diamonds were at USD 110.74 million, and silver jewellery exports stood at USD 38.3 million (-12.03%).

(Source: The Economic Times, May 2025)

Despite the short-term decline in overall export volumes, studied gold jewellery and platinum segments have shown resilience, and the industry remains optimistic about future growth driven by improving global demand, government support, and digital transformation.

India continues to be:

• The largest exporter of cut and polished diamonds, holding a 33% share of the global market (2021 data),

• The second-largest gold jewellery consumer globally, with projected demand of 800-900 tonnes in 2024.(Sources: GJEPC; World Gold Council)

The Government of India continues to focus on strengthening the gems and jewellery sector through initiatives such as Make in India, Design in India, and ease of doing business in SEZs. The sector also benefits from policy support aimed at enhancing skill development, technological upgradation, and branding of Indian jewellery in global markets.

The Company is presently engaged in Business of Trading of Precious Metals, Stones & Jewellery. The Company expects that these businesses will persist in the coming years. The Company is a part of an Industry, which largely operates through unorganized constituents. However, unlike the industry, the Company has attempted to operate through as systematic and organized manner as possible. Since, Diamond and Jewellery is one industry, in which India holds commendable position in the world, one can look forward to more international involvement coming up in this industry.

OPPORTUNITY AND THREATS:

? Opportunities

Diamond and Jewellery volumes in India have remained resilient over the years aided by strong cultural affinity or the yellow metal and stable returns from the asset class. The major growth drivers for the industry are:

Certainly! Heres a refined and professional version of the "Opportunities in the Indian Jewellery Market" section, formatted appropriately for inclusion in your Annual Report for FY 2024-25, with all extra commentary removed and sources cited in a concise manner:

Opportunities in the Indian Jewellery Market (2024-25)

The Indian jewellery sector offers multiple growth opportunities driven by evolving consumer preferences, supportive policy initiatives, and emerging global market linkages. Key opportunities include:

> 1. Expansion of Organised Retail

The share of the organised jewellery retail segment has risen significantly, reaching 36-38% in FY 2024, up from 22% in FY 2019. This shift is being driven by growing consumer preference for transparency, certified products, and standardised retail experiences. Organised players are expected to reach a 50% market share by FY 2029. (Source: India Ratings & Research via Economic Times Retail, 2025)

> 2. Growth in Digital and E-commerce Channels

With increasing internet penetration, digital literacy, and changing shopping behaviours, the online jewellery segment is gaining momentum. Features such as virtual try-ons, AI-based customization, and secure digital payments are enhancing customer experience and boosting sales.

(Source: IMARC Group - India Gems & Jewelry Market Report, 2024)

> 3. Rising Demand for Sustainable and Lab-Grown Jewellery

Environmentally conscious consumers, especially in urban markets, are showing growing interest in lab-grown diamonds and sustainable jewellery alternatives. The government has supported this trend by setting up research centers such as the India Centre for Lab-Grown Diamond.

(Source: Ministry of Commerce & Industry; IMARC Group, 2024)

> 4. Increasing Customization and Heritage-Inspired Designs

Consumers are shifting toward personalized, culturally inspired, and lightweight jewellery for everyday wear. There is increasing demand for unique craftsmanship that blends tradition with modern aesthetics.

(Source: IMARC Group - India Jewellery Market Outlook, 2024)

> 5. Boost in Export Opportunities via FTAs

Indias proposed Free Trade Agreement (FTA) with the UK is expected to boost exports of gems and jewellery to the UK to USD 1 billion, with total exports potentially reaching USD 2.5 billion in the near term. New trade opportunities are also emerging in the Middle East.

(Source: Economic Times & Times of India, 2025)

> 6. Government Support and Infrastructure Development

Government initiatives like 100% FDI under the automatic route, duty reductions on precious stones, and infrastructure development projects such as the Bharat Ratnam Mega CFC in SEEPZ and the upcoming India Jewellery Park in Mumbai are expected to enhance manufacturing capacity and export readiness.

(Source: India Brand Equity Foundation - IBEF, 2025)

> 7. Rising Demand from Tier-2 and Tier-3 Cities

Urbanisation and increasing disposable income in smaller towns are driving jewellery demand beyond metros. Retailers expanding into these regions are benefitting from untapped growth potential. (Source: IBEF & Market Research India, 2025)

> Stable asset class

Gold has historically been one of the most stable assets providing investors best returns over a long-term horizon, compared to other assets.

> An essential part of Indian culture

Jewellery in India has traditionally been an integral part of weddings and festivals. Indian customers often purchase contemporary jewellery as a form of self-expression and this has led to evolution of distinct targeted collections including wedding wear, work wear, regular or daily wear and fashion wear as well as very premium limited edition signature collections.

> Increasing affordability

Rapidly expanding economy, increasing urban per capita income and governments focus to double farmers income, huge opportunities will open up with increasing affordability of this segment.

> Rising female workforce

Better job opportunities, rising demand for skilled and professional workforce and rapid urbanization are leading to increasing share of women in workforce. And by virtue of women being the primary consumers of jewellery, their increasing entry into workforce and disposable income are likely to drive the demand, going forward.

More and more benefits and exemptions are likely to come in the way of exports in Special Economic Zones. The Company, having commendable exports and being situated in SEEPZ-SEZ, is likely to receive the advantage of the same.

? Threats

> Rising Labor Costs

Rising labor costs are stagnating the global gems and jewelry industries, and those price increases trickle down to affect the cost of the final product, creating significant challenges to business growth.

> Demand for Sustainability and Traceability

Jewelry shoppers want to know where their purchases come from and who played a role in creating the product. Heightened mindfulness of safe, ethical labor conditions guides purchase decisions in nearly every industry, especially in the fine jewelry market.

> Cheap Competition

The jewelry industry is competitive, with new players entering the market daily. An expanding digital shelf increases access to clientele, but it has also increased the competition for jewelry brands and retailers. Cheaply produced imitation pieces flood the market, attracting shoppers unwilling to invest in artisan pieces.

> Disruption from Digital Technologies

The retail landscape of the jewelry industry is rapidly evolving. A traditional in-store experience has shifted to omnichannel retail, reflecting changing consumer shopping behaviors and preferences. Shoppers want to make essential purchases in person, but the shopping experience begins long before the consumers cross the storefronts threshold.

OUTLOOK:

The Company remains cautiously optimistic about its performance for the financial year 2025-26, despite the uncertain global environment marked by ongoing geopolitical tensions and war-like situations in various regions. Although the Company is not directly engaged in international markets, such global conflicts can impact commodity prices, particularly gold and diamonds, and lead to currency fluctuations that influence the cost and availability of raw materials in the domestic market.

Domestically, the jewellery industry continues to benefit from rising consumer demand, increasing formalization, and growing acceptance of branded and certified jewellery. The Company is committed to capitalizing on these trends by focusing on efficient procurement, streamlined operations, and customer-focused offerings.

We expect to achieve higher growth and market share in the current year keeping in view the evolving geo political situation and macro-economic conditions in India and across the globe.

RISK AND CONCERNS:

While the Company continues to pursue its growth strategy with prudence and focus, several external and internal risks could potentially impact its operations and financial performance. Key risks and concerns identified for the financial year 2025-26 include the following:

1. Unorganised Market Structure

The Indian gems and jewellery sector remains largely unorganised, with a significant portion of trade taking place outside formal retail channels. This fragmented structure poses challenges in terms of pricing discipline, quality standardisation, and consumer trust. While the Company operates in a structured and compliant manner, the influence of unregulated market players may impact overall industry competitiveness and stability.

2. Volatility in Raw Material Prices

The prices of key raw materials—particularly gold, silver, and diamonds—are highly sensitive to global geopolitical events, including ongoing wars and political conflicts in key regions. These events often lead to supply chain disruptions, price volatility, and currency fluctuations, which can adversely affect procurement costs and profit margins, even for companies with a purely domestic focus.

3. Macroeconomic and Policy Risks

Although the Company does not currently operate in global markets, any major shifts in global interest rates, inflationary pressures, or government policy changes in India or key commodity-producing countries may indirectly impact domestic pricing and consumer demand. Rising inflation may reduce discretionary spending on jewellery, while higher interest rates may limit access to consumer credit.

4. Export Exposure (if applicable)

Where applicable, any income from exports exposes the Company to risks related to foreign exchange volatility, changes in trade regulations, or import/export duties. Unfavourable developments in trade relationships or economic policies of importing countries may affect business performance.

5. Increasing Competition

The jewellery industry continues to witness heightened competition from both organised national brands and unorganised local players. In addition, low-cost imitation jewellery, rapid product innovation, and price-driven competition may impact the Companys market share and pricing power.

6. Changing Consumer Preferences

There is a continuous shift in consumer preferences towards lightweight, fashion-forward, and branded jewellery. Failure to anticipate or respond quickly to changing design trends, technology integration (such as virtual try-ons), or digital engagement may affect customer retention and brand relevance.

7. Regulatory and Compliance Risks

With increasing regulatory oversight in the gems and jewellery sector, including mandatory hallmarking, tax compliance (GST), and KYC norms, there is a need for constant adaptation. Non-compliance or delays in adapting to regulatory changes may pose reputational or financial risks.

8. Operational Risks

Dependence on a limited number of skilled artisans or vendors, technological disruptions, inventory mismanagement, or supply chain inefficiencies may hamper the Companys ability to deliver products on time and maintain consistent quality.

9. Natural Disasters and Health Emergencies

Though the impact of COVID-19 has subsided, the Company remains mindful of potential risks arising from future pandemics, natural calamities, or localized disruptions, which can impact manufacturing, logistics, and customer footfall.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has a proper and adequate system of internal controls. This ensures that all transactions are authorized, recorded and reported correctly, and assets are safeguarded and protected against loss from unauthorized use or disposition. In addition, there are operational controls and fraud risk controls, covering the entire spectrum of internal financial controls. An extensive programme of internal audits and management reviews supplements the process of internal financial control framework. Properly documented policies, guidelines and procedures are laid down for this purpose. The internal financial control framework has been designed to ensure that the financial and other records are reliable for preparing financial and other statements and for maintaining accountability of assets.

In addition, the Company has identified and documented the risks and controls for each process that has a relationship to the financial operations and reporting. The Company also has an Audit Committee to interact with the Statutory Auditors, Internal Auditors and Management in dealing with matters within its terms of reference. This Committee mainly deals with accounting matters, financial reporting and internal controls.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The Income from Operation of your Company for the year 2024-25 was decreased to Rs. 2997.38 lakh as against Rs. 472.03 lakh of the previous year. As a result, the Companys Net profit after tax has been Rs. 138.05 lakh for the year 2024-25 as against the Net loss after tax of Rs. 55.18 lakh of the previous year. Your Directors are hopeful to earn rational profit in the years to come.

HUMAN RESOURCES & INDUSTRIAL RELATIONS:

The Company firmly believes that its employees are its most valuable asset and the foundation of its continued success. Our human resources philosophy is centered on fostering a performance-oriented, competency-driven culture built on a strong sense of accountability, integrity, and collaboration.

As of 31st March, 2025, the Company employed 3 (Three) individuals. Despite being a lean team, the collective expertise, dedication, and professionalism of our employees have contributed significantly to achieving the Companys operational and strategic goals.

The Company remains committed to providing a safe, inclusive, and enabling work environment, where every employee is respected, valued, and empowered to deliver their best. We focus on continuous learning and development by facilitating training programs, skill enhancement initiatives, and professional growth opportunities, ensuring that our workforce remains competitive and future-ready.

Our human resource policies are designed to nurture a transparent and harmonious relationship between the management and employees. The Company has maintained cordial industrial relations throughout the year, with open channels of communication and mutual respect forming the backbone of our internal work culture.

Going forward, the Company is focused on attracting, retaining, and rewarding talent to build a motivated workforce capable of supporting long-term business sustainability and growth.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Particulars	F. Y. 2043-25	F. Y. 2023-24
Income From Operations	2,997.38	472.03
Other Income	-	0.36
Total Income	2997.38	472.39
Profit/(Loss) before Exceptional/Extraordinary Items and tax	196.13	-53.03
- Profit/(Loss) on Sale of land	-	-
- Write off Capital WIP		1.96
- Short Term Capital Gain		0.00
Profit/(Loss) Before Tax	196.13	(54.99)
Less: Tax Expenses
- Current Tax	58.20	0.00
- Deferred Tax	0.12	(0.00)
Net Profit/(Loss) After Tax	138.05	(55.18)

REVIEW OF PERFORMANCE

The income from operations of your Company for the financial year 2024-25 is Rs 2,997.37 lakh, as compared to Rs 472.03 lakh in the previous year. As a result, the net profit after tax has increased to Rs 137.81 lakh for the year 2024-25, as against the net loss after tax of Rs 55.18 lakh in the previous year. Your directors are hopeful of achieving more sustainable and rational profits in the years to come.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIO:

Particulars	Numerator	Denominator	31-Mar- 25	31- Mar-24	% Variance	Reason for variance more than 25% / Notes reference
1 Current ratio (in times)	Current assets	Current liabilities	2.92	24.02	(87.84%)	Refer note (a)
2 Debt-Equity ratio (in times)	Total debt = Non-current borrowings + Current borrowings	Total Equity	0.44	NA	NA
3 Debt Service Coverage ratio (in times)	Earnings for debt service = Net profit after taxes + Depreciation + Interest	Debt service = Interest + Principal Repayments	3.17	NA	NA
4 Return on Equity ratio (in %)	Net Profits after taxes - Preference Dividend	Average Shareholders Equity	(0.48%)	0.74%	(164.31%)	Refer note (b)
5 Inventory Turnover ratio (in times)	Revenue from operations	Average inventory	N/A	N/A	N/A
6 Trade Receivable Turnover ratio (in times)	Revenue from operations	Average Trade Receivable	0.80	4.87	(83.66%)	Refer note (c)
7 Trade Payable Turnover ratio (in times)	Net credit purchases	Average Trade Payables	NA	NA	NA
8 Net Capital Turnover ratio (in times)	Revenue from operations	Working capital = Current assets - Current liabilities	0.00	0.01	(70.54%)	Refer note (d)
9 Net Profit ratio (in %)	Net profit	Revenue from operations	(97.78%)	29.87%	(427.30%)	Refer note (e)
10 Return on Capital Employed (in %)	Earnings before interest and taxes	Capital Employed = Tangible Net Worth + Total Debt + Deferred Tax	7.24%	(0.51%)	(1513.55%)	Refer note (f)
11 Return on investment (in %)	Income from Mutual Fund	Average Investment	NA	NA	NA

Note:

(a) The decrease in ration due to increase in current assets during the year.

(b) The decrease in ratio due to decrease in profits in comparison with preceding previous year.

(c) The ratio has decreased due to increase in trade receivables.

(d) The decrease in ratio due to decrease in profits in comparison with preceding previous year.

(e) The decrease in ratio due to decrease in profits in comparison with preceding previous year.

(f) The decrease in ratio due to decrease in profits in comparison with preceding previous year.

1. CAUTIONARY STATEMENT:

Statement in the Management Discussion and Analysis describing the Companys objectives, expectations, estimates or predictions may be forward looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement due to external factor The company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information or events.