You should read the following discussion of our financial condition and results of operations together with our Restated Financial Information which have been included in this Draft Red Herring Prospectus. The following discussion and analysis of our financial condition and results of operations is based on our Restated Financial Information for the six month ended September 30,2024 and the financial years ended March 31, 2024, 2023 and 2022 including the related notes and reports, included in this Draft Red Herring Prospectus prepared in accordance with requirements of the Companies Act and restated in accordance with the SEBI (ICDR) Regulations 2018, which differ in certain material respects from IFRS, U.S. GAAP and GAAP in other countries. Our Financial Information, as restated have been derived from our audited financial information for the respective period and years. Accordingly, the degree to which our Restated Financial Information will provide meaningful information to a prospective investor in countries other than India is entirely dependent on the reader?s level of familiarity with Ind AS, Companies Act, SEBI Regulations and other relevant accounting practices in India. This discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those described under "Risk Factors" and "Forward Looking Statements" on pages 31 and 21 respectively, and elsewhere in this Draft Red Herring Prospectus. Our Financial Year ends on March 31 of each year. Accordingly, all references to a particular Financial Year are to the 12 months ended March 31 of that year.
Business Overview
We are amongst the leading and specialised designers and manufacturers of Mangalsutra in India. (Source: CareEdge Report). We are engaged in designing, manufacturing, and marketing, a varied range of Mangalsutra studded with diverse range of stones including but not limited to, American diamond, cubic zirconia, pearl, mother of pearl, and semi-precious stones, in 18k and 22k purity of gold, to our business-to-business ("B2B") clients. Mangalsutra is a traditional necklace, crafted from gold and black beads worn by married Indian women which symbolizes marital status and is a sacred thread that is believed to bless and extend the life of the spouse. Our Company contributed to around 6% of organized Mangalsutra market in India in CY23 (Source: CareEdge Report).
We supply our products to a diverse range of clients including Corporate Clients, wholesale jewellers, and retailers across the country, more particularly in twenty-four (24) states and four (4) union territories. In addition to serving our domestic clients, we have also expanded our reach to international clients in United Kingdom, New Zealand, UAE, and Republic of Fiji, during the six-month period ending on September 30, 2024, and the previous three Fiscals. We undertake end-to-end operations, from conceptualisation and designing to manufacturing and supply of our products through our integrated operations at our Manufacturing Facility. Our manufacturing facility is spread over area admeasuring 8,300 sq. ft. and is situated at A-3/1, 3rd floor, Todi Estate, Sun Mill Compound, Lower Parel (West), Mumbai 400013, Maharashtra, India ("Manufacturing Facility").
Key Performance Indicators
In evaluating our business, we consider and use certain key performance indicators that are presented below as supplemental measures to review and assess our operating performance. The presentation of these key performance indicators is not intended to be considered in isolation or as a substitute for the Restated Financial Information included in this Draft Red Herring Prospectus. We present these key performance indicators because they are used by our management to evaluate our operating performance. Further, these key performance indicators may differ from the similar information used by other companies, including peer companies, and hence their comparability may be limited. Therefore, these matrices should not be considered in isolation or construed as an alternative to Ind AS measures of performance or as an indicator of our operating performance, liquidity, profitability or results of operation. A list of our KPIs for the period ended September 30, 2024 and the Financial Years ended March 31, 2024, 2023 and 2022 is set out below:
| Particulars | For the six months period ended September 30,2024* | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
| Revenue from | 6,871.35 | 11,015.23 | 9,502.17 | 8,101.87 |
| Operations(1) | ||||
| EBITDA(2) | 497.59 | 507.56 | 388.86 | 300.82 |
| EBITDA Margin(3) (in %) | 7.24% | 4.61% | 4.09% | 3.71% |
| Net Profit after tax (4) | 330.34 | 311.05 | 233.58 | 202.65 |
| Net Profit Margin(5) (in | 4.81% | 2.82% | 2.46% | 2.50% |
| %) | ||||
| Return on Net Worth (6) (in | 21.54% | 25.65% | 24.84% | 29.95% |
| %) | ||||
| Return on Capital | 17.42% | 21.52% | 19.46% | 22.14% |
| Employed(7) (in %) | ||||
| Debt-Equity Ratio(8) | 0.81 | 0.80 | 0.88 | 1.19 |
| Days Working Capital(9) | 67 | 63 | 54 | 56 |
* Not Annualised
As certified by J F Jain & Co., Independent Chartered Accountants pursuant to their certificate dated February 5, 2025.
Notes:
(1) Revenue from operations means the Revenue from Operations as appearing in the Restated Financial Information.
(2) EBITDA means Earnings before interest, taxes, depreciation and amortization expense, which has been arrived at by obtaining the profit/ (loss) before exceptional items and tax for the year/period and adding back finance costs, depreciation, and amortization expense.
(3) EBITDA margin is calculated as EBITDA as a percentage of revenue from operations.
(4) Net Profit after tax represents the restated profits of our Company after deducting all expenses.
(5) Net Profit margin is calculated as restated net profit after tax for the year/period divided by revenue from operations.
(6) Return on Net Worth (%) is calculated as Net Profit after tax attributable to owner of the company, as restated for the end of the year divided by Average Net worth as at the end of the year/period. Average net worth means the average of the net worth of current and previous financial year/period. Net worth means the aggregate value of the paid-up share capital and other equity.
(7) Return on capital employed is calculated as Earnings before interest and taxes divided by average capital employed (average capital employed is calculated as average of the total equity, including non controlling interest, total debt (including borrowings and lease liabilities) and deferred tax liabilities (net of deferred tax assets) of the current and previous financial year/period.
(8) Debt- equity ratio is calculated by dividing total debt by total equity. Total debt represents long term and short term borrowings, including lease liabilities. Total equity includes the aggregate value of the paid-up share capital, other equity and non controlling interest.
(9) Days Working Capital is arrived at by dividing working capital (current assets excluding cash and cash equivalents less current liabilities excluding short term borrowings and current lease liabilities) by revenue from operations multiplied by the number of days in the year/period (365/182).
SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL PERIOD
In the opinion of the Board of Directors of our Company, since the date of the last financial information disclosed in this Draft Red Herring Prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the business activities or profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months, except as disclosed below:
On November 29 2024, Clause V(a) of the Memorandum of Association was amended to reflect the increase in authorised share capital from 100,000,000 divided into 10,000,000 Equity shares of 10 each to 1,000,000,000 divided into 100,000,000 Equity shares of 10 each.
Pursuant to the approval of shareholders granted in the extra-ordinary General meeting held on November 30 2024, the company issued and allotted fully paid up bonus shares on November 30 2024, at par in proportion of seven new equity shares of 10 each for every one existing fully paid up equity shares of 10 each held.
Pursuant to the approval of Board granted in the Board meeting held on November 28 2024, the company reissue and allotted fully paid up Forfeited Shares on November 28 2024, at 192 per equity share including a premium of 182 per equity share to Mr. Chetan Natvarlal Thadeshwar.
On November 30 2024, Clause I of the Memorandum of Association was amended to reflect the change in the name of our Company from ‘Shringar House of Mangalsutra Private Limited? to ‘Shringar House of Mangalsutra Limited pursuant conversion of our Company from private limited company to public limited company.
The Board approved and passed resolution on December 19, 2024 and the shareholders approved and passed special resolution on December 20, 2024 to authorize the Board of Directors to raise funds by making Initial Public Offering.
FACTORS AFFECTING OUR RESULTS OF OPERATIONS
Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factors" on page 31. Our results of operations and financial conditions are affected by numerous factors including the following:
We derive our revenue from sale of Mangalsutras through our retailers, wholesalers and Corporate Clients. However, a significant portion of our revenue from operations is derived from the sale of our products to a limited number of our Corporate Clients.
We manufacture single product i.e. Mangalsutras in varied designs and therefore may face loss of revenue and business owing to any reduction in demand and/or sale of our product.
Our business requires a substantial amount of working capital, primarily to finance the purchase of raw material.i.e., gold, which require immediate payment. However, our clients include retailers, wholesalers and Corporate Clients, to whom we need to provide an average credit period of approximately 15-25 days, thus affecting our working capital requirement. Our working capital requirements may increase due to any longer payment schedules for our clients and also due to shorter credit period from our suppliers.
We do not enter into any long-term contracts with our suppliers of bullion. Any major disruption to the timely and adequate supply of bullion to us could adversely affect our business, results of operations and financial condition
Our single Manufacturing Facility is located at A-3/1, 3rd floor, Todi Estate, Sun Mill Compound, Lower Parel (West), Mumbai 400013, Maharashtra, India. Our business is vulnerable to regional conditions and economic downturns in the region. Any unforeseen events or circumstances that negatively affect this area could adversely affect our sales and profitability.
BASIS OF PREPARATION, MEASUREMENT AND SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies adopted in the preparation of our Restated Financial Information is set forth below. This note provides a list of the significant accounting policies adopted in the preparation of these Ind AS financial information. Accounting policies have been consistently applied except where a newly issued Indian Accounting Standard is initially adopted or a revision to an existing Indian Accounting Standard requires a change in the accounting policy hitherto in use.
1.1 Basis of preparation
These financial information are prepared in accordance with Indian Accounting Standards (Ind AS) and the provisions of the Companies Act, 2013 (‘the Act?) (to the extent notified). The Ind AS are prescribed under Section
133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.
The Companys financial statements upto and for the year ended 31 March 2023 were prepared in accordance with the Companies (Accounting Standard) Rules, 2021 (as emended) notified under Section 133 of the Act and other provisions of the Act (‘Indian GAAP? or ‘Previous GAAP?).
The Company has voluntarily adopted all the relevant Ind AS standards and the first time adoption was carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Sec 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the Previous GAAP and an explanation of how the transition to Ind AS has affected the previously reported financial position, financial performance and cash flows of the Company is provided in note 41.
These Restated Financial Information have been prepared by the Management of the Company ("Management") in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended from time to time, ("ICDR Regulations") for the purpose of inclusion in this Draft Red Herring Prospectus ("DRHP") and the Prospectus in connection with the proposed initial public offering of equity shares of face value of 10 each of the Company comprising a fresh issue of equity shares (the
"Issue"). These Restated Financial Information have been prepared by the Company to comply in all material respects with the requirements of:
a. Section 26 of Part I of Chapter III of the Companies Act, 2013 as amended ("the Act"); b. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations,
2018, as amended (the "ICDR Regulations"); and c. The Guidance Note on Reports in Company Prospectus (Revised 2019) issued by the Institute of Chartered
Accountants of India, as amended (the "Guidance Note")
The Ind AS financial statements are presented in Indian Rupees () which is also the Company?s functional currency and all amounts have been rounded off to the nearest Million, unless otherwise stated.
1.2 Basis for Measurement
The financial statements have been prepared on a historical cost convention and on an accrual basis, except for the following:
i. Certain financial assets and liabilities that are qualified to be measured at fair value (refer accounting policy on financial instruments);
ii. Employee benefits where plan asset is measured at fair value less present value of defined benefit obligations ("DBO").
1.3 Use of estimates and judgements
The preparation of the financial statements in conformity with Ind AS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes:
I. Contingent liabilities: Contingent liabilities are not recognised in the financial statements but are disclosed in the notes. They are assessed continually to determine whether an outflow of resources embodying economic benefits has become probable. If it becomes probable that an outflow of future economic benefits will be required for an item previously dealt with as a contingent liability, a provision is recognised in the financial statements of the period in which the change in probability occurs (except in the extremely rare circumstances where no reliable estimate can be made).
II. Income taxes: Significant judgements are involved in determining the provision for income taxes, including the amount expected to be paid or recovered in connection with uncertain tax positions.
III. Impairment of financial assets: The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost.
IV. Measurement of defined benefit obligations: Key actuarial assumptions used for actuarial valuation.
V. Property, plant and equipment: Useful life of asset.
VI. Other estimates: The preparation of financial statements involves estimates and assumptions that affect the reported amount of assets, liabilities, disclosure of contingent liabilities at the date of financial statements and the reported amount of revenues and expenses for the reporting period. Specifically, the Company estimates the probability of collection of accounts receivable by analyzing historical payment patterns, customer concentrations, customer creditworthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances may be required.
1.4 Measurement of Fair Value
Some of the Company?s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.
Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
1.5 Current and non-current classification
The Company presents assets and liabilities in the balance sheet based on current/non-current classification.
An asset is treated as current when it is:
1. Expected to be realised or intended to be sold or consumed in normal operating cycle;
2. Held primarily for the purpose of trading;
3. Expected to be realised within twelve months after the reporting period; or
4. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
1. It is expected to be settled in normal operating cycle;
2. It is held primarily for the purpose of trading;
3. It is due to be settled within twelve months after the reporting period; or
4. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
All other liabilities are classified 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.
1.6 Property, plant and equipment
Property, plant and equipment including Investment Properties are stated at cost less accumulated depreciation and impairment, if any.
Cost of an item of property, plant and equipment comprises its purchase price including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the items to its working condition for its intended use and estimated cost of dismantling and removing the item and restoring the site on which it is located.
Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. Repairs and maintenance costs are recognised in the statement of profit and loss when incurred. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognised in the statement of profit and loss. Assets to be disposed off are reported at the lower of the carrying value or the fair value less cost to sell.
Machinery spares which can be used only in connection with an item of Property, plant and equipment and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure on property, plant and equipment after its purchase / completion is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.
The estimated useful life of the tangible assets and the useful life are reviewed at the end of each financial year and the depreciation period is revised to reflect the changed pattern, if any.
Transition to Ind AS
On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment recognised as at 1 April 2022 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.
1.7 Depreciation methods, estimated useful lives and residual value
Depreciation is provided on a Straight Line Method (‘SLM?) over estimated useful life of the fixed assets estimated by the Management. The management believes that the useful lives as given below best represent the period over which management expects to use these assets based on an internal assessment and technical evaluation where necessary. Hence, the useful lives for these assets is different from the useful lives as prescribed under part C of Schedule II of the Companies Act, 2013. Depreciation for assets purchased/sold during the year is proportionately charged. The Company estimated the useful lives for fixed assets as follows:
| Plant & Machinery | 15 Years |
| Office Equipment | 5 Years |
| Vehicles | 8 Years |
| Computer | 3 Years |
The assets residual value and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset?s carrying amount is written down immediately to its recoverable amount if the asset?s carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss within other gains/losses.
Advance paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital advances under other non-current assets and the cost of the assets not put to use before such date are disclosed under ‘Capital work-in-progress?.
1.8 Investment Property
Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes. The Company depreciates investment properties over a period of 60 years on a straight-line basis over its estimated useful life.
1.9 Impairment of intangible assets and property, plant and equipment
Intangible assets and property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs.
If such assets are considered to be impaired, the impairment to be recognised in the statement of profit and loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount.
The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortisation or depreciation) had no impairment loss been recognised for the asset in prior years.
1.10 Leases
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
The Company as a Lessee
The Company assesses whether a contract contains a lease, at inception of a contract. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:
1. The contract involves the use of an identified asset.
2. The Company has substantially all of the economic benefits from use of the asset through the period of the lease; and
3. The Company has the right to direct the use of asset.
As the date of commencement of the lease, the Company recognizes a right-of-use-asset ("ROU") and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.
The of right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payment made prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.
Right-to-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the assets belong.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of changes its assessment if whether it will exercise an extension or a termination option.
The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.
Lease liability and ROU asset have been separately presented in the respective Note and lease payments have been classified as financing cash flows.
The Company as a Lessor
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.
When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.
For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.
1.11 Inventories
Raw Material - Lower of cost or NRV. Cost is determined on weighted average basis. Cost of Raw material comprises of cost of purchase and other cost incurred in bringing the inventory to their present condition and location.
Finished Goods - Lower of cost or NRV. Cost is determined on weighted average basis, includes direct material and labour expenses and appropriate proportion of manufacturing overheads.
Net Realisable value is the estimated selling price in the ordinary course business less estimated cost of completion and estimated cost necessary to make the sale.
1.12 Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above.
1.13 Financial Instruments
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
A. Financial Assets
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
Financial assets are classified, at initial recognition, as financial assets measured at fair value or as financial assets measured at amortised cost.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
1. Financial assets at amortised cost,
2. Financial assets at fair value through other comprehensive income (FVTOCI)
3. Financial assets at fair value through profit or loss (FVTPL)
4. Equity instruments measured at fair value through other comprehensive income (‘FVTOCI?)
Financial asset at amortised cost
A financial asset is measured at the amortised cost if both the following conditions are met:
1. The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
2. Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss. This category generally applies to trade and other receivables.
Financial asset at FVOCI
A financial asset is classified as at the FVTOCI if both of the following criteria are met:
1. The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and
2. The asset?s contractual cash flows represent SPPI
Financial asset at FVTPL
FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.
In addition, a company may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ‘accounting mismatch?). The Company has not designated any debt instrument as at FVTPL. Financial assets included within the FVTPL category are measured at fair value with all changes recognized in the Statement of profit and loss.
Equity investments Other than Investments in subsidiaries, associates and joint ventures
All equity investments in scope of Ind AS 109 are measured at fair value and are classified as FVTPL.
De-recognition
The Company derecognises financial assets when:
1. The rights to receive cash flows from the asset have expired, or
2. The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through? arrangement; and either
3. The Company has transferred substantially all the risks and rewards of the asset, or
4. The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company?s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.
Impairment of Financial Assets
The Company assesses impairment based on expected credit loss (ECL) model to the following:
1. Financial assets measured at amortised cost;
2. Financial assets measured at fair value through other comprehensive income (FVTOCI);
Expected credit losses are measured through a loss allowance at an amount equal to:
1. The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or
2. Full time expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument).
The Company follows ‘simplified approach? for recognition of impairment loss allowance on trade receivables or contract revenue receivables.
The Company follows the simplified approach permitted by Ind AS 109 Financial Instruments- for recognition of impairment loss allowance. The application of simplified approach does not require the Company to track changes in credit risk of trade receivable. The Company calculates the expected credit losses on trade receivables on the basis of its historical credit loss experience. The Company follows ‘simplified approach? for recognition of impairment loss allowance on trade receivables or contract revenue receivables. ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the statement of profit and loss. This amount is reflected under the head ‘other expenses? in the statement of profit and loss. The balance sheet presentation for various financial instruments is described below:
Financial assets measured as at amortised cost, contractual revenue receivables and lease receivables: ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the Company does not reduce impairment allowance from the gross carrying amount.
Loan commitments and financial guarantee contracts: ECL is presented as a provision in the balance sheet, i.e. as a liability.
For assessing increase in credit risk and impairment loss, the Company combines financial instruments on the basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enable significant increases in credit risk to be identified on a timely basis.
The Company does not have any purchased or originated credit-impaired (POCI) financial assets, i.e., financial assets which are credit impaired on purchase/ origination
The Company follows ‘simplified approach? for recognition of impairment loss allowance on trade receivables or contract revenue receivables.
B. Financial liabilities and equity instruments
Classification as debt or equity
Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.
Financial liabilities
Initial recognition and measurement
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
The Company?s financial liabilities include trade and other payables, loans and borrowings including bank overdraft.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
1. Financial liabilities at fair value through profit or loss 2. Loans and borrowings measured on amortised cost basis 3. Financial guarantee contracts Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.
Gains or losses on liabilities held for trading are recognised in the profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to the Statement of profit and loss. However, the company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit and loss. The Company has not designated any financial liability as at FVTPL.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in the Statement of profit and loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the Statement of profit and loss.
Financial guarantee contracts
Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.
C. Off-setting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
1.14 Provisions, Contingent liabilities, Contingent assets and Commitments:
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. Contingent liability is disclosed in the case of:
1. A present obligation arising from the past events, when it is not probable that an outflow of resources will be required to settle the obligation;
2. A present obligation arising from the past events, when no reliable estimate is possible;
3. A possible obligation arising from the past events, unless the probability of outflow of resources is remote.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.
1.15 Taxes
Current Tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on the rates and tax laws enacted or substantively enacted, at the reporting date in the country where the entity operates and generates taxable income. Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Deferred Tax
Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax bases of assets and liabilities and their corresponding carrying amounts for the financial reporting purpose
Deferred tax assets are the amounts of income taxes recoverable in future periods in respect of: 1. deductible temporary differences;
2. the carry forward of unused tax losses; and
3. the carry forward of unused tax credits.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
1.16 Revenue recognition
Revenue Recognition Revenue is recognised upon transfer of control of promised goods or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. a) Sale of goods: Revenue from the sale of products is recognised at the point in time when control is transferred to the customer. Revenue is measured based on the transaction price, which is the consideration, net of customer incentives, discounts, variable considerations, payments made to customers, other similar charges, as specified in the contract with the customer. Additionally, revenue excludes taxes collected from customers, which are subsequently remitted to governmental authorities. b) Interest income: Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset of that asset?s net carrying amount on initial recognition.
Other Income
Other income comprises primarily interest income on deposits, dividend income and gain/(loss) on disposal of financial assets and non-financial assets. Interest income is recognised using the effective interest method. Dividend income is recognised when the right to receive payment is established.
1.17 Embedded derivative
The Group enters into purchase of gold contract, in which the amount payable is not fixed based on gold price on the date of purchase, but instead is affected by changes in gold prices in future. Such transactions are entered into to protect against the risk of gold price movement in the purchased gold. Accordingly, such unfixed payables (gold loan) are considered to have an embedded derivative. The Group designates the gold price risk in such instruments as hedging instruments, with gold inventory considered to be the hedged item. The hedged risk is gold prices movement.
1.18 Government Grants
Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. All the grants related to an expense item are recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed.
1.19 Employee Benefits
A. Short-term employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service. Short-term employee benefits are measured on an undiscounted basis as the related service is provided.
B. Compensated absences
The employees of the Company are not entitled to compensated absences.
C. Defined contribution plan
Under a defined contribution plan, the Company?s only obligation is to pay a fixed amount with no obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits. The Company makes specified monthly contributions towards Employee Provident Fund to Government administered Provident Fund Scheme which is a defined contribution plan. The expenditure for defined contribution plan is recognised as expense during the period when the employee provides service.
D. Defined benefit plan
In accordance with the Payment of Gratuity Act, 1972, the Company provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment with the Company. The present value of gratuity obligation under such defined benefit plan is determined based on actuarial valuations carried out by an external actuary using the Projected Unit Credit Method. The Company recognises the net obligation of a defined benefit plan in its balance sheet as an asset or liability.
The Company recognises the following changes in the net defined benefit obligation as an expense in the statement of profit and loss: - Service costs comprising current service costs, past service costs, gains and losses on curtailments and non-routine settlements; and - Net interest expense or income
Actuarial gains or losses are recognised in other comprehensive income. Further, the statement of profit and loss does not include an expected return on plan assets. Instead, net interest recognised in the statement of profit and loss is calculated by applying the discount rate used to measure the defined benefit obligation to the net defined benefit liability or asset. The actual return on the plan assets above or below the discount rate is recognised as part of remeasurement of net defined liability or asset through other comprehensive income. The Company had not recognised gratuity liability under IGAAP till March 31,2023.
Re-measurement comprising actuarial gains or losses and return on plan assets (excluding amounts included in net interest on the net defined benefit liability) are not reclassified to the statement of profit and loss in subsequent periods.
1.20 Borrowing Cost
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds.
1.21 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
1.22 Segment Reporting
Operating segments are reported in the manner consistent with the internal reporting to the chief operating decision maker (CODM). As per CODM, the Company is reported at an overall level, and hence there are no separate reportable segments as per Ind AS 108.
1.23 Foreign currency transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the respective transactions. Foreign-currency denominated monetary assets and liabilities are translated into the functional currency at exchange rates in effect at the reporting date.
Foreign exchange gains and losses resulting from the settlement of such transactions and such translation of monetary assets and liabilities denominated in foreign currencies are generally recognised in the statement of profit and loss.
Non-monetary assets and liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction. Foreign currency gains and losses are reported on a net basis. This includes changes in the fair value of foreign exchange derivative instruments, which are accounted at fair value through profit or loss.
1.24 Earnings per share
Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Companys earnings per share is the net profit for the period after deducting preference dividends and any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity share.
1.25 New and amended Indian Accounting Standards (Ind AS)
Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. For the six month ended September 30, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
PRINCIPAL COMPONENTS OF STATEMENT OF PROFIT AND LOSS
Set forth below are the principal components of statement of profit and loss from our continuing operations:
Income
Our total income comprises of (i) revenue from operations and (ii) other income.
Revenue from Operations
Revenue from operations comprises of: (i) sale of products; and (ii) Other Operating Income which further includes (i) Labour charges received from job work; (iii) Hallmarking Charges received;
Other Income
Other income includes (i) interest income on bank deposits; (ii) interest received on others;(iii) Exchange Difference; (iv) Reversal of excess provision of ECL; (v) Interest on Security Deposit; (vi) Miscellaneous incomes.
Expenses
Our expenses comprise of: (i) cost of material and store and spare consumed; (ii) purchase of stock-in-trade; (iii) changes in inventories of finished goods, work in progress and stock-in-trade (iv) employee benefits expenses; (v) finance costs; (vi) depreciation and amortization expense; and (vii) other expenses.
Cost of Material Consumed
Cost of Material Consumed denote the sum of opening stock, purchases of raw materials, labour charges less closing stock of raw materials.
Purchase of Stock-in-Trade
Purchase of Stock-in-Trade denote the purchase made during the year i.e. purchase of stock in trade.
Changes in inventories of finished goods, work in progress and stock-in-trade
Changes in inventories of finished goods, work in progress and stock-in-trade denote the difference between opening and closing balance of Finished Goods, work in progress and stock-in-trade.
Employee Benefits Expense
Employee benefits expenses include (i) Salaries and Wages, (ii) Contributions to Provident and Other Funds, (iii) Staff Welfare Expenses, (iv) Gratuity Expense.
Finance Costs
Finance cost includes (i) Interest Expense on Borrowing; (ii) Dividend on Preferential Shares; (iii) Interest on Lease Liabilities; (iii) Interest on car loan; (iv) Interest expense on gold loan and (v) Interest on loan from Director/promoters.
Depreciation and Amortisation expenses
Depreciation and amortisation expenses include (i) depreciation on tangible assets; (ii) depreciation on investment properties; (iii) depreciation of Right-of-use assets.
Other Expenses
Other expenses include:
(i)advertisement and sales promotion;(ii) Audit fees;(iii) Bank charges;(iv) courier and logistic charges;(v) corporate social responsibility;(vi) electricity charges;(vii) factory expenses;(viii) hallmarking charges;(ix) Insurance expenses;(x) labour charges;(xi) legal and professional;(xii) repair and maintenance;(xiii) security charges;(xiv) rates & taxes;(xv) travelling expenses;(xvi) expected credit loss;(xvii) Bad debts written off;(xviii) fixed assets written off;(xix) other expenses;
Our Results of Operations
The following table sets forth selective financial data from our restated statement of profit and loss for the six month ended September 30,2024 and for the Fiscal 2024, Fiscal 2023 and Fiscal 2022, the components of which are also expressed as a percentage of revenue from operations for such periods:
| Particulars | For the six month ended September 30, 2024 | Restated Results for Fiscal 2024 | Restated Results for Fiscal 2023 | Restated Results for Fiscal 2022 | ||||
| Amount | % of revenue From operations | Amount | % of revenue From operations | Amount | % of revenue From operations | Amount | % of revenue From operations | |
| Income | ||||||||
| Revenue from operations | 6,871.35 | 99.99% | 11,015.23 | 99.89% | 9,502.17 | 99.89% | 8,101.87 | 99.92% |
| Other income | 0.96 | 0.01% | 11.85 | 0.11% | 10.77 | 0.11% | 6.11 | 0.08% |
| Total Income | 6,872.31 | 100.00% | 11,027.08 | 100.00% | 9,512.94 | 100.00% | 8,107.98 | 100.00% |
| Expenses | ||||||||
| Cost of material | 4,704.36 | 68.45% | 9,795.36 | 88.83% | 8,721.20 | 91.68% | 7,888.96 | 97.30% |
| Purchases of Stock-In-Trade | 1,469.74 | 21.39% | 933.92 | 8.47% | 262.66 | 2.76% | 236.87 | 2.92% |
| Changes in Inventory of Finished | 97.17 | 1.41% | -383.93 | -3.48% | -17.39 | -0.18% | -466.94 | -5.76% |
| Goods, WIP & Stock -In-Trade | ||||||||
| Employee benefit expense | 60.36 | 0.88% | 92.87 | 0.84% | 75.32 | 0.79% | 44.53 | 0.55% |
| Finance costs | 38.35 | 0.56% | 60.34 | 0.55% | 56.24 | 0.59% | 21.35 | 0.26% |
| Depreciation and amortisation | 12.85 | 0.19% | 25.63 | 0.23% | 18.27 | 0.19% | 6.27 | 0.08% |
| expense | ||||||||
| Other expenses | 43.09 | 0.63% | 81.30 | 0.74% | 82.29 | 0.87% | 103.73 | 1.28% |
| Total Expenses | 6,425.92 | 93.50% | 10,605.49 | 96.18% | 9,198.59 | 96.70% | 7,834.77 | 96.63% |
| Profit before tax | 446.39 | 6.50% | 421.59 | 3.82% | 314.35 | 3.30% | 273.21 | 3.37% |
| Tax expense: | ||||||||
| Current tax | 117.40 | 1.71% | 110.88 | 1.01% | 79.57 | 0.84% | 69.51 | 0.86% |
| Earlier year taxes | - | 0.00% | -0.28 | 0.00% | - | 0.00% | -0.01 | 0.00% |
| Deferred tax | -1.35 | -0.02% | -0.06 | 0.00% | 1.20 | 0.01% | 1.06 | 0.01% |
| Total Tax Expenses | 116.05 | 1.69% | 110.54 | 1.00% | 80.77 | 0.85% | 70.56 | 0.87% |
| Profit for the year/period | 330.34 | 4.81% | 311.05 | 2.82% | 233.58 | 2.46% | 202.65 | 2.50% |
RESULTS OF OPERATIONS INFORMATION FOR FISCAL 2024 COMPARED WITH FISCAL 2023
| Particulars | Fiscal 2024 | Fiscal 2023 | Change in million | Change in % |
| Income | ||||
| Revenue from operations | 11,015.23 | 9,502.17 | 1,513.06 | 15.92% |
| Other income | 11.85 | 10.77 | 1.08 | 10.03% |
| Total Income | 11,027.08 | 9,512.94 | 1,514.14 | 15.92% |
| Expenses | ||||
| Cost of material and store and spare consumed | 9,795.36 | 8,721.20 | 1,074.16 | 12.32% |
| Purchases of Stock-In-Trade | 933.92 | 262.66 | 671.26 | 255.56% |
| Changes in Inventory of Finished Goods, WIP & Stock -In-Trade | (383.93) | (17.39) | (366.54) | 2107.76% |
| Employee benefit expense | 92.87 | 75.32 | 17.55 | 23.30% |
| Finance costs | 60.34 | 56.24 | 4.10 | 7.29% |
| Depreciation and amortization expense | 25.63 | 18.27 | 7.36 | 40.28% |
| Other expenses | 81.30 | 82.29 | (0.99) | (1.20)% |
| Total Expenses | 10,605.49 | 9,198.59 | 1,406.90 | 15.29% |
| Profit before tax | 421.59 | 314.35 | 107.24 | 34.11% |
| Tax expense: | ||||
| Current tax | 110.88 | 79.57 | 31.31 | 39.35% |
| Earlier year taxes | (0.28) | - | (0.28) | (100.00)% |
| Deferred tax | (0.06) | 1.20 | (1.25) | (105.00)% |
| Total Tax Expenses | 110.54 | 80.77 | 29.77 | 36.86% |
| Profit for the period | 311.05 | 233.58 | 77.47 | 33.17% |
Total Income
Our total income has increased by 15.92% to 11,027.08 million in Fiscal 2024 from 9,512.94 million in Fiscal 2023 due to overall increase in revenue from operations.
Revenue from Operations
Our revenue from operations has increased by 15.92% from 9,502.17 million in Fiscal 2023 to 11,015.23 million in Fiscal 2024 majorly due to increase in sale of products.
Revenue from sale of products increased by 15.80% from 9,340.37 million in Fiscal, 2023 to 10,816.37 million in
Fiscal 2024, primarily due to increase in gold prices.
Other Income
Our other income increased by 10.03% from 10.77 million in Fiscal, 2023 to 11.85 million in Fiscal 2024.
Total Expenses
Our total expenses increased by 15.29%, from 9,198.59 million in Fiscal, 2023, to 10,605.49 million in the fiscal, 2024. This rise was primarily driven by an increase in the cost of material and stores and spare consumed by 1,074.16 million, purchases of stock-in-trade by 671.26 million, employee benefit expenses by 17.55 million, finance costs by 4.10 million, and depreciation and amortization expenses by 7.36 million. However, this increase was partially offset by an increase in changes in inventories of finished goods, WIP, and stock-in-trade amounting to 366.54 million and other expenses by 0.99 million.
Cost of Material Consumed
Cost of material consumed increased from 8,721.20 million in Fiscal 2023 to 9,795.36 million in Fiscal 2024, primarily due to higher production requirements due to increase in demand in Fiscal, 2024.
Purchase of Stock-in-Trade
Purchases of Stock-in-Trade increased from 262.66 million in Fiscal 2023, to 933.92 million in the Fiscal 2024, primarily due to higher procurement requirements to support increased sales activity during the year.
Changes in Inventories of Finished Goods, Work in Progress and Stock-in-Trade
The change in inventories of finished goods, work-in-progress, and stock-in-trade decreased from (17.39) million in Fiscal 2023, to (383.93) million in Fiscal 2024. This increase was primarily due to significant accumulation of stock, which result from higher production or strategic retention of inventory at the close of Fiscal 2024.
Employee Benefit Expenses
Employee Benefit Expenses increased by 23.30% from 75.32 million in Fiscal 2023, to 92.87 million in Fiscal, 2024. This increase was primarily attributable to an increase in salaries and wages by 16.85 million.
Finance Cost
The finance cost increased by 7.29%, from 56.24 million in Fiscal 2023 to 60.34 million in Fiscal 2024. The main driver was a rise in interest expenses on borrowings from 27.38 million in Fiscal 2023 to 38.90 million in Fiscal,
2024.
Depreciation and Amortization Expenses
The depreciation and amortization expense increased by 40.28%, from 18.27 million in Fiscal 2023 to 25.63 million in Fiscal 2024. This rise is mainly due to higher depreciation on tangible assets and investment in properties by 2.49 million and 4.88 million respectively.
Other Expenses
Other expenses decreased slightly by 1.20% from 82.29 million in Fiscal 2023 to 81.30 million in Fiscal 2024. The primary contributors to this decrease were reductions in labour charges by 15.45 million and rates and taxes by 7.55 million. However, this was partially offset by an increase in advertising and sales promotion expenses by 7.70 million and repairs and maintenance expenses by 9.38 million.
Profit Before Tax
Due to reasons mentioned above, the profit before tax increased by 34.11%, rising from 314.35 million in Fiscal 2023 to 421.59 million in Fiscal 2024.
Tax Expenses
Total tax expenses increased by 36.86%, from 80.77 million in Fiscal 2023 to 110.54 million in Fiscal 2024. The increase is mainly driven by a rise in current tax, which increased by 39.35%, from 79.57 million in Fiscal 2023 to 110.88 million in Fiscal 2024. Deferred tax decreased from 1.20 million in Fiscal 2023 to (0.06) million in Fiscal
2024.
Profit After Tax
Due to reasons mentioned above, the profit after tax grew by 33.17%, from 233.58 million in Fiscal, 2023 to 311.05 million in Fiscal, 2024.
RESULTS OF OPERATIONS INFORMATION FOR THE FISCAL 2023 COMPARED WITH FISCAL 2022
| Particulars | Fiscal 2023 | Fiscal 2022 | Change in million | Change in % |
| Income | ||||
| Revenue from operations | 9,502.17 | 8,101.87 | 1,400.30 | 17.28% |
| Other income | 10.77 | 6.11 | 4.66 | 76.27% |
| Total Income | 9,512.94 | 8,107.98 | 1,404.96 | 17.33% |
| Expenses | ||||
| Cost of material | 8,721.20 | 7,888.96 | 832.24 | 10.55% |
| Purchases of Stock-In-Trade | 262.66 | 236.87 | 25.79 | 10.89% |
| Changes in Inventory of Finished Goods, WIP & Stock -In-Trade | (17.39) | (466.94) | 449.55 | (96.28%) |
| Employee benefit expense | 75.32 | 44.53 | 30.79 | 69.14% |
| Finance costs | 56.24 | 21.35 | 34.89 | 163.42% |
| Depreciation and amortization expense | 18.27 | 6.27 | 12.00 | 191.39% |
| Other expenses | 82.29 | 103.73 | (21.44) | (20.67)% |
| Total Expenses | 9,198.59 | 7,834.77 | 1,363.82 | 17.41% |
| Profit before tax | 314.35 | 273.21 | 41.14 | 15.06% |
| Tax expense: | ||||
| Current tax | 79.57 | 69.51 | 10.06 | 14.47% |
| Earlier year taxes | - | (0.01) | 0.01 | (100.00)% |
| Deferred tax | 1.20 | 1.06 | 0.14 | 13.21% |
| Total Tax Expenses | 80.77 | 70.56 | 10.21 | 14.47% |
| Profit for the year/period | 233.58 | 202.65 | 30.93 | 15.26% |
Total Income
Our total income has increased by 17.28% to 9,512.94 million in Fiscal, 2023, from 8,107.98 million in Fiscal
2022. This increase was primarily driven by a rise in revenue from operations.
Revenue from Operations
Our revenue from operations has increased by 17.28% to 9,502.17 million in Fiscal, 2023 from 8,101.87 million in
Fiscal, 2022 majorly due to increase in sale of Products.
Revenue from sale of product is increased by 16.73% from 8,001.57 million in the Fiscal 2022 to 9,340.37 million in the Fiscal 2023, primarily due to (i) increase in sale of our gold jewellery and (ii) due to increase in gold prices in Fiscal 2023;
Revenue from the Job work done for the other jewellers is increased by 56.50% from 99.98 million in the Fiscal 2022 to 156.47 million in the Fiscal 2023, due to increase in the quantity of the gold processed for the manufacturing of the mangalsutra on the gold received by the other Jewellers.
Other operating income
Our other operating income i.e. Hallmark charges received from the Customer is increased by the 1570.70% from the
0.32 million in the Fiscal 2022 to 5.33 million in the Fiscal 2023.
Other Income
Other Income increased by 76.27%, from 6.11 million in Fiscal, 2022, to 10.77 million in Fiscal, 2023. This rise was mainly driven by an increase in interest income on others, which grew significantly by 2.28 million, and exchange difference, which increased by 1.21 million. Additionally, a reversal of excess provision of ECL amounting to 1.88 million contributed to the overall growth. Interest on security deposits also added 0.29 million to other income during the year. However, miscellaneous income declined by 1.07 million, offsetting a portion of the increase.
Total Expenses
Our total expenses increased by 17.41%, from 7,834.77 million in Fiscal, 2022, to 9,198.59 million in Fiscal, 2023. This rise was primarily driven by an increase in the cost of material and stores consumed by 832.24 million, purchases of stock-in-trade by 25.79 million, employee benefit expenses by 30.79 million, finance costs by 34.89 million, depreciation and amortization expenses by 12.00 million and changes in inventories of finished goods, WIP, and stock-in-trade amounting to 449.55 million. However, this was partially offset by a reduction in other expenses by 21.44 million.
Cost of Material Consumed
Cost of material consumed increased by 10.55% from 7,888.96 million in Financial Year ended March 31, 2022 to 8,721.20 million in Financial Year ended March 31, 2023, primarily due to higher production requirements due to increase in demand in Financial Year ended March 31, 2023.
Purchase of Stock-in-Trade
Purchases of Stock-in-Trade increased by 10.89% from 236.87 million in Fiscal, 2022, to 262.66 million in Fiscal,
2023, primarily due to higher procurement requirements to support increased sales activity during the year.
Changes in Inventories of Finished Goods, Work in Progress and Stock-In-Trade
The change in inventories of finished goods, work-in-progress, and stock-in-trade decreased by 96.28% from
(466.94) million in Fiscal, 2022, to (17.39) million in Fiscal, 2023.
Employee Benefit Expenses
Employee Benefit Expenses increased significantly by 69.14%, from 44.53 million in Fiscal, 2022, to 75.32 million in Fiscal, 2023. This increase was primarily attributable to a rise in salaries and wages by 30.04 million, as well as an increase in gratuity expenses by 0.79 million. Contributions to provident and other funds and staff welfare expenses remained relatively stable.
Finance Cost
The finance cost surged by 163.42%, from 21.35 million in Fiscal, 2022, to 56.24 million in Fiscal, 2023. This sharp rise was driven by an increase in interest expenses on borrowings, which grew from 15.91 million to 27.38 million, and the introduction of dividends on preferential shares amounting to 7.71 million. Interest expenses on gold loans increased significantly by 5.06 million, while interest on loans from directors/promoters also saw a substantial rise of 6.78 million.
Depreciation and Amortization Expenses
Depreciation and amortization expenses increased sharply by 191.39%, from 6.27 million in Fiscal, 2022, to 18.27 million in Fiscal, 2023. This increase was primarily due to a significant rise in depreciation of right-of-use assets, which grew from 0.02 million to 12.28 million. Depreciation on tangible assets decreased slightly by 0.70 million, while depreciation on investment properties accounted for 0.44 million in Fiscal, 2023.
Other Expenses
Other expenses decreased by 20.67%, from 103.73 million in Fiscal, 2022, to 82.29 million in Fiscal, 2023. The primary contributors to this decrease were reductions in labor charges by 16.25 million, repairs and maintenance expenses by 16.87 million and other miscellaneous expenses by 2.80 million. Additionally, reductions were observed in bank charges by 0.67 million, legal and professional fees by 0.36 million. However, this decrease was partially offset by increases in hallmarking charges by 3.04 million, corporate social responsibility expenses by 2.48 million, rates and taxes by 6.75 million, electricity charges by 1.84 million, factory expenses by 1.95 million, security charges by 1.43 million, and courier and logistics charges by 0.27 million. These changes collectively resulted in the overall reduction in total other expenses for the year.
Profit Before Tax
The profit before tax increased by 15.06%, rising from 273.21 million in Fiscal 2022 to 314.35 million in Fiscal
2023, reflecting a strong growth in earnings.
Tax Expenses
Total tax expenses increased by 14.47%, from 70.56 million in Fiscal 2022 to 80.77 million in Fiscal 2023. The increase is mainly driven by a rise in current tax, which increased by 14.47%, from 69.51 million in Fiscal 2022 to 79.57 million in Fiscal 2023. Deferred tax increased by 13.21% from 1.06 million in Fiscal 2022 to 1.20 million in Fiscal 2023.
Profit After Tax
Profit after tax grew by 15.26%, from 202.65 million in Fiscal 2022 to 233.58 million in Fiscal 2023, reflecting the strong performance in PBT, partially offset by higher taxes.
Cash Flow
The table below summaries our cash flows from our Restated Financial Information for the six month ended September 30, 2024 and the fiscal 2024, 2023 and 2022:
| Particulars | For the six month ended | Fiscal | ||
| September 30, 2024 | 2024 | 2023 | 2022 | |
| Net cash flow generated from/ (utilized in) operating activities (A) | (201.88) | (152.60) | 129.54 | (295.29) |
| Net cash flow generated from/ (utilized in) investing activities (B) | (15.39) | (5.48) | (27.72) | (364.60) |
| Net cash flow generated from/ (utilized in) financing activities (C) | 246.09 | 120.81 | (90.82) | 688.27 |
| Net (decrease)/ increase in cash & cash equivalents (A+B+C) | 28.82 | (37.27) | 11.00 | 28.38 |
| Cash and cash equivalents at the beginning of the year | 20.92 | 58.20 | 47.20 | 18.82 |
| Cash and cash equivalents at the end of the year | 49.74 | 20.92 | 58.20 | 47.20 |
Cash flow from Operating Activities
For the Six Month Ended September 30, 2024
Net cash utilized in operating activities for the Six month ended September 30, 2024 was 201.88 million. While our profit before tax for the six month ended September 30, 2024 was 446.39 million, our operating profit before working capital changes and other adjustments was 497.96 million. This was primarily due to adjustments for finance cost of 37.04 million, depreciation and amortisation expenses of 12.85 million, allowance for expected credit loss 2.06 million. This was offset by interest income of 0.38 million. Changes in working capital for the six month ended September 30, 2024 primarily consisted of increase in inventories of 435.19 million, increase in trade receivables, loans, other financial assets and other assets of 635.87 million, increase in financial and other assets of 11.25 million and decrease in trade payable, other financial liabilities, other liabilities and provisions of 447.14 million. Our income taxes paid was 64.67 million for the six month ended September 30, 2024.
For the Fiscal 2024
Net cash utilized in operating activities for the Fiscal 2024 was 152.60 million. While our profit before tax for the Fiscal, 2024 was 421.59 million, our operating profit before working capital changes and other adjustments was 502.72 million. This was primarily due to adjustments for finance cost of 57.09 million, depreciation and amortisation expenses of 25.63 million, balance written off 1.70 million. This was offset by interest income of 0.94 million and allowance for expected credit loss 2.35 million. Changes in working capital for the Fiscal, 2024 primarily consisted of increase in inventories of 400.67 million, increase in trade receivables, loans, other financial assets and other assets of 145.46 million and decrease in financial and other assets of 2.29 million, decrease in trade payable, other financial liabilities, other liabilities and provisions of 48.67 million. Our income taxes paid was 160.15 million for the Fiscal, 2024.
For the Fiscal 2023
Net cash generated from operating activities for the Fiscal, 2023 was 129.54 million. While our profit before tax for the Fiscal, 2023 was 314.35 million, our operating profit before working capital changes and other adjustments was 380.25 million. This was primarily due to adjustments for finance cost of 52.26 million, depreciation and amortisation expenses of 18.27 million. This was offset by interest income of 2.75 million and allowance for expected credit loss 1.88 million. Changes in working capital for Fiscal, 2023 primarily consisted of increase in trade receivables, loans, other financial assets and other assets of 212.43 million, increase in trade payable, other financial liabilities, other liabilities and provisions of 35.48 million and decrease in inventories of 71.53 million, decrease in financial and other assets of 5.52 million. Our income taxes paid was 79.85 million for the Fiscal, 2023.
For the Fiscal 2022
Net cash utilized in operating activities for the Fiscal, 2022 was 295.29 million. While our profit before tax for the Fiscal, 2022 was 273.21 million, our operating profit before working capital changes and other adjustments was 302.08 million. This was primarily due to adjustments for finance cost of 21.24 million, depreciation and amortisation expenses of 6.27 million, allowance for expected credit loss 1.77 million. This was offset by interest income of 0.41 million. Changes in working capital for the Fiscal, 2024 primarily consisted of increase in inventories of 491.10 million, increase in trade receivables, loans, other financial assets and other assets of 15.70 million, increase in financial and other assets of 18.34 million and increase in trade payable, other financial liabilities, other liabilities and provisions of 37.06 million. Our income taxes paid was 35.18 million for the Fiscal, 2022.
Cash flow from Investing Activities
For the Six Month September 30, 2024
Net cash flow utilized in investing activities was 15.39 million for the Six Month ended September 30, 2024. This reflected the capital expenditure made towards addition in property, plant & equipment and investment property for
15.77 million. These payments were partially offset by proceeds from interest received 0.38 million.
For the Fiscal 2024
Net cash flow utilized in investing activities was 5.48 million for the Fiscal, 2024. This reflected the capital expenditure made towards addition in property, plant & equipment and investment property for 6.42 million. These payments were partially offset by proceeds from interest received 0.94 million.
For the Fiscal 2023
Net cash flow utilized in investing activities was 27.72 million for the Fiscal, 2023. This reflected the capital expenditure made towards addition in property, plant & equipment and investment property for 30.47 million. These payments were partially offset by proceeds from interest received 2.75 million.
For the Fiscal 2022
Net cash flow utilized in investing activities was 364.60 million for the Fiscal, 2022. This reflected the capital expenditure made towards addition in property, plant & equipment and investment property for 365.01 million. These payments were partially offset by proceeds from interest received 0.41 million.
Cash flow from Financing Activities
For the Six Month ended September 30, 2024
Net cash flow generated from financing activities was 246.09 million for the six month ended September 30, 2024 consisting of repayment of long term borrowings of 15.16 million, interest paid of 37.04 million and proceeds from short term borrowings of 298.29 million.
For the Fiscal 2024
Net cash flow generated from financing activities was 120.81 million for the Fiscal, 2024 consisting of repayment of long term borrowings of 30.57 million, interest paid of 57.09 million, redemption of preference shares of 85.72 million, and proceeds from long term borrowing of 1.70 million and from short term borrowings of 292.49 million.
For the Fiscal 2023
Net cash flow utilized in financing activities was 90.82 million for the Fiscal, 2023 consisting of repayment of long term borrowings of 166.20 million, interest paid of 52.26 million and proceeds from short term borrowings of 127.64 million.
For the Fiscal 2022
Net cash flow generated from financing activities was 688.27 million for the Fiscal, 2022 consisting of interest paid of 21.24 million and proceeds from long term borrowings of 326.22 million, short term borrowings of 292.09 million and from issue of equity shares 91.20 million.
Financial Indebtedness
As of September 30, 2024, we had total borrowings (consisting of long term borrowings and short term borrowings) of 1,352.92 million of which 71.29 million was long term borrowings (including current maturities) and 1,281.63 million was short term borrowings. For further information on our agreements governing our outstanding indebtedness, see "Financial Indebtedness" on page 275.
Contingent Liabilities and Commitments
There are no contingent liabilities and commitments as on September 30, 2024 as per Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets, derived from the Restated Financial Information.
It is not practical for our Company to estimate the timings of cash outflow, if any in respect of above pending resolutions of the respective proceedings.
Related Party Transactions
We enter into various transactions with related parties. For further information, see "Restated Financial Information
Note 32- Related Party Transactions" on page 255.
Quantitative and Qualitative Disclosure about Market Risks
Market risk
Market risk is the risk that changes in market prices such as foreign exchange rates and interest rates will affect the
Company?s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily related to foreign exchange rate risk and interest rate risk. Thus, our exposure to market risk is a function of revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs.
Foreign Currency Risk
The Company is exposed to currency risk on account of its borrowings, Trade payable, other payables and receivables in foreign currency. The functional currency of the Company is Indian Rupee. The Company uses forward exchange contracts to hedge its currency risk, most with a maturity of less than one year from the reporting date.
Interest Rate Risk
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing finacial instruments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing financial instruments will fluctuate because of fluctuations in the interest rates.
Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Companys receivables from customers. The Company has very limited history of customer default, and considers the credit quality of trade receivables that are not past due or impaired to be good. The credit risk for cash and cash equivalents, bank deposits, loans and financial instruments is considered negligible. The carrying amount of following financial assets represents the maximum credit exposure.
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 Company?s 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 Company?s reputation. The Company uses product-based costing to cost its products and services, which assists it in monitoring cash flow requirements and optimizing its cash return on investments. The Company monitors the level of expected cash inflows on trade and other receivables together with expected cash outflows on trade and other payables.
Off-Balance Sheet Items
We do not have any other off-balance sheet arrangements, derivative instruments or other relationships with any entity that have been established for the purposes of facilitating off-balance sheet arrangements.
Effect of Inflation
We are affected by inflation as it has an impact on the material cost, wages, etc. in line with changing inflation rates; we rework our margins so as to absorb the inflationary impact.
Reservations, Qualifications and Adverse Remarks
There have been no reservations, qualifications, matters of emphasis or adverse remarks in the Restated Financial Information of our Company for the six months ended September 30, 2024 and for the financial years ended March 31, 2024, March 31, 2023 and March 31, 2022 and the examination report thereon. In addition, our Statutory Auditors are required to comment upon the matters included in the Companies (Auditors
Report) Order, 2020/ Companies (Auditors Report) Order, 2016 (together, the "CARO Report") issued by the Central
Government of India under Section 143(11) of the Companies Act, 2013 on the audited financial statements as at and for Fiscal 2024. Our Statutory Auditor have, for Fiscals 2024, included remarks in connection with the CARO Report on the audited financial statements of our Company as at and for Fiscals 2024.
For Fiscal 2024
CARO Clause (ii)(b)- Quarterly Statement filed with bank
The Company has been sanctioned working capital limits in excess of Rs. 5 crores, in aggregate, during the year, from bank on the basis of security of current assets. The quarterly returns and statements comprising stock and creditors statements, book debt statement filed by the Company with such banks are having following difference with the unaudited books of accounts, of the respective quarters.
Refer Note (1) below
| Amount Rs. In million | ||||||
| Names of Bank | Quarter End | Particulars | Disclosed as per Statement |
As per Books of Accounts |
Difference |
Remarks |
| Q-4 31st March 2024 | Inventory | 1514.85 |
1,438.25 |
76.59 |
||
| Kotak Mahindra Bank Limited | Trade Payable | 223.54 |
314.48 |
90.94 |
Different basis is used for valuation of Inventory, Trade | |
| Trade Receivable | 616.75 |
604.69 |
12.06 |
Payable/Receivable are based on Unaudited Books of Accounts, net of advance. | ||
| Inventory | 1,108.27 |
1,107.75 |
0.52 |
Different basis is used for valuation of Inventory, Trade Payable/Receivable are based on Unaudited | ||
| Kotak Mahindra Bank Limited | Q-3 31st December 2024 | Trade Payable | 259.24 |
237.69 |
21.56 |
|
| Trade Receivable | 397.5 |
349.74 |
47.76 |
Books of Accounts, net of advance. | ||
| Inventory | 1,532.97 |
1,524.22 |
8.76 |
Different basis is used for valuation of Inventory, Trade Payable/Receivable are based on Unaudited | ||
| Kotak Mahindra Bank Limited | Q-2 30th September 2024 | Trade Payable | 243.57 |
245.29 |
-1.72 |
|
| Trade Receivable | 519.07 |
434.39 |
84.67 |
Books of Accounts, net of advance. | ||
| Inventory | 1,673.88 |
1,643.32 |
30.56 |
Different basis is used for valuation of Inventory, Trade Payable/Receivable are based on Unaudited | ||
| Kotak Mahindra Bank Limited | Q-1 30th June 2024 | Trade Payable | 218.38 |
226.92 |
-8.54 |
|
| Trade Receivable | 353.4 |
243.86 |
109.55 |
Books of Accounts, net of advance. | ||
Material Frauds
There are no material frauds, as reported by our statutory auditor, committed against our Company, in the last three Financial Years.
Unusual or Infrequent Events or Transactions
As on date, there have been no unusual or infrequent events or transactions including unusual trends on account of business activity, unusual items of income, change of accounting policies and discretionary reduction of expenses.
Significant Economic Changes that materially affected or are likely to affect income from continuing operations;
To the best of our managements knowledge, apart from the factors discussed under the section titled "Significant Factors Affecting Our Financial Condition and Results of Operations," there are no other major economic changes that have materially impacted or are likely to impact income from continuing operations.
Known trends or uncertainties that have had or are expected to have a Material Adverse Impact on Sales, Revenue or Income from Continuing Operations;
Other than as described in the section titled "Risk Factors" on page 31 and in this chapter, to our knowledge there are no known trends or uncertainties that are expected to have a material adverse impact on revenues or income of our Company from continuing operations.
Future changes in relationship between costs and revenues, in case of events such as future increase in labour or material costs or prices that will cause a material change are known;
Other than as described in chapter titled "Risk Factors" on page 31 and in this section, to our knowledge there are no known factors that might affect the future relationship between cost and revenue.
Extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or services or increased sales prices;
Our business has been impacted by the trends outlined above and is expected to remain influenced by these trends and the uncertainties detailed in the "Risk Factors" section on page 31. The changes in revenue over the past three
Fiscals are discussed in the sections "Results of Operations: Fiscal 2024 vs. Fiscal 2023" and "Results of Operations: Fiscal 2023 vs. Fiscal 2022" mentioned earlier.
NEW PRODUCTS OR BUSINESS SEGMENTS
Other than as described in "Our Business" on page 161, there are no new products or business segments in which we operate.
Seasonality of Business
Our business is subject to seasonal variations given festive and other occasions falling in different months and quarters of the Fiscal. For risks associated with the seasonality of our business, see "Risk Factor- 11 . Our income and sales are subject to seasonal fluctuations and lower income in a peak season may have a disproportionate effect on our results of operations" on page 40.
Significant Dependence on a Single or Few Customers
The percentage of revenue from operations derived from our top customers is given below:
| S r. N Particulars | Six month period ended September 30 2024 | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 | ||||
| o. | Revenue | % | Revenue | % | Revenue | % | Revenue | % |
| 1 Top 1 | 1,063.53 | 15.48 | 1,418.29 | 12.88 | 1,452.25 | 15.28 | 1,437.39 | 17.74 |
| 2 Top 5 | 2,156.01 | 31.38 | 3,388.86 | 30.77 | 3,053.26 | 32.13 | 2,558.95 | 31.58 |
| 3 Top 10 | 2,760.76 | 40.18 | 4,338.82 | 39.39 | 3,766.67 | 39.64 | 3,098.41 | 38.24 |
Competitive Conditions
We expect competition in our industry from existing and potential competitors to intensify. For further details on competitive conditions that we face across our various business segments, please see "Our Business", "Industry Overview" and "Risk Factors" on pages 161, 123 and 31.
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2025, IIFL Capital Services Ltd. All Rights Reserved
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016, BSE Enlistment Number (RA): 5016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.