SMR Jewels Ltd Management Discussions

MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF

OPERATIONS

You should read the following discussion of our financial condition and results of operations together with our Restated Financial Information included in the Draft Red Herring Prospectus. You should also read the section entitled "Risk Factors" beginning on page 37, which discusses several factors, risks and contingencies that could affect our financial condition and results of operations. The following discussion relates to our Company and is based on our restated financial information, which have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI Regulations. Portions of the following discussion are also based on internally prepared statistical information and on other sources. Our financial year ends on March 31 of each year. Accordingly, all references to a particular financial year (Financial Year or FY) relate to the twelve-month period ended March 31 of that year. References to the period ended June 30, 2025 pertain to the three-month stub period only.

The financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the examination report issued of our statutory auditor dated August 20, 2025 which is included in this Draft Red Herring Prospectus under the section titled "Restated Financial Information" beginning on page 230 of this Draft Red Herring Prospectus.

BUSINESS OVERVIEW

Our Company was originally incorporated as a private limited Company under the name of "SMR Jewels Private Limited" on October 26, 2018 under the provisions of the Companies Act, 2013 with the Registrar of Companies, Central Registration Centre bearing registration number as U74999GJ2018PTC104946. Subsequently, pursuant to Special Resolution passed by the Shareholders at the Extra Ordinary General Meeting, held on September 14, 2024, our Company was converted into a Public Limited Company and consequently the name of our Company was changed from "SMR Jewels Private Limited" to "SMR Jewels Limited" vide a fresh certificate of incorporation consequent upon conversion from private company to public company dated October 11, 2024 issued by the Registrar of Companies, Central Registration Centre bearing CIN U74999GJ2018PLC104946.

We specialize in Designer Heritage Jewellery that blends Indias cultural traditions with modern aesthetics. Our collections include theme-based designs inspired by mythology and spirituality, nature-inspired motifs, and traditional forms such as Jadtar, Meenakari, Polki, and Bridal Jewellery, along with Daily Wear designs.

All jewellery is designed in-house and crafted by skilled artisans, ensuring originality, authenticity, and certified quality. We also provide customisation and heirloom recreation , preserving heritage while adding modern styling.

Through our integrated model of in-house design, artisan collaboration, and structured distribution, we deliver heritage-rooted, nature-inspired, and trend-conscious jewellery that combines craftsmanship, purity, and timeless storytelling.

Manufacturing & Quality

Our manufacturing process is built on design originality and rigorous quality control:

1. Design & Conceptualization Inspired by mythology, culture, and nature.

2. CAD Modelling Translating creative ideas into precise 3D digital models.

3. Material Sourcing Ethical procurement of gold, gemstones, pearls, and allied inputs.

4. Dual-Phase Outsourcing Base structure development followed by artisanal detailing.

5. Finalization & Finishing Hand-polishing, stone setting, and design refinement.

6. Quality Control Inspection of purity, durability, and design accuracy with hallmark certification.

7. Packaging & Distribution Secure, premium packaging with barcode-enabled traceability.

Outsourced Manufacturing Operations

Our manufacturing is carried out through skilled Karigars engaged as job workers, who possess expertise in artistic craftsmanship for carving and processing both plain and studded gold jewellery across various regions. By outsourcing specific tasks to these artisans, we are able to leverage specialized skills, traditional techniques, and resources that may not be available in-house. This approach not only enhances efficiency but also provides flexibility in production. We have a dedicated in-house Design Team, managed by our promoters, which conceptualizes, prepares, and finalizes jewellery designs. Once the designs are approved, they are shared with Karigars for execution. The manufacturing process often involves multiple stages, where one Karigar completes the initial level of work and the partially finished product is passed on to another for subsequent processing. After these stages, the product undergoes final finishing and quality refinement at our in-house facility, ensuring that each piece meets our standards of craftsmanship and design excellence

Diversified Jewellery Collection

Our product profile includes traditional, contemporary and many combinations of designs across jewellery lines, usages and price points. Our gold jewellery inventory in all states where we are present reflects regional customer preference and designs. Our focus on design and innovation, our ability to recognize consumer preferences and market trends, the intricacy of our designs and the quality of our products are our key strengths. We provide a wide variety of jewellery items, focusing on designing, manufacturing, and selling high-quality pieces such as necklaces, rings, earrings, bangles, bracelets, pendants Etc. Our aim is to create exquisite jewellery suitable for bridal, occasional and festivalware at a very competitive price. Our wholesale customer base includes respected corporate clients, national, regional, and local family Jewellers across India.

Commitment to Quality and Customer Satisfaction

We are committed to excellence and continuously strive to improve our operations, focusing on quality control, inventory management, and business development. Our company exclusively deals in jewellery certified by the Bureau of Indian Standards (BIS) Hallmark, a widely recognized mark of purity that encourages additional confidence in consumers regarding the purity of our gold jewellery. To ensure the highest level of customer satisfaction, we prioritize jewellery designs based on customer preferences. As a customer-centric company, our primary goal is to achieve utmost client satisfaction by providing top-quality products. We constantly strive to offer our customers unique designs with the desired finish and quality. We understand that earning and maintaining the trust of our customers is crucial to our success. Therefore, we adhere strictly to the hallmarking process for our gold jewellery and conduct regular quality checks to validate the golds quality.

For further details, kindly refer to chapter titled "Business Overview" beginning on page no. 153 of this Draft Red Herring Prospectus.

KEY PERFORMANCE INDICATORS OF OUR COMPANY

		For The Period / Year Ended On
Particulars	June 30, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Financial KPIS
Revenue from Operations (Rs. in Lakhs)	10,003.42	26,325.18	12,452.30	6,752.78
Total Income (Rs. in Lakhs)	10,003.42	26,325.18	12,452.30	6,753.01
EBITDA (1) (Rs. in Lakhs)	624.33	1,516.61	614.48	195.84
EBITDA margin (%) (2)	6.25%	5.76%	4.93%	2.90%
PAT (Rs. in Lakhs)	448.46	1041.47	384.51	90.94
PAT margin (%)	4.48%	3.96 %	3.09 %	1.35 %
Net Debt (3) (Rs. in Lakhs)	632.21	(173.72)	748.92	572.78
Total Equity (Net Worth) (Rs. in Lakhs)	2,861.39	2,413.79	488.16	103.64
Capital Employed * (Rs. in Lakhs)	3,583.44	3,153.55	1,025.54	554.07
ROE (%) (4)	16.97%	71.76%	129.95%	156.32%
ROCE (%) (5)	17.38%	47.92%	59.51%	34.91%
EPS (Basis & Diluted) (6)	3.05	7.11	2.62	0.62
Operational KPIs
Number of New Products/Designed Launched	250	500	500	500
or introduced
Number of Total Customers	105	229	400	156
Number of Total Suppliers	34	96	79	41
Number of Exhibitions participated	1	5	5	5
Average per customer order size (in Lakhs)	95.27	114.95	31.13	43.28
Customers (% Contribution to Sales)
Top 1 Customer Concentration (in %)	23.59%	26.39%	19.99%	11.46%
Top 3 Customer Concentration (in %)	46.32%	38.73%	39.91%	32.87%
Top 5 Customer Concentration (in %)	64.69%	48.36%	48.95%	42.44%
Top 10 Customer Concentration (in %)	83.48%	62.43%	61.34%	51.89%
Bifurcation Of Revenue in Operations
Goods Traded	100.18	2,661.72	4,263.80	1,020.09
% of Total Revenue in Operations	1.00%	10.11%	34.26%	15.11%
Goods Manufactured	9,896.35	23,662.97	8,183.18	5,731.19
% of Total Revenue in Operations	99.00%	89.89%	65.74%	84.89%
For the period ended June 30, 2025	figures are not annualized.

1) Revenue from Operations means the Revenue from Operations as appearing in the Restated Financial Information.

2) Total Income represents Revenue from Operations along with other operating income, if any.

3) EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) is calculated as Profit before Tax, Finance Costs, and Depreciation & Amortization, adjusted for Other Income.

4) EBITDA Margin (%) is calculated as EBITDA divided by Revenue from Operations.

5) Profit After Tax (PAT) refers to net profit attributable to shareholders after deduction of tax expenses, as disclosed in the Restated Financial Information.

6) PAT Margin (%) is calculated as Profit After Tax divided by Revenue from Operations.

7) Net Debt is defined as the sum of total borrowings (long-term and short-term) less cash and cash equivalents.

8) Net Worth represents the aggregate of paid-up equity share capital and reserves & surplus, as per the Restated Financial Information.

9) Capital Employed is defined as Net Worth plus Long Term Debt.

10) Return on Equity (RoE) (%) is calculated as Profit After Tax divided by Net Worth end of that period.

11) Return on Capital Employed (RoCE) (%) is calculated as Earnings Before Interest and Tax (EBIT) divided by Capital Employed end of the period.

12) Earnings per Share (EPS) is calculated in accordance with AS 20 (Earnings Per Share) as Profit After Tax divided by the weighted average number of equity shares outstanding during the respective period.

13) Number of Total Customers represents the count of unique customers who have purchased from the Company during the period. 14) Number of Total Suppliers represents the unique vendors from whom the Company has procured raw materials, goods, or services during the period.

15) Number of Karigars refers to the total artisans or craftsmen engaged with the Company during the period either on payroll or on contractual basis.

16) Average per Customer Order Size is calculated as Revenue from Operations divided by the Number of Customers served during the period.

17) Customer Concentration is calculated based on contribution of revenue by top 1, 3, 5, and 10 customers to the total Revenue from Operations of the Company during the respective period.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO LAST AUDITED BALANCE SHEET

After the date of last audited financial statements i.e. For the period ended June 30, 2025, the Board of Directors of our Company confirm that, there have not been any significant material developments.

FACTORS AFFECTING OUR RESULT OF OPERATIONS

The results of operations of the Company are primarily driven by trends in gold prices, demand for jewellery, and our ability to efficiently manage procurement and inventory. Revenue from operations has grown consistently, increasing from 6,752.78 lakhs in FY 2023 to 12,452.30 lakhs in FY 2024, and further to 26,325.18 lakhs in FY 2025. For Q1 FY 2026, revenue stood at 10,003.42 lakhs, reflecting strong momentum in sales.

The cost of materials consumed continues to be the largest component of expenses, rising in line with business growth from 6,102.59 lakhs in FY 2023 to 6,885.37 lakhs in FY 2024, and further to 23,296.74 lakhs in FY 2025, with 10,056.00 lakhs recorded for Q1 FY 2026. These amounts include both purchases and incidental expenses.

Our revenue mix highlights a deliberate transition from trading to manufacturing-led operations. Manufacturing revenues rose sharply to 23,662.97 lakhs in FY 2025, accounting for 89.89% of total revenue, compared to 8,183.18 lakhs in FY 2024 (65.74%) and 5,731.19 lakhs in FY 2023 (84.89%). Conversely, trading revenues declined to 2,661.72 lakhs in FY 2025 from 4,263.80 lakhs in FY 2024. This shift is even more pronounced in Q1 FY 2026, where manufacturing contributed 9,896.35 lakhs (98.99%) while trading was limited to 100.18 lakhs (1.01%).

The increasing share of manufacturing reflects our focus on in-house design, outsourcing-driven production, and artisanal collaborations. This model not only supports higher margins but also reinforces our brand identity. We believe this strategic shift positions the Company for sustainable growth by reducing reliance on trading, enhancing value addition, and strengthening our ability to meet evolving customer preferences.

From the Companys perspective, profitability is directly impacted by fluctuations in international bullion prices, as even small changes in procurement costs substantially influence margins given the high value of gold. Seasonal demand, particularly during festivals and the wedding season, also drives quarter-on-quarter variations. Inventory valuation between procurement and sale periods exposes the business to price volatility, which can lead to gains or losses depending on market conditions. Additionally, working capital borrowings expose the Company to finance costs, which may rise with increased scale or changes in interest rates. Going forward, efficient inventory management, hedging strategies against gold price fluctuations, cost optimization, and demand-driven sales expansion will remain critical factors influencing the Companys results of operations.

CHANGES IN LAWS AND REGULATIONS RELATING TO THE INDUSTRY IN WHICH WE OPERATE

Our operations are subject to various laws, rules, and regulations applicable to the jewellery industry and B2B trade in India. Any changes, amendments, or introduction of new regulations may significantly affect our business, financial condition, and results of operations.

The jewellery industry is closely regulated with respect to taxation, hallmarking standards, import/export policies on gold and precious stones, foreign trade regulations, Goods and Services Tax (GST) compliance, and labour laws applicable to artisans and job workers. Modifications in these laws or the manner of their enforcement can impact our cost structure, pricing, and overall profitability. For instance:

Taxation and Duties: Any increase in customs duties on import of gold, changes in GST rates, or introduction of new cess/levies may directly affect raw material costs and, in turn, margins.

Hallmarking and Quality Standards: The implementation of mandatory hallmarking, new certification norms, or stricter compliance requirements may increase compliance costs and affect the pace of business transactions in the B2B segment.

Foreign Trade and Exchange Regulations: Restrictions on gold imports, changes in RBI/FEMA guidelines, or fluctuations in foreign trade policy could impact the availability and pricing of raw materials.

Labour and Employment Laws: Regulatory changes related to wages, working conditions, or social security obligations for karigars and job workers may result in additional compliance and cost burdens.

As we operate primarily in the B2B jewellery industry, which is sensitive to such regulatory changes, any adverse amendments in applicable laws may materially impact our operational efficiency, profitability, and competitive positioning. Conversely, policy reforms that encourage ease of doing business, reduce duties, or promote exports could have a positive effect on our performance.

OUR SIGNIFICANT ACCOUNTING POLICIES

For Significant accounting policies refer "Restated Significant Accounting Policies and Notes to Restated Financial Information" under Section titled "Restated Financial Information " beginning on page 230 of this Draft Red Herring Prospectus.

OUR ASSETS & LIABILITES

(Amount in Lakhs)

		For The Period / Year Ended On
Particulars	June 30, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Liabilities
Long-term Borrowings	722.06	739.77	537.38	450.43
Short-term Borrowings	151.54	116.78	227.33	182.29
Trade Payables	563.73	125.21	21.01	798.06
Assets
Inventories	3,298.17	2,318.50	933.36	1,268.62
Trade Receivables	1,562.01	764.65	404.80	571.65
Long-term loans and advances	50.20	0.20	-	-
Short-term Loans and Advances	31.64	17.81	24.32	48.03

Long-term Borrowings

Our Companys Long-Term Borrowings stood at 722.06 lakhs as of June 30, 2025 as compared to 739.77 lakhs as of March 31, 2025, reflecting a marginal decrease of 2.40% mainly attributable to repayment of existing borrowings. Long-Term Borrowings had increased by 37.65% from 537.38 lakhs in FY 2023-24 to 739.77 lakhs in FY 2024-25, primarily due to additional unsecured term loan raised to by the Company amounting to Rs. 241.75 Lakhs from Sundaram Home Finance Limited to support expansion and working capital requirements. Further, borrowings had increased by 19.31% from 450.43 lakhs in FY 2022-23 to 537.38 lakhs in FY 2023-24 which is primarily due to unsecured loans taken by the Company amounting to Rs. 50 lakhs approx.. from multiple banks or financial institutions to cater working capital requirements.

Short-term Borrowings

Short-Term Borrowings of our Company stood at 151.54 lakhs as of June 30, 2025 as against 116.78 lakhs as of March 31, 2025, registering an increase of 29.75% attributable to higher reliance on short-term funding. During FY 2024-25, Short-Term Borrowings decreased by 48.63% from 227.33 lakhs in FY 2023-24 to 116.78 lakhs, mainly due to repayment of bank facilities. In FY 2023-24, borrowings had increased by 24.68% from 182.29 lakhs in FY 2022-23 to 227.33 lakhs.

Trade Payables

Trade payables have largely tracked the Companys procurement of gold and other raw materials, reflecting the scale of operations and working capital needs. As on June 30, 2025, trade payables rose to 563.73 lakhs from 125.21 lakhs as on March 31, 2025, an increase of 349.96%, compared to a 43.59% increase in purchases and incidental expenses during the same period ( 10,201.14 lakhs in Q1 FY 2026 vs. 7,106.34 lakhs average quarterly purchases in FY 2025). For FY 2024-25, trade payables increased by 496.01% to 125.21 lakhs from 21.01 lakhs in FY 2023-24, while purchases rose by 227.63% to 23,407.20 lakhs from 7,146.92 lakhs, indicating higher procurement volumes to support manufacturing-led growth. In contrast, during FY 2023-24, trade payables fell sharply by 97.37% to 21.01 lakhs from 798.06 lakhs in FY 2022-23, even though purchases increased modestly by 14.44% to 7,146.92 lakhs from 6,244.40 lakhs, primarily due to clearance of outstanding dues. Overall, the movement in trade payables reflects procurement trends, with sharper increases in payables relative to purchases in recent periods, consistent with business expansion and growing manufacturing activity.

Inventories

Inventories stood at 3,298.17 lakhs as of June 30, 2025 compared to 2,318.50 lakhs as of March 31, 2025, representing an increase of 42.27% due to stocking up of gold and jewellery items in anticipation of seasonal demand. This inventory buildup is aligned with the Companys strong sales momentum, as revenue for Q1 FY 2026 stood at 10,003.42 lakhs, reflecting a significant increase compared to earlier periods. Inventories had increased by 148.31% from 933.36 lakhs in FY 2023-24 to 2,318.50 lakhs in FY 2024-25 in line with rapid scale-up of operations and strong growth in revenue, which rose to 26,325.18 lakhs in FY 2025 from 12,452.30 lakhs in FY 2024. However, in FY 2023-24, inventories had decreased by 26.45% from 1,268.62 lakhs in FY 2022-23 to 933.36 lakhs.

Trade Receivables

Trade Receivables were 1,562.01 lakhs as of June 30, 2025 as against 764.65 lakhs as of March 31, 2025, marking an increase of 104.21% in line with increased sales volumes and extended credit to customers. In FY 2024-25, receivables increased by 88.91% from 404.80 lakhs in FY 2023-24 to 764.65 lakhs. However, in FY 2023-24, receivables had decreased by 29.19% from 571.65 lakhs in FY 2022-23 to 404.80 lakhs as outstanding dues were cleared and working capital was rationalized..

Short-term Loans and Advances

Short-Term Loans and Advances stood at 31.64 lakhs as of June 30, 2025 compared to 17.81 lakhs as of March 31, 2025, an increase of 77.72%. In FY 2024-25, these advances had declined by 26.72% from 24.32 lakhs in FY 2023-24 to 17.81 lakhs, reflecting lower advances outstanding. In FY 2023-24, short-term advances had declined by 49.37% from 48.03 lakhs in FY 2022-23 to 24.32 lakhs.

Long-term Loans and Advances

Long-Term Loans and Advances stood at 50.20 lakhs as of June 30, 2025 compared to 0.20 lakhs as of March 31, 2025, reflecting significant fresh outlays made by the Company during the first quarter of FY 2025-26 due to payment of deposit of new leased property. There were no Long-Term Loans and Advances reported as of March 31, 2024 and March 31, 2023, highlighting that this line item has newly emerged due deposits made by the Company.

RESULT OF OUR OPERATIONS

The following table sets forth detailed total income data from our Restated Statement of profit and loss for the period ended June 30, 2025 and financial year ended March 31, 2025, 2024 and 2023, the components of which are also expressed as a percentage of total Income for such period.

Particulars			For the Quarter ended 30th June 2025						For the year ended 31st March 2025						For the year ended 31st March 2024						For the year ended 31st March 2023
			Amount (in			% of Total			Amount (in			% of Total			Amount (in			% of Total			Amou nt (in		% of Total
			Lakhs)			income			Lakhs)			income			Lakhs)			income			Lakhs)		income
I. Revenue From Operations	10,003.4	100.00		26,325.1				100.00			12,452.3			100.00			6,752.7			100.00
	2	%		8				%			0			%			8			%
Other income	-	0.00%		-				0.00%			-			0.00%			0.24			0.00%
II. Total Income	10,003.4	100.00		26,325.1				100.00			12,452.3			100.00			6,753.0			100.00
	2	%		8				%			0			%			1			%
III. Expenses:
Cost of Materials Consumed	10,055.9	100.53		23,296.7				88.50%			6,885.37			55.29%			6,102.5			90.37%
	9	%		4													9
Purchase of Traded Goods	96.32	0.96%		2,559.34				9.72%			4,220.34			33.89%			993.12			14.71%
Changes in Inventories of Finished	(834.53)	-8.34%		(1,274.6				-4.84%			596.80			4.79%			(686.28			-
Goods				8)													)			10.16%
Employee Benefits Expense					35.86		0.36%			93.56			0.36%			54.93			0.44%			67.47		1.00%
Finance Costs					22.14		0.22%			102.89			0.39%			84.48			0.68%			71.73		1.06%
Depreciation and amortization					1.58		0.02%			5.40			0.02%			4.13			0.03%			2.63		0.04%
expense
Other Expenses					25.45		0.25%			133.61			0.51%			80.37			0.65%			80.03		1.19%
Total Expenses					9,402.81		94.00%			24,916.8			94.65%			11,926.4			95.78%			6,631.3		98.20%
										5						3						0
IV. Profit Before Tax (II-III)					600.61		6.00%			1,408.32			5.35%			525.87			4.22%			121.71		1.80%
V. Tax Expense:
Current Tax					152.94		1.53%			367.41			1.40%			141.54			1.14%			30.90		0.46%
Deferred Tax					0.37		0.00%			(0.14)			0.00%			(0.19)			0.00%			(0.13)		0.00%
Short/Excess Provision of Income					-					(0.18)			0.00%			-			0.00%			-		0.00%
Tax
Total Tax Expenses					153.31		1.53%			367.09			1.39%			141.36			1.14%			30.77		0.46%
VI. Profit/(Loss) for the period (IV -					447.30		4.47%			1,041.23			3.96%			384.51			3.09%			90.94		1.35%
V)

PRINCIPAL COMPONENTS OF STATEMENT OF PROFIT OR LOSS

Set forth below are the principal components of statement of profit and loss from our operations:

TOTAL INCOME

Our total income comprises of (i) Revenue from Operations; and (ii) Other Income.

Revenue from Operations

Our revenue from operations comprises revenue from the sale of our products. We are engaged in the business of offering a wide range of traditional and designer made gold jewellery. Revenue from operations accounted for 100% of our total income for the period ended June 30, 2025 and financial years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively. We provide a broad assortment of jewellery items, focusing on the design, manufacturing, and sale of high-quality products such as necklaces, bracelets, earrings, and rings in different category like Jadtar, Meenakari, Polki, Bridal Festive & Bridal Jewellery.

Other Income

Other income includes interest on income tax refund in the financial year 2022-23.

TOTAL EXPENSE

Our expenses comprise of: (i) Cost of Materials consumed; (ii) Purchase of Traded Goods (iii) Change in Inventories of Finished Goods; (iv) Employee Benefits Expense; (v) Finance Costs; (vi) Depreciation and Amortization expense; and (vii) Other Expenses.

Cost of Materials consumed

Cost of material consumed includes expenditure on raw materials and components used in our manufacturing process. These costs were 10,055.99 Lakhs, 23,296.74 lakhs, 6,885.37 lakhs, and 6,102.59 lakhs for the Period and financial years ended June 30, 2025, March 31, 2025, 2024, and 2023 respectively, representing 100.53%, 88.50%, 55.29%, and 90.37% of total income. It primarily includes the cost of gold metal, precious & semi-precious stones, synthetic and natural stones, beads, and pearls used in the production of jewellery. Its also includes other incidental expenses related to the manufacturing of jewellery.

Purchase of Traded Goods

Purchase of traded goods includes procurement of finished jewellery for sale. These amounted to 96.32 Lakhs, 2,559.34 lakhs, 4,220.34 lakhs, and 993.12 lakhs for the period and financial years ended June 30, 2025, March 31, 2025, 2024, and 2023 respectively, accounting for 0.96%, 9.72%, 33.89%, and 14.71% of total income. Purchase of traded goods consist of purchase of gold jewellery for trading purpose.

Change in Inventories of Finished Goods

Changes in inventories amounted to (834.53) lakhs, (1,274.68) lakhs, 596.80 lakhs, and (686.28) lakhs for the period and financial years ended June 30, 2025, March 31, 2025, 2024, and 2023 respectively, representing -8.34%, -4.84%, 4.79%, and -10.16% of total income. The negative value in Quarter 1 of 2025-26 and financial year 2024-25 as well as FY 2022-23 indicates a decrease in closing inventory levels compared to opening balances.

Employee benefits expense

Employee benefits expense primarily comprises salaries, wages, and staff welfare expenses. These amounted to 35.86 Lakhs, 93.56 lakhs, 54.93 lakhs, and 67.47 lakhs for the period and financial years ended March 31, 2025, 2024, and 2023 respectively, accounting for 0.36%, 0.36%, 0.44%, and 1.00% of total income. Our Employee Benefits Expense primarily comprises of Salaries, Wages & Bonus, Staff Welfare Expenses, Directors Remuneration .

Finance costs

Finance costs include interest on borrowings and other finance charges, amounting to 22.14 lakhs, 102.89 lakhs, 84.48 lakhs, and 71.73 lakhs for the period and financial years ended June 30, 2025, March 31, 2025, 2024, and 2023 respectively, accounting for 0.22%, 0.39%, 0.68%, and 1.06% of total income. Our finance cost includes Interest expense on business working capital Loan, and Bank Charges & other borrowing cost such as Loan Processing Fees and Other Charges.

Depreciation and Amortization expenses

Depreciation and amortization expenses represent the allocation of cost of tangible and intangible assets over their useful lives. These expenses were 1.58 Lakhs, 5.40 lakhs, 4.13 lakhs, and 2.63 lakhs for the period and financial years ended June 30, 2025, March 31, 2025, 2024, and 2023 respectively, accounting for 0.02%, 0.02%, 0.03%, and 0.04% of total income. Depreciation includes depreciation on Plant & Machinery, CCTV Camera, Furniture & Fixtures, Computer & Peripherals & Office Equipment.

Other Expenses

Other expenses comprise administrative, selling, and miscellaneous business costs. These were 25.45 lakhs, 133.37 lakhs, 80.37 lakhs, and 80.03 lakhs for the period and financial years ended June 30, 2025, March 31, 2025, 2024, and 2023 respectively, accounting for 0.25%, 0.51%, 0.65%, and 1.19% of total income. Our Other Expenses consists of Administrative Expenses and Selling & Distribution Expenses which further consist Hallmarking Charges, Repairs and Maintenance Audit Fees, Brokerage Or Commission, Insurance, Legal & Consultancy Charges, Courrier Charges, CSR Expenses, Electricity Charges, Exhibition Insurance, Listing Fees, Office Expenses, Packing, Printing And Stationary, Professional Fees, Telephone Charges, Tour and Travelling Expenses, Telecommunication Expense, Exhibition Expenses and other miscellaneous expense.

COMPARISON OF FINANCIAL YEAR 2024-25 WITH FINANCIAL YEAR 2023-24

TOTAL INCOME:

Total Income mirrored the growth in revenue, rising to 26,325.18 lakhs in FY 2024-25 compared to 12,452.30 lakhs in FY 2023-24. This increase in revenue from operations is discussed below:

Revenue from Operations

Revenue from Operations grew substantially from 12,452.30 lakhs in FY 2023-24 to 26,325.18 lakhs in FY 2024-25, representing a robust growth of 111.4% year-on-year. This strong performance was primarily driven by higher sales volumes, improved realizations, and the Companys strategic shift towards manufacturing-led growth. The jewellery industry benefited from a sharp surge in gold prices during the year, which provided a significant boost to revenues. Gold prices in India, having already risen by approximately 21% in 2024, increased further by 27% by mid-2025, reaching an all-time high of 101,078 per 10 grams in June 2025. This unprecedented appreciation directly contributed to higher realizations and, in turn, accelerated revenue growth for the Company.

In addition to favorable pricing trends, the Company strengthened its operational scale by infusing additional working capital to support procurement and manufacturing activities. During FY 2024-25, the Company completed a preferential allotment of equity shares amounting to 8.84 crores (raised in July August 2024) and secured a term loan of 2.41 crores from Sundaram Home Finance Limited. The infusion of long-term capital, coupled with the debt facility, enabled the Company to bolster its working capital base, ensure timely procurement of raw materials, and expand production capacity to meet increasing demand. This financial support not only provided stability in a period of high gold price volatility but also allowed the Company to scale up manufacturing and efficiently service its growing B2B customer base.

State-wise Revenue from Operations:

(Amount in Lakhs)

		For the period / year ended on
State
	March 31, 2025	March 31, 2024
Gujarat	19,579.07	8,881.64
West Bengal	1,267.25	317.01
Tamil Nadu	762.69	153.35
Maharashtra	914.75	249.75
Karnataka	589.76	227.36
Uttar Pradesh	839.99	418.67
Delhi	197.10	95.15
Kerala	527.93	94.67
Haryana	200.25	249.34
Others	1,446.38	1,765.34
Total	26,325.18	12,452.30

Other Income:

The Company did not have any other income during the year under comparison.

EXPENDITURE

Our total expenses increased from Rs. 11,926.43 lakhs in financial year 2023-24 to Rs. 24,916.85 lakhs in the financial year 2024-25. The reasons for change are discussed below:

Cost of Materials Consumed

Cost of Materials Consumed grew to 23,296.74 lakhs in FY 2024-25 from 6,885.37 lakhs in FY 2023-24, increasing its share of total income to 88.5% from 55.3%. This significant rise was primarily attributable to the unprecedented increase in gold prices during FY 2024-25. Domestic gold prices surged by approximately 27% year-on-year, touching an all-time high of over 1,01,000 per 10 grams in June 2025. Higher procurement costs for raw gold directly translated into an elevated cost of materials consumed. Additionally, the Company increased its scale of operations to cater to rising demand for designer jewellery and investment-grade products. as well as company has almost 90% of its revenue generate from manufacturing items which directly affect the cost of material consumed rather than purchase of traded goods.

Purchase of Traded Goods

Purchase of Traded Goods declined from 4,220.34 lakhs in FY 2023-24 to 2,559.34 lakhs in FY 2024-25, reducing its proportion from 33.9% to 9.7%, reflecting a shift towards in-house production. This reduction reflects a strategic shift by the Company towards manufacturing and designing / redesigning, leveraging the additional working capital infused through preferential share issue and borrowings.

Changes in Inventories of Finished Goods

In FY 2024-25, the Changes in Inventories of Finished Goods amounted to ( 1,274.68 lakhs) as compared to an increase of 596.80 lakhs in FY 2023-24, reflecting a clear reduction in inventory levels. This decline was primarily driven by higher sales volumes of Jewellery and investment products, as consumers shifted preferences amid a sharp 27% rise in gold prices, which dampened demand for heavier jewellary. The Company strategically liquidated finished goods stock to align with changing market dynamics and improve turnover. Furthermore, the infusion of additional working capital of 8.5 crores through a preferential share issue and 2.5 crores via loan facilities enabled more efficient inventory management and faster stock conversion into revenues. In contrast, the inventory build-up in FY 2023-24 was largely attributable to sourcing and trading activity to capture festive and wedding demand, whereas FY 2024-25 reflected a leaner and more efficient inventory cycle, underscoring prudent working capital utilization.

Employee Benefits Expenses

In FY 2024-25, Employee Benefits Expenses stood at 93.56 lakhs as compared to 54.93 lakhs in FY 2023-24, reflecting an increase of 70.3%. Despite this rise in absolute terms, employee costs remained stable at around 0.36% of total income, indicating that the Company managed to scale operations significantly without a proportionate increase in manpower costs. The increase in expenses primarily relates to expansion in business volumes, recruitment of additional skilled personnel, and increments provided to retain talent in a competitive market environment. The Companys ability to maintain employee benefits expenses at a consistent proportion of income demonstrates its operational efficiency and effective workforce utilization, even during a period of substantial revenue growth driven by elevated gold prices and higher production levels.

Finance Costs

In FY 2024-25, Finance Costs increased to 102.89 lakhs from 84.48 lakhs in FY 2023-24, marking a growth of 21.8%. This rise was primarily on account of additional borrowings of 2.5 crores availed during the year to meet working capital requirements, coupled with higher utilization of banking facilities to support the scale-up of operations. Despite this increase, finance costs remained modest at 0.39% of total income, reflecting prudent debt management and efficient capital structuring as the Company simultaneously infused equity through preferential share allotments to balance its funding needs.

Depreciation & Amortization Expenses

Depreciation and amortization expenses stood at 5.40 lakhs in FY 2024-25 as compared to 4.13 lakhs in FY 2023-24, representing an increase of 30.8%. The rise is attributable to additions to plant and machineries made during the year to enhance operational capacity and efficiency. However, as a proportion of total income, depreciation remained negligible at 0.02%, underscoring the asset-light nature of the Companys business model, where the bulk of operating costs continue to be driven by raw material procurement, primarily gold, rather than heavy capital expenditure.

Other Expenses

In FY 2024-25, Other Expenses increased significantly to 133.61 lakhs as compared to 80.37 lakhs in FY 2023-24, representing a rise of 66.2%. The increase was mainly attributable to higher Legal and Professional Expenses, which rose to 41.53 lakhs from 7.09 lakhs in the previous year. Exhibition Expenses also grew to 32.99 lakhs in FY 2024-25 from 24.10 lakhs in FY 2023-24, as the Company actively participated in trade fairs and industry events to strengthen its market presence and branding initiatives. Other expenses include Auditor Remuneration, Advertisement and Sales Promotion

Expenses, Exhibition Expenses, Legal & Professional Expenses. The Company also incurred Corporate Social Responsibility (CSR) Expenses of 4.60 lakhs and Directors Sitting Fees of 0.90 lakhs in FY 2024-25, as well as major expenses under the head of Legal & Professional Expenses is due to increasing in authorized capital and other professional fees for payment of IPO expense which were absent in the previous year, reflecting compliance with statutory obligations and governance practices.

Profit before Tax (PBT)

In FY 2024-25, the Company recorded a Profit Before Tax (PBT) of 1,408.32 lakhs as compared to 525.87 lakhs in FY 2023-24, reflecting a substantial growth of 167.8%, primarily driven by higher revenue from operations supported by elevated gold prices, efficient working capital deployment, and improved operating leverage.

Tax

Total Tax Expenses increased proportionately to 367.09 lakhs in FY 2024-25 as against 141.36 lakhs in FY 2023-24, in line with higher profitability.

Profit After Tax (PAT)

Profit After Tax (PAT) surged to 1,041.23 lakhs in FY 2024-25 as against 384.51 lakhs in FY 2023-24, registering an impressive growth of 170.7%. The PAT margin improved from 3.1% in FY 2023-24 to 4.0% in FY 2024-25, highlighting the Companys ability to convert robust revenue growth into enhanced bottom-line performance, supported by disciplined cost management and efficient tax planning.

The improvement in profitability was driven by several strategic factors, including:

Shift in revenue mix from trading to a manufacturing-led business model, resulting in higher value addition and better margins.

Strengthening of working capital base through funds raised by way of preferential issue and additional debt, enabling smoother business operations and scale-up.

Introduction of nearly 500 new jewellery designs during the year, which contributed to greater product diversity and customer acquisition.

Active participation in exhibitions, which not only boosted brand visibility but also facilitated the addition of corporate clients and expansion of the B2B customer base.

These initiatives collectively reinforced the Companys growth trajectory and laid a strong foundation for sustainable profitability.

COMPARISON OF FINANCIAL YEAR 2023-24 WITH FINANCIAL YEAR 2022-23

TOTAL INCOME

Total Income rose sharply to 12,452.30 lakhs in FY 2023-24 compared to 6,753.01 lakhs in FY 2022-23. This increase was largely driven by higher revenue from operations, as discussed below.

Revenue from Operations

Revenue from Operations increased significantly from 6,752.78 lakhs in FY 2022-23 to 12,452.30 lakhs in FY 2023-24, reflecting a strong growth of 84.4%. The sharp rise was supported by higher sales volumes and improved realizations, as domestic gold prices witnessed a notable appreciation of about 24% during 2023-24, moving from an average of 63,200 per 10 grams in 2023 to over 78,200 per 10 grams in 2024. This upward trend in gold prices not only enhanced realizations but also drove investor demand for gold as a safe-haven asset. The Company benefited from strong festive and wedding-related demand, along with increased trading activity, thereby boosting overall revenue.

State-wise Revenue from Operations:

(Amount in Lakhs)

State	March 31, 2024	March 31, 2023
Gujarat	8,881.64	2,084.07
West Bengal	317.01	144.08
Tamil Nadu	153.35	133.37
Maharashtra	249.75	663.93
Karnataka	227.36	273.45
Uttar Pradesh	418.67	540.36
Delhi	95.15	234.59
Kerala	94.67	196.54
Haryana	249.34	299.60
Others	1,765.34	2,182.77
Total	12,452.30	6,752.78

Other Income

Other income was negligible at nil in FY 2023-24, as against a marginal 0.24 lakhs in FY 2022-23.

EXPENDITURE

Total expenses increased to 11,926.43 lakhs in FY 2023-24 from 6,631.30 lakhs in FY 2022-23. The movement in key expense heads is discussed below:

Cost of Materials Consumed

Cost of Materials Consumed grew to 6,885.37 lakhs in FY 2023-24 from 6,102.59 lakhs in FY 2022-23, an increase of 12.8%. However, as a percentage of total income, it declined sharply from 90.4% in FY 2022-23 to 55.3% in FY 2023-24, reflecting improved raw material efficiency due to better realizations on account of higher gold prices. And due to change in products mix of manufacturing and trading business which effect the marginal percentage swift from cost of materials consumed to purchase of traded goods.

Purchase of Traded Goods

Purchase of Traded Goods increased sharply to 4,220.34 lakhs in FY 2023-24 from 993.12 lakhs in FY 2022-23, marking a growth of 325%. As a share of total income, this rose to 33.9% in FY 2023-24 from 14.7% in FY 2022-23, as the Company relied more on sourcing finished and semi-finished products to meet festive demand and ensure timely deliveries.

Changes in Inventories of Finished Goods

In FY 2023-24, there was an increase in inventories of 596.80 lakhs compared to a reduction of 686.28 lakhs in FY 2022-23. This build-up reflected the Companys strategy to stock up in anticipation of higher festive and seasonal demand, in contrast to FY 2022-23, when inventories were liquidated to support sales.

Employee Benefits Expenses

Employee Benefits Expenses stood at 54.93 lakhs in FY 2023-24 as against 67.47 lakhs in FY 2022-23, reflecting a decline of 18.6%. As a proportion of total income, the expenses fell to 0.44% in FY 2023-24 from 1.0% in FY 2022-23, highlighting improved manpower efficiency and cost optimization.

Finance Costs

Finance Costs increased to 84.48 lakhs in FY 2023-24 from 71.73 lakhs in FY 2022-23, a rise of 17.8%, owing to higher working capital borrowings to support increased scale of operations. As a proportion of income, finance costs remained at a moderate level of 0.68% in FY 2023-24.

Depreciation & Amortization Expenses

Depreciation rose to 4.13 lakhs in FY 2023-24 compared to 2.63 lakhs in FY 2022-23, primarily due to additions to fixed assets. However, as a share of income, depreciation remained minimal at 0.03%.

Other Expenses

Other Expenses were broadly stable at 80.37 lakhs in FY 2023-24 as against 80.03 lakhs in FY 2022-23. While certain heads such as Postage & Courier Expenses and Exhibition Expenses, travelling expense remained higher during the year, these were effectively offset by the absence of commission expenses ( 21.64 lakhs in FY 2022-23). As a proportion of total income, Other Expenses declined to 0.65% in FY 2023-24 from 1.19% in FY 2022-23, reflecting improved operating leverage and better absorption of overheads on account of significant revenue growth. The Companys strategy of connecting directly with the market and customers has also enabled savings on commission costs, thereby contributing to greater efficiency in expense management.

Profit Before Tax (PBT)

PBT increased sharply to 525.87 lakhs in FY 2023-24 from 121.71 lakhs in FY 2022-23, representing a growth of 332.1%, mainly driven by higher revenues, improved gross margins, and operating efficiencies.

Tax

Total Tax Expenses rose to 141.36 lakhs in FY 2023-24 compared to 30.77 lakhs in FY 2022-23, in line with the higher profitability.

Profit After Tax (PAT)

Profit After Tax (PAT) increased substantially to 384.51 lakhs in FY 2023-24 from 90.94 lakhs in FY 2022-23, representing a growth of 322.8%. The PAT margin improved from 1.3% in FY 2022-23 to 3.1% in FY 2023-24, underscoring the Companys ability to translate higher revenues into stronger bottom-line performance. The improvement was primarily driven by the Significant increase in sales of manufactured goods, which in FY 2023-24 exceeded the entire revenue from operations achieved in FY 2022-23. Reinvestment of internal accruals to support growth initiatives. Additional borrowings, which, along with internal accruals, helped in meeting the working capital requirements of the Company and supporting higher scale of operations. This combination of revenue expansion, efficient resource utilization, and strengthened working capital base contributed to the substantial improvement in profitability during the year.

DISCUSSION ON THE STATEMENT OF CASH FLOWS

The following table sets forth information relating to our Companys statement of cash flows for the financial years indicated:

		For the Period / Year ended on
Particulars	June 30, 2025		March 31, 2025	March 31, 2024	March 31, 2025
Net cash flows generated/ (used in) from operating activities	(749.83)		125.38	(105.98)	(136.69)
Net cash flows generated/ (used in) investing activities	(33.96)		(5.97)	(7.98)	(2.35)
Net cash flows generated/ (used in) financing activities	(5.08)		895.06	69.81	141.97
Net increase/(decrease) in cash and cash equivalents	(788.88)		1,014.47	(44.15)	2.93

OPERATING ACTIVITIES:

For the period ended on June 30, 2025, net cash used in operating activities was 749.83 lakhs. This comprised of the profit before tax of 600.61 lakhs, which was adjusted for depreciation and amortization expenses of 1.58 lakhs and finance cost of 22.14 lakhs. The resultant operating profit before working capital changes was 624.33 lakhs, which was significantly impacted by higher working capital requirements. Key adjustments included an increase in inventories of 979.67 lakhs, trade receivables of 797.37 lakhs, and other current assets of 184.46 lakhs, reflecting expansion in scale of operations. These were partially offset by an increase in trade payables of 438.53 lakhs, other current liabilities of 213.47 lakhs, and short-term provisions of 7.99 lakhs. After accounting for income tax payments of 8.81 lakhs, the Company reported a net outflow of cash from operating activities during the quarter.

For the year ended on March 31, 2025 net cash generated from operating activities was 125.38 lakhs. This comprised of the profit before tax of 1,408.32 lakhs, which was primarily adjusted for depreciation and amortization expenses of 5.40 lakhs and finance cost of 81.16 lakhs. The resultant operating profit before working capital changes was 1,494.88 lakhs, which was further adjusted for an increase in inventories amounting to 1,385.15 lakhs, trade receivables of 359.85 lakhs, and other current assets of 75.44 lakhs. Additionally, there was a decrease in short-term loans and advances of 6.51 lakhs, alongside an increase in other current liabilities of 535.82 lakhs, short-term provisions of 22.13 lakhs, and trade payables of 104.20 lakhs. After accounting for income tax paid of 217.52 lakhs, the Company reported a positive net cash inflow from operating activities during FY 2024-25

For the year ended on March 31, 2024, net cash used in operating activities was 105.98 lakhs. This comprised of the profit before tax of 525.87 lakhs, which was adjusted for depreciation and amortization expenses of 4.13 lakhs and finance cost of 62.18 lakhs. The resultant operating profit before working capital changes was 592.18 lakhs, which was primarily adjusted for an increase in inventories of 335.25 lakhs, other current assets of 58.13 lakhs, and short-term loans and advances of 23.71 lakhs. There was also an increase in trade receivables of 166.85 lakhs, alongside a decrease in trade payables of 777.05 lakhs and other current liabilities of 525.80 lakhs, partly offset by an increase in short-term provisions of 30.88 lakhs. After accounting for income tax paid of 10.15 lakhs, the Company reported a net cash outflow from operating activities in FY 2023-24.

For the year ended on March 31, 2023, net cash used in operating activities was 136.69 lakhs. This comprised of the profit before tax of 121.71 lakhs, which was adjusted for depreciation and amortization expenses of 2.63 lakhs and finance cost of 71.73 lakhs. The resultant operating profit before working capital changes was 196.08 lakhs, which was primarily adjusted for a decrease in inventories amounting to 828.09 lakhs and trade receivables of 367.03 lakhs, along with a decrease in other current assets of 98.87 lakhs. These positive adjustments were offset by a decrease in trade payables of 146.21 lakhs, and an increase in other current liabilities of 83.70 lakhs. After accounting for income tax paid of 4.35 lakhs, the Company reported a net cash outflow from operating activities in FY 2022-23.

INVESTING ACTIVITIES

For the quarter ended June 30, 2025 , net cash used in investing activities was 33.96 lakhs, attributable entirely to the purchase of fixed assets. This reflects the Companys ongoing investment in operational infrastructure to support its growing scale of business.

For the financial year ended March 31, 2025 , net cash used in investing activities stood at 5.97 lakhs, as compared to 7.98 lakhs in FY 2023-24. The expenditure was primarily towards capital assets, underscoring the Companys continued asset-light business approach, with only marginal capital outlays focused on improving efficiency rather than capacity expansion.

For the financial year ended March 31, 2024, net cash used in investing activities was 7.98 lakhs, higher than 2.35 lakhs in FY 2022-23. The increase was on account of incremental additions to fixed assets, reflecting the Companys strategy to strengthen its infrastructure in line with growing operational requirements.

For the financial year ended March 31, 2023 , net cash used in investing activities stood at 2.35 lakhs, primarily towards purchase of fixed assets. The minimal outflow during this year further emphasizes the Companys asset-light model, with capital requirements largely concentrated on working capital rather than fixed investments.

FINANCING ACTIVITIES

For the quarter ended June 30, 2025 , net cash used in financing activities was 5.08 lakhs. This primarily comprised proceeds from long-term borrowings of 17.71 lakhs and net inflows from short-term borrowings of 34.76 lakhs, which were offset by interest payments of 22.14 lakhs. The marginal net outflow reflects the Companys prudent balancing of debt funding with repayment obligations during the quarter.

For the financial year ended March 31, 2025 , net cash generated from financing activities stood at 895.06 lakhs, a substantial increase compared to 69.81 lakhs in FY 2023-24. The sharp rise was primarily due to the issue of share capital through preferential allotment amounting to 884.40 lakhs, alongside net proceeds from long-term borrowings of 202.38 lakhs. These inflows were partially offset by repayment of short-term borrowings of 110.55 lakhs and interest payments of 81.16 lakhs. The financing inflows during FY 2024-25 played a pivotal role in strengthening the Companys working capital position and supporting its rapid business expansion.

For the financial year ended March 31, 2024, net cash from financing activities amounted to 69.81 lakhs, driven mainly by long-term borrowings of 86.95 lakhs and short-term borrowings of 45.05 lakhs, offset by interest outflows of 62.18 lakhs. The inflows, though modest, were sufficient to provide liquidity support in a year of significant revenue growth.

For the financial year ended March 31, 2023 , net cash from financing activities was 141.97 lakhs, primarily arising from long-term borrowings of 450.43 lakhs, partially offset by repayments of short-term borrowings amounting to 236.72 lakhs and interest costs of 71.73 lakhs.

RELATED PARTY TRANSACTIONS

For further information, kindly refer "Restated Statement of Related Party Transaction" under section titled "Restated Financial Information" beginning from page no. 230 of this Draft Red Herring Prospectus.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT THE MARKET RISK

In the course of undertaking our business, we are exposed to the following risks arising from financial instruments, which include credit risk, liquidity risk and market risk. Our primary focus is to achieve better predictability of financial markets and seek to minimize potential adverse effects on our financial performance.

Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or fail to pay amounts due causing financial loss. The potential activities where credit risks may arise include from security deposits with bank, trade receivables, loans and advances and other financial assets. The maximum credit exposure associated with financial assets is equal to the carrying amount. Our exposure to credit risk is influenced mainly by the individual characteristics of each customer and the geography in which it operates. Credit risk is managed through credit approvals, establishing credit limits, and continuously monitoring the creditworthiness of customers to which our Company grants credit terms in the normal course of business.

Liquidity Risk

Liquidity risk is the risk that we will encounter difficulty in meeting the obligations associated with its financial liabilities that are proposed to be settled by delivering cash or other financial asset. Our financial planning has ensured, as far as possible, that there is sufficient liquidity to meet the liabilities whenever due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to our reputation. We have practiced financial diligence and syndicated adequate liquidity in all business scenarios.

Market Risk

Market risk is the risk that results in changes in market prices, such as bullion rates, interest rates and other price like equity prices, which will affect our revenue or the value of our materials purchased or consumed.

EFFECT ON INFLATION

We are affected by inflation as it has an impact on the material cost, karigar costs, etc. In line with changing inflation rates, we rework our margins so as to absorb the inflationary impact.

INFORMATION REQUIRED AS PER ITEM (11) (II) I (iv) OF PART A OF SCHEDULE VI TO THE SEBI REGULATIONS, 2018:

1. Unusual or infrequent events or transactions

Except as described in this Draft Red Herring Prospectus, there have been no other events or transactions to the best of our knowledge which may be described as "unusual" or "infrequent".

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

Our business has been subject, and we expect it to continue to be subject to significant economic changes arising from the trends identified above in Factors Affecting our Results of Operations and other material changes. To our knowledge, except as we have described in the Draft Red Herring Prospectus, there are no known factors which we expect to bring about significant economic changes.

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

Apart from the risks as disclosed under Section titled "Risk Factors" beginning on page no. 37, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. 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.

Apart from the risks as disclosed under Section titled "Risk Factors" beginning on page no. 37, there are no known factors that may adversely affect our business prospects, results of operations and financial condition.

5. Total turnover of each major industry segment in which the issuer company operated.

We operate in only one major segment.

6. Status of any publicly announced new products or business segment.

Otherwise as stated in the Draft Red Herring Prospectus and in the section "Business Overview" beginning on page no.153, our company has not publicly announced any new business segment till the date of this Draft Red Herring Prospectus.

7. The extent to which business is seasonal.

Our business is subject to certain seasonal variations which impact our sales and operations. Demand for jewellery in India is traditionally influenced by cultural, religious, and social factors, resulting in peak sales during specific periods of the year. The months coinciding with the wedding season (typically between October to February and April to June) and festive occasions such as Diwali, Akshaya Tritiya, Navratri, and Dhanteras generally witness higher demand for gold jewellery.

Additionally, our participation in national and international jewellery exhibitions and trade fairs also contributes to fluctuations in sales during the periods in which these events are held, as such exhibitions often generate bulk orders from B2B corporate clients, wholesalers, and retail chains.

While these factors lead to stronger sales in certain months, the Company has diversified its product portfolio and enhanced its customer base in order to smoothen revenue flow throughout the year. Nevertheless, seasonality remains a characteristic of the jewellery industry, and our results of operations may vary across different quarters depending on the timing of festive and wedding seasons, as well as exhibition schedules.

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

The percentage of contribution of our Companys customers vis-a-vis the total revenue from operations respectively for the period ended June 30, 2025 and financial year ended March 31, 2025, 2024 and 2023 is as follows:

Particulars	% Contribution to revenue from operations for the period ended
	June 30, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Top 1 Customer	23.59%	26.39%	19.99%	11.46%
Top 3 Customers	46.32%	38.73%	39.91%	32.87%
Top 5 Customers	64.69%	48.36%	48.95%	42.44%
Top 10 Customers	83.48%	62.43%	61.34%	51.89%

The percentage of contribution of our Companys suppliers vis-a-vis the total purchases respectively for the period ended June 30, 2025 and financial year ended March 31, 2025, 2024 and 2023 is as follows:

Particulars	% Contribution to Purchases from operations for the period ended
	June 30, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Top 1 Supplier	21.70%	11.79%	22.36%	38.66%
Top 3 Suppliers	45.10%	34.07%	47.70%	68.00%
Top 5 Suppliers	60.49%	49.00%	62.77%	89.41%
Top 10 Suppliers	81.83%	72.52%	81.99%	95.03%

9. Competitive conditions:

We face competition from existing and potential competitors which is common for any business. We have, over a period, developed certain competitors who have been discussed in section titles "Business Overview" beginning on page no. 153 of this Draft Red Herring Prospectus.