Sonaselection India Ltd Management Discussions

RESULTS OF OPERATIONS

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 three month ended June 30, 2025 and for the Fiscals 2025, 2024 and 2023 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 Statements, as restated have been derivedfrom our special purpose audited financial statements 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 readers 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 "Forward Looking Statements" and "Risk Factors" on pages 27 and 44 respectively, and elsewhere in this Draft Red Herring Prospectus.

Our Fiscal ends on March 31 of each year. Accordingly, all references to a particular Fiscal are to the 12 months ended March 31 of that year.

Business Overview

We are an integrated fabric manufacturing and processing company engaged in the production of value added products. Leveraging advanced technology, well established production capabilities and stringent quality systems, we convert raw textiles into finished, high-quality fabrics. Our model enables us to offer a diversified product portfolio, maintain consistent quality, support innovation in fabric development and provide our customers with reliable, cost-efficient and timely solutions, thereby positioning us as a preferred partner for brands seeking consistency, innovation and faster delivery timelines. We specialize in the manufacturing of 100% cotton fabric, cotton lycra (stretch) fabric, cotton blends, polyester blends, and in the processing of fabric including 100% cotton, cotton blends, polyester-viscose (P/V) and polyester fabric.

Our manufacturing process commences with (i) the procurement of greige fabric from third-party suppliers; or (ii) the procurement of yarn, which is subsequently converted into greige fabric through outsourced job-work arrangements undertaken in accordance with our technical specifications. Upon receipt of the greige fabric, all subsequent processing operations, including bleaching, dyeing and finishing, are carried out in-house at our manufacturing facility. Through these processes, we convert greige fabric into finished fabric of the requisite quality, specifications and end-use requirements.

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 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 June 30, 2025 and the Fiscals 2025, 2024 and 2023 is set out below:

(Z in million, unless stated otherwise)

Key Performance Indicators (KPIs)	Unit	Three Months Period ended June 30, 2025*	Fiscal 2025	Fiscal 2024	Fiscal 2023
FINANCIAL KPIs
Revenue from Operations^	t in million	1,042.35	3,159.52	1,209.79	939.12
EBITDA (2)	t in million	163.43	581.19	284.87	180.76
EBITDA Margin (3)	in %	15.68%	18.39%	23.55%	19.25%
Net Profit after tax (4)	t in million	47.98	185.63	130.95	25.09
Net Profit Margin (5)	in %	4.60%	5.88%	10.82%	2.67%
Return on Net Worth (6)	in %	6.62%	34.08%	40.46%	14.96%
Return on Capital Employed (7)	in %	3.79%	16.97%	16.18%	32.69%
Debt-Equity Ratio (8)	in times	2.81	2.96	3.72	1.75
OPERATIONAL KPIs
Sale of Services 9	in %	21.79%	30.12%	88.72%	97.47%
Sale of Goods (10)	in %	78.21%	69.88%	11.28%	2.53%
Days Working Capital (11)	in days	104	122	104	103
Inventory Days (12)	in days	165	115	127	129
Debtors Days (13)	in days	70	48	44	58
Creditors Days (14)	in days	96	57	54	50

*Not Annulaised

As certified by Statutory Auditors of our Company, pursuant to their certificate dated December 11, 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 period/fiscal and adding back finance costs and depreciation and amortization expenses.

(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 period/fiscal divided by revenue from operations.

(6) Return on Net Worth is calculated as Net Profit after tax as restatedfor the end of the period/fiscal divided by Average Net worth as at the end of the period/fiscal. Average net worth means the average of the net worth of current and previous period/fiscal. 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, total borrowings and deferred tax liabilities (net of deferred tax assets) of the current and previous period/fiscal.

(8) Debt-equity ratio is calculated by dividing total debt by total equity. Total debt represents long term and short-term borrowings. Total equity includes the aggregate value of the paid-up share capital and other equity.

(9) Sale of Services is calculated as revenue from sale of services as appearing in the Restated Financial Information, divided by the total revenue from operations.

(10) Sale of Goods is calculated as revenue from sale of goods as appearing in the Restated Financial Information, divided by the total revenue from operations.

(11) Days Working Capital is arrived at by dividing working capital (current assets excluding cash and cash equivalents and bank balances less current liabilities excluding short term borrowings) by revenue from operations multiplied by the number of days in the period/fiscal (91/365).

(12) Inventory Days =Number of days during the period/fiscal (91/365)/ (Cost of Goods Sold/average Inventory at the beginning and end of the Period/Fiscal).

(13) Debtor Days = Number of days during the period/fiscal (91/365)/ (Revenue from Operations/average Trade Receivables at the beginning and end of the Period/Fiscal).

(14) Creditor Days = Number of days during the period/fiscal (91/365)/ (Net Purchases /average Trade Payables at the beginning and end of the Period/Fiscal).

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 statements 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:

?€? Sionnah Enterprises Private Limited was incorporated as a wholly owned subsidiary of Sonaselection India Limited on July 01, 2025. Hence Consolidated Financial Statement is not required.

?€? The Company had issued 96,608 Compulsorily Convertible Debentures (CCDs) at a face value of Rs10 each at a premium of Rs725 per debenture, aggregating to Rs7L01Million on September 16, 2024. The CCDs were mandatorily convertible into Equity Shares at a ratio of 1:1 (one Equity share for each CCD held) within 18 months of issue. In accordance with terms of the issue, these CCDs were converted into Equity Shares on August 20, 2025. However, as the company had issued bonus shares during the year ended March 31, 2025 in the ratio of 1:4 (four bonus shares for every one share held), the company had allotted Equity shares to CCD holders in the ratio of

1:5 (one equity share and four bonus shares for each CCD held), resulting in the allotment of 4,83,040 Equity Shares of the Company. Consequent to the conversion, the CCD liability has been fully extinguished, and the corresponding amount has been transferred to Share Capital and Securities Premium Account.

Increase in Authorised Share Capital: The Company has increased its authorised share capital from Rs 220.00 Million (2,20,00,000 equity share of Rs 10 each) to Rs 600.00 Million (6,00,00,000 equity share of Rs 10 each) pursuant to a resolution passed at the Extraordinary General Meeting (EGM) of shareholders held on November 04, 2025.

Bonus Issue: Subsequent to the reporting date, pursuant to the approval of shareholders granted in the extra-ordinary General meeting held on November 04, 2025, the company issued and allotted fully paid up bonus share at par in proportion of 16 new equity share of Rs 10 each for every 10 existing fully paid up equity share of Rs 10 each held on the record date of November 07, 2025.

Subsequent to the reporting date but before the date of signing of the restated financial information, the list of promoters and their current shareholding is as follows:

Name of the Promoter	No of Shares	Shareholding (%)
Deepank Bhandari	20,085,000	47.23%
Sona Polyspin Private Limited	11,765,000	27.66%
Harshil Nuwal	8,449,935	19.87%
Uma Nuwal	13	0.00%
Subhash Chandra Nuwal	-	-

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS AND FINANCIAL CONDITION

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factors" on page 44. Our results of operations and financial conditions are affected by numerous factors including the following:

1 A major portion of our revenue from operations is dependent upon a limited number of customers, our revenue from our top ten customers is ^352.35 million, ^1,199.85 million, ^582.51 million and ^425.77 million constituting 33.80%, 37.98%, 48.15% and 45.34% of our overall revenue from operations for the Three Months Period ended June 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively. Loss of any of these customers or loss of revenue from any of these customers could have a material adverse effect on our business, financial condition, results of operations and cash flows.

2 We depend on a certain limited set of suppliers for the supply of primary raw materials. Our procurement of raw materials from our top ten suppliers is ^616.49 million, ^2,124.48 million, ^407.37 million and ^409.08 million constituting 68.92%, 80.74%, 77.52% and 74.33% of our overall procurement for the Three Months Period ended June 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively. Any loss of suppliers or interruptions in the timely delivery of supplies and services could have an adverse impact on our business, financial condition, cash flows and results of operations.

3 Our Manufacturing Facility and Registered Office are located in Rajasthan, and a significant portion of our revenue amounting to ^369.72 million, ^1,594.57 million, ^1,153.06 million and ^911.10 million constituting 35.47%, 50.47%, 95.31% and 97.02% of our total revenue from operations for the Three Months Period ended June 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively is also derived from this state. Further, our procurement from Rajasthan amounted to ^858.13 million, ^2587.97 million, ^505.83 million and ^457.88 million constituting 95.93%, 98.36%, 96.26% and 83.19% of purchases for the Three Months Period ended June 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023. As a result, we are exposed to geographic concentration risks that may adversely affect our operations, financial condition, and results of operations.

4 Any slowdown or shutdown of our manufacturing operations at our manufacturing facility could have an adverse effect on our business, financial condition and results of operations

5 We are subj ect to stringent quality requirements from our buyers. Any failure to meet prescribed quality specifications may result in product rejections, loss of customer confidence, and reputational damage, which could adversely affect our business and results of operations.

6 Under-utilisation of our manufacturing capacity and an inability to effectively utilize our manufacturing capacity could have an adverse effect on our business, future prospects and future financial performance.

7 There are outstanding litigations involving our Company, Promoters, Directors and SMP. An adverse outcome in any of these proceedings may affect our reputation and standing and impact our future business and could have a material adverse effect on our business, financial condition, cash flows and results of operations.

8 We have experienced negative cash flows in the past, and sustained or significant negative cash flows may adversely affect our business, financial condition and growth prospects.

9 Some of the members of our Promoter Group have not consented to the inclusion of, nor have they provided, information or any confirmations or undertakings pertaining to themselves or the entities in which they hold interest, which are required to be disclosed in relation to Promoter Group under the SEBI ICDR Regulations in this Draft Red Herring Prospectus. The disclosures relating to these members of the Promoter Group have been included in this Draft Red Herring Prospectus based on information available in public domain. Accordingly, we cannot assure you that the disclosures relating to such members of our Promoter Group are accurate, complete, or updated. Further, details in relation to Connected Entities which may qualify as a member of our Promoter Group have not been disclosed in this Draft Red Herring Prospectus.

10 We have significant working capital requirements and our inability to meet such working capital requirements may have an adverse effect on our results of operations.

BASIS OF PREPARATION, MEASUREMENT AND MATERIAL ACCOUNTING POLICIES

A. Corporate Overview

Sonaselection India Limited (the "Company"), incorporated on 11th February, 2022, is a Company domiciled in India and limited by shares (CIN: U17299RJ2022PLC079631). The address of the Companys Registered Office and Plant location situated at 18th K.M. Stone, Chittorgarh Road, Hamirgarh, Bhilwara, Rajasthan, India, 311025. The company is engaged in manufacturing and processing of all type of textile fabrics.

B. Basis of Preparation of Restated Financial Information

The Restated Financial Information comprises of:

Restated Statement of Assets and Liabilities of the Company as at 30th June, 2025, 31st March, 2025, 31st March, 2024 and 31st March 2023, the Restated Statement of Profit and Loss (including Other Comprehensive Income/Loss), Restated Statement of Changes in Equity and the Restated Statement of Cash Flows for the period ended 30th June, 2025 and year ended 31st March, 2025, 31st March, 2024 and 31st March 2023, and the summary of material accounting policies and explanatory notes (collectively the Restated Financial Information);

These Restated Financial Information have been prepared by the management as required under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended ("ICDR Regulations") issued by the Securities and Exchange Board of India (SEBI), in pursuance of the Securities and Exchange Board of India Act, 1992, for the purpose of inclusion in the Draft Red Herring Prospectus (DRHP) in connection with the proposed initial public offering of equity shares of face value of Rs. 10 each of the Company (the "Issue"), in terms of the requirements of:

1. Section 26 of Part I of Chapter III of the Companies Act, 2013 (the "Act");

2. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 as amended;

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

The Restated Financial Information have been extracted by the Management from:

The audited special purpose Ind AS financial statements of the company as at and for the Three Months Period ended June 30, 2025 and each of the years ended March 31, 2025, March 31, 2024 and March 31, 2023 (together hereinafter referred as the "Special Purpose Ind AS Financial Statements") each prepared in accordance with the Ind AS prescribed under section 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015, as amended, and other accounting principles generally accepted in India, which have been approved by the Board of Directors at their meeting held on November 27, 2025. The Special Purpose Ind AS Financial Statements for year ended March 31, 2025 and March 31, 2024 had been prepared by making adjustments required under Ind AS to the audited IGAAP financial statements of the Company as at and for each of the years ended March 31, 2025 and March 31 2024 (the "Statutory Indian GAAP Financial Statements") prepared in accordance with the Accounting Standards as prescribed under Section 133 of the Act read with Companies (Accounting Standards) Rules 2021, as amended, and other accounting principles generally accepted in India, which were approved by the Board of directors at their meeting held on May 19, 2025 and September 02, 2024, respectively.

C.

Basis of Measurement/Use of Estimates and judgements

(i) The Financial Statements are prepared on going concern basis under the historical cost convention and on accrual method of accounting, except for certain financial assets and liabilities, including derivative financial instruments which have been measured at fair value as described below and defined benefit plans which have been measured at actuarial valuation as required by relevant Ind ASs.

(ii) The statement of cash flows has been prepared under indirect method, whereby profit or loss 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 items of income or expense associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

(iii) The preparation of Financial Statements requires judgments, estimates and assumptions that affect the reported amount of Assets and Liabilities, disclosure of Contingent Liabilities on the date of the Financial Statements and the reported amount of Revenues and Expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialised.

D. Functional and Presentation Currency

These Financial Statements are presented in Indian Rupees (INR), which is the Companys functional currency. All financial information presented in INR has been rounded to the nearest million (up to two decimals), except as stated otherwise

E. Current and Non-Current classification

The Company presents Assets and Liabilities in the Balance Sheet based on Current/Non-Current classification.

An Asset is Current when it is:

?€? Expected to be realised or intended to be sold or consumed in normal operating cycle;

?€? Held primarily for the purpose of trading;

?€? Expected to be realised within twelve months after the reporting period; or

?€? Cash or Cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

A Liability is Current when:

?€? It is expected to be settled in normal operating cycle;

?€? It is held primarily for the purpose of trading;

?€? It is due to be settled within twelve months after the reporting period; or

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

Current assets/ liabilities include the current portion of non-current assets/ liabilities respectively. All other assets/ liabilities are classified as non-current. Deferred Tax Assets/Liabilities are classified as Non-Current.

F. Operating Cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. The Company considers its operating cycle to be within one year.

G. Material Accounting Policies

A summary of the material Accounting Policies applied in the preparation of the Financial Statements are as given below. These Accounting Policies have been applied consistently to all periods presented in the Financial Statements.

1. Property, Plant & Equipment

Definition

Property, plant and equipment are tangible items that:

(A) are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and

(B) are expected to be used during more than one period.

Initial Recognition and Measurement

An item of Property, Plant and Equipment is recognised as an Asset if and only if it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably.

Items of Property, Plant and Equipment are measured at Cost less Accumulated Depreciation and Accumulated impairment losses. Cost includes expenditure that is directly attributable to bringing the asset, inclusive of non-refundable taxes & duties, to the location and condition necessary for it to be capable of operating in the manner intended by management.

When parts of an item of property, plant and equipment have different useful lives, they are recognised separately.

Items of spare parts, stand-by equipment and servicing equipment which meet the definition of Property, Plant and Equipment are capitalised.

Subsequent Costs

Subsequent expenditure is recognised as an increase in the carrying amount of the asset when it is probable that future economic benefits deriving from the cost incurred will flow to the enterprise and the cost of the item can be measured reliably.

The cost of replacing part of an item of Property, Plant and Equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-to-day servicing of Property, Plant and Equipment are recognised in Statement of Profit or Loss as and when incurred.

Derecognition

Property, Plant and Equipment are derecognised when no future economic benefits are expected from their use or upon their disposal. Gains and Losses on disposal of an item of Property, Plant and Equipment are determined by comparing the proceeds from disposal with the carrying amount of Property, Plant and Equipment, and are recognised in the Statement of Profit and Loss.

Depreciation

Assets are depreciated using straight line method over the estimated useful life of the asset as specified in Part "C" of Schedule II of Companies Act, 2013 after retaining residual life of 5% of original cost. Assets residual values and useful lives are reviewed at each financial year end considering the physical condition of the assets.

Depreciation on additions to/deductions from Property, Plant & Equipment during the year is charged on pro-rata basis from/up to the date on which the asset is available for use/disposed.

Where it is probable that future economic benefits deriving from the cost incurred will flow to the enterprise and the cost of the item can be measured reliably, subsequent expenditure on a PPE along- with its unamortised depreciable amount is charged off prospectively over the revised useful life determined by technical assessment.

In circumstance, where a property is abandoned, the cumulative capitalised costs relating to the property are written off in the same period.

2. Capital Work-in-Progress

"The cost of self-constructed assets includes the cost of materials & direct labour, any other costs directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by management and borrowing costs.

Expenses directly attributable to construction of property, plant and equipment incurred till they are ready for their intended use are identified and allocated on a systematic basis on the cost of related assets.

3. Intangible Assets and Intangible Assets under Development

Initial recognition and measurement

An Intangible Asset is recognised if and only if it is probable that the expected future economic benefits that are attributable to the asset will flow to the company and the cost of the asset can be measured reliably.

Intangible assets that are acquired by the Company, which have finite useful lives, are recognised at cost. Subsequent measurement is done at cost less accumulated amortization and accumulated impairment losses. Cost includes any directly attributable incidental expenses necessary to make the assets ready for its intended use.

Expenditure on development activities is capitalised only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Company intends to and has sufficient resources to complete development and to use or sell the asset.

Expenditure incurred which are eligible for capitalizations under intangible assets are carried as intangible assets under development till they are ready for their intended use.

Subsequent Costs

Subsequent expenditure is recognised as an increase in the carrying amount of the asset when it is probable that future economic benefits deriving from the cost incurred will flow to the enterprise and the cost of the item can be measured reliably.

Derecognition

An Intangible Asset is derecognised when no future economic benefits are expected from their use or upon their disposal. Gains and Losses on disposal of an item of Intangible Assets are determined by comparing the proceeds from disposal with the carrying amount of Intangible Assets and are recognised in the Statement of Profit and Loss.

Amortization

Intangible Assets having definite life is amortised on straight line method in their useful lives. Useful life of Computer Software is estimated at five years.

4. Borrowing Cost

Borrowing costs that are directly attributable to the acquisition, construction, exploration, development or erection of qualifying assets are capitalised as part of cost of such asset until such time the assets are substantially ready for their intended use. Qualifying assets are assets which take a substantial period of time to get ready for their intended use or sale. Capitalization of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying assets for their intended uses are complete. Borrowing costs consist of:

(a) interest expense calculated using the effective interest method as described in Ind AS 109 - Financial Instruments,

(b) finance charges in respect of finance leases recognised in accordance with Ind AS 116 - Leases

(c) exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs and,

(d) other costs that an entity incurs in connection with the borrowing of funds. Income earned on temporary investment of the borrowings pending their expenditure on the qualifying assets is deducted from the borrowing costs eligible for capitalization.

All other borrowing costs are charged to revenue as and when incurred.

5. Inventories

Finished Goods are valued at the lower of cost and net realisable value. Cost includes cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location andcondition. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

Raw materials, components, stores and spares and work-in progress are valued at cost. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.

Inventories being stock-in-trade are valued at the lower of cost and net realisable value. Inventories being stock-in-trade are valued at the lower of cost and net realisable value. Spare parts other than those capitalised as Property, Plant and Equipment are carried as inventory.

The diminution in the value of obsolete, unserviceable and surplus stores & spares is ascertained on review and provided for.

7. Cash and Cash Equivalent

Cash and cash equivalent in the Balance Sheet comprises Cash at Banks, Cash on Hand and ShortTerm Deposits with an original maturity of three month or less, which are subject to insignificant risk of change in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash at banks, cash in hand, and short-term deposits, as defined above.

8. Government Grants

Government grants are recognised where there is a reasonable assurance that the grant will be received and the Company will comply with all attached conditions. When the government grant relates to an asset, the asset is disclosed by deducting that grant in arriving at the carrying amount of that asset. Government grants that compensate the Company for expenses incurred are recognised in the statement of profit and loss, as income or deduction from the relevant expense, on a systematic basis in the periods in which the expense is recognised.

9. Provisions, Contingent Liabilities and Contingent Assets Provisions

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and 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.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement

will be received and the amount of the receivable can be measured reliably. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

Contingent Liabilities

Contingent Liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events not wholly within the control of the Company. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a Contingent Liability, unless the probability of outflow of economic benefits is remote. Contingent Liabilities are disclosed on the basis of judgment of the management/independent experts. These are reviewed at each balance sheet date and are adjusted to reflect the current management estimate.

Contingent Assets

Contingent Assets are possible assets that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Contingent Assets are disclosed in the financial statements when inflow of economic benefits is probable on the basis of judgment of management. These are assessed continually to ensure that developments are appropriately reflected in the financial statements.

10. Foreign Currency Transactions and Translation

Transactions in foreign currencies are initially recorded at the functional currency rates at the date the transaction first qualifies for recognition. Monetary Assets and Liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognised in Statement of Profit and Loss in the year in which it arises.

11. Revenue Recognition

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration the company is entitled in exchange for those goods or services.

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (Net of variable consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of discounts, rebates, credits, price incentives or similar terms.

A. Sale of goods

Generally, control is transferred upon shipment of goods to the customer or when the goods is made available to the customer, provided transfer of title to the customer occurs and the Company has not retained any significant risks of ownership or future obligations with respect to the goods shipped. Consideration is generally due upon satisfaction of performance obligations and a receivable is recognised when it becomes unconditional.

In case of discounts, rebates, credits, price incentives or similar terms, consideration are determined based on its most likely amount, which is assessed at each reporting period.

B. Rendering of services

Revenue from rendering of services is recognised over time by measuring the progress towards complete satisfaction of performance obligations at the reporting period.

Revenue is measured at the amount of consideration which the company expects to be entitled to in exchange for transferring distinct goods or services to a customer as specified in the contract, excluding amounts collected on behalf of third parties (for example taxes and duties collected on behalf of the government). Consideration is generally due upon satisfaction of performance obligations and a receivable is recognised when it becomes unconditional.

In case of discounts, rebates, credits, price incentives or similar terms, consideration are determined based on its most likely amount, which is assessed at each reporting period.

C. Other operational revenue

Other operational revenue represents income earned from the activities incidental to the business and is recognised when the right to receive the income is established as per the terms of the contract.

12. Other Income

Interest income is accrued on a time basis by reference to the principal outstanding and the effective interest rate.

Dividend income is accounted in the period in which the right to receive the same is established.

Other items of income are accounted as and when the right to receive such income arises and it is probable that the economic benefits will flow to the company and the amount of income can be measured reliably

12. Employee Benefits

i. DEFINED BENEFIT OBLIGATIONS

(a) Post-employment benefits (Gratuity):

The liability recognised in balance sheet in respect of gratuity (unfunded) is the present value of defined benefit obligation at the end of reporting period less fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using projected unit credit method.

Remeasurement actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement if changes in equity and in the balance sheet.

(b) Other employee benefits:

The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as present value of expected future payments to be made in respect of services provided by employees up to the end of reporting period using the projected unit credit method.

ii. DEFINED CONTRIBUTION PLAN:

Company pays contributions to provident fund, employee pension scheme and employee state insurance as per statutes/ amounts as advised by the Authorities. The Company has no further obligations once the contributions have been paid. The contributions are accounted for as defined contribution plan and the contributions are recognised as employee benefit expense when they are due.

iii. SHORT-TERM BENEFITS:

Liabilities for salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of reporting period in which the employees rendered the related services are recognised in respect of employees service up to the end of reporting period and are measured at the amount expected to be paid when the liabilities are settled. These liabilities are presented as current employee benefit obligations in the balance sheet.

13. Income Taxes

Income Tax Expense comprises Current and Deferred Tax. Current Tax Expense is recognised in Statement of Profit and Loss A/c except to the extent that it relates to items recognised directly in other comprehensive income or equity, in which it is recognised in OCI or Equity.

CURRENT TAX

Current Tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted and as applicable at the reporting date, and any adjustment to tax payable in respect of previous years. Current Income Taxes are recognised under Income Tax payable net of payments on account, or under Tax receivables where there is a debit balance.

DEFERRED TAX

Deferred Tax is recognised using the Balance Sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred Tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred Tax Assets and Liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle Current Tax Liabilities and Assets on a net basis or their tax assets and liabilities will be realised simultaneously.

Deferred Tax is recognised in Statement of Profit and Loss except to the extent that it relates to items recognised directly in OCI or Equity, in which case it is recognised in OCI or Equity.

A Deferred Tax Asset is recognised to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

14. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity

Financial Assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus or minus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition or issue of the financial asset.

Subsequent measurement

Subsequent measurement of financial assets is described below - Financial Assets (Debt instruments) at amortised cost

A debt instrument is measured at the amortised cost if both the following conditions are met:

- The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

- 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 statement of profit and loss. The losses arising from impairment are recognised in the statement of profit and loss. This category generally applies to trade and other receivables.

Debt instrument at FVTOCI

A debt instrument is classified as at the FVTOCI if both of the following criteria are met:

- The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

- The assets contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognised in the other comprehensive income (OCI).

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorised as at amortised cost or as FVTOCI, is classified as at FVTPL.

De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Companys balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- 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 passthrough arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Impairment of Financial Assets

In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the financial assets and credit risk exposure.

For recognition of impairment loss on financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, the credit quality of the instrument improves then the entity reverts to recognising impairment loss allowance based on 12- month ECL.

In respect of Trade receivables or any financial asset that result from transactions that are within the scope of Ind AS 115, company follows simplified approach for recognition of impairment loss

allowance within the scope of Ind AS 115, if they do not contain a significant financing component. It recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

Financial Liabilities

Initial recognition and measurement

All Financial Liabilities are recognised at fair value and in case of loans, net of directly attributable transaction cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

Subsequent Measurement

Financial Liabilities are carried at amortised cost using the effective interest method. Amortised cost is calculated by taking into account any discount or premium on acquisition and any material transaction that are any integral part of the EIR. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate the fair value of the instrument.

Derecognition

A Financial Liability is derecognised when the obligation under the liability is discharged or cancelled or expired. 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.

Derivative Financial Instrument

The Company uses forwards to mitigate the risk of changes in interest rates, exchange rates and commodity prices. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are also subsequently measured at fair value on the reporting date. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken to cash flow hedge reserve through Statement of Other Comprehensive Income.

These are accounted for as follows:

a) Cash flow hedge

When derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognised in the cash flow hedging reserve being part of other comprehensive income. Any ineffective portion of changes in the fair value of the derivative is recognised immediately in the Statement of Profit and Loss. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss previously recognised in the cash flow hedging reserve is transferred to the Statement of Profit and Loss upon the occurrence of the underlying transaction. If the forecasted transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified in the Statement of Profit and Loss.

b) Fair Value Hedge

Changes in the fair value of hedging instruments and hedged items that are designated and qualify as fair value hedges are recorded in the Statement of Profit and Loss. If the hedging relationship no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is amortised to Statement of Profit and Loss over the period of maturity.

15. CSR Expenditure

The Company undertakes Corporate Social Responsibility (CSR) activities as per Section 135 of the Companies Act, 2013 and the Companies (CSR Policy) Rules, 2014. CSR expenditure includes amounts incurred on activities that are approved as ongoing projects by the Board in line with the CSR policy and applicable law.

CSR expenditure is recognised in the Statement of Profit and Loss in the period in which it is incurred. For ongoing projects, any unspent amount at the end of the financial year is transferred to a separate "Unspent CSR Account" with a scheduled bank within 30 days from the end of the financial year, in accordance with Section 135(6) of the Act. Such amounts are spent within the timelines prescribed under Rule 4(6) of the CSR Rules.

The Company does not capitalize any CSR expenditure unless it results in the creation of an asset controlled by a qualifying entity as specified under Rule 7(4) of the CSR Rules.

16. Segment reporting

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Companys other components, and for which discrete financial information is available. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (CODM).

The Companys Board has identified the CODM who is responsible for financial decision making and assessing performance. The Company has a single operating segment as the operating results of the Company are reviewed on an overall basis by the CODM.

17. Lease

The Company, as a lessee, recognises a right-of-use asset and a lease liability for its leasing arrangements, if the contract conveys the right to control the use of an identified asset. The determination of whether an agreement is, or contains, a lease is based on the substance of the agreement at the date of inception.

The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset and the Company has substantially all of the economic benefits from use of the asset and has right to direct the use of the identified asset.

Initial Measurement

Lease Liability: At the commencement date, a Company measure the lease liability at the present value of the lease payments that are not paid at that date. The lease payments shall be discounted using incremental borrowing rate. Right-of-use assets: initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives.

Subsequent Measurement

Lease Liability: Company measure the lease liability by (a) increasing the carrying amount to reflect interest on the lease liability; (b) reducing the carrying amount to reflect the lease payments made; and

(c) remeasuring the carrying amount to reflect any reassessment or lease modifications. Right-of-use assets: subsequently measured at cost less accumulated depreciation and impairment losses. Right-of- 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 under lying asset.

Impairment

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 asset belongs.

Short Term Lease Or Low Value Lease

Short term lease is that, at the commencement date, has a lease term of 12 months or less. A lease that contains a purchase option is not a short-term lease.

Low value lease is for which the underlying asset is of low value. If the company elected to apply short term lease/Low Value Lease, the lessee shall recognise the lease payments associated with those leases as an expense on either a straight-line basis over the lease term or another systematic basis. The lessee shall apply another systematic basis if that basis is more representative of the pattern of the lessees benefit.

18. Earnings per share

Basic earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the financial year.

Diluted earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares

19. Prior Period Items

Errors of material amounts relating to prior period(s) are disclosed by a note with nature of prior period errors, amount of correction of each such prior period presented retrospectively in the statement of profit and loss and balance sheet, to the extent practicable along with change in basic and diluted earnings per share. However, where retrospective restatement is not practicable for a particular period then the circumstances that lead to the existence of that condition and the description of how and from where the error is corrected are disclosed in Notes on Accounts.

20. Dividend Distribution

Dividend Distribution / Annual dividend distribution to the shareholders is recognised as a liability in the period in which the dividends are approved by the shareholders. Any interim dividend paid is recognised on approval by Board of Directors. Dividend payable and corresponding tax on dividend distribution is recognised directly in equity.

21. Events after reporting period

Material adjusting events (that provides evidence of condition that existed at the balance sheet date) occurring after the balance sheet date are recognised in the financial statements. Non-adjusting events (that are indicative of conditions that arose subsequent to the balance sheet date) occurring after the balance sheet date that represent material change and commitment affecting the financial position are disclosed in the reports of the board of directors.

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:

Total 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 Services and (ii) Sale of Products Other Income

Other income includes (i) Interest Income on Fixed deposit with Bank; (ii) Interest Income on Security deposit with AVVNL; (iii) Store spares & chemical Sale; and (iv) Other income.

Expenses

Our expenses comprise of: (i) cost of material 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 amortised expenses; and (vii) other expenses.

Cost of Material Consumed

Cost of Material Consumed denote the sum of inventory at the beginning of fiscal, purchases of raw materials, less inventory at the end of the fiscal.

Purchase of Stock-in-Trade

Purchase of Stock-in-Trade denote the purchases made during the fiscal.

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 inventory at the beginning of the fiscal and inventory at the end of the fiscal.

Employee Benefits Expense

Employee benefits expenses include (i) salaries and wages (including bonus); (ii) leave encashment and gratuity; (iii) contributions to provident and other funds, and (v) staff welfare expenses.

Finance Costs

Finance cost includes (i) interest on term loans; (ii) interest on working capital loans; (iii) interest on vehicle loans; (iv) interest on unsecured loan; (v) interest on others, (vi) interest subsidy, and (vii) Bank processing charges.

Depreciation and Amortization expenses

Depreciation and amortization expenses include (i) Depreciation on tangible assets, and (ii) amortization of intangible assets.

Other Expenses

Other expenses includes:

(A) Operating and Manufacturing Overheads which further includes (i) Consumption of stores and spare parts; (ii) Consumption of packing material; (iii) Power Expenses; (iv) Effluent Treatment & Water Expenses; (v) Repairs and maintenance - Buildings; (vi) Repairs and maintenance - Machinery; (vii) Job Processing charges & Job Weaving & Sizing Charges;

(B) Establishment Expenses which further includes (viii) Bank Charges; (ix) Advertisement Expenses; (x) Membership & Subscription Fees; (xi) Festival & Pooja Expenses; (xii) Share Issued Expenses; (xiii) Repair - Others; (xiv) Donation Expenses; (xv) Director Remuneration;

(xvi) Insurance Charges; (xvii) Legal & Professional Expenses; (xviii) Office Expenses; (xix) Payment to Auditors; (xx) Printing & Stationary Expenses; (xxi) Rent Expenses; (xxii) Rate & Taxes Expenses; (xxiii) Telephone & Internet charges; (xxiv) Sundry Balance Written off; (xxv) Independent Director Sitting fees; (xxvi) Postage & Courier Expenses; (xxvii) CSR expenses; (xxviii) Loss on Sale of Fixed Assets; (xxix) Travelling & conveyance Expenses;

(C) Selling and Distribution Expenses which further includes (xxx) Freight and forwarding (xxxi)

Cash discount and (xxxii) Agency commission.

Our Results of Operations

The following table sets forth selective financial data from our restated statement of profit & loss for the three month ended June 30, 2025 and for the fiscals 2025, 2024 and 2023, the components of which are also expressed as a percentage of revenue from operations for such fiscals:

	Three Months Period ended June 30, 2025*		Fiscal 2025		Fiscal 2024		Fiscal 2023
Particulars	Amount	As a % of revenue from operations	Amount	As a % of revenue from operations	Amount	As a % of revenue from operations	Amount	As a % of revenue from operations
Income:
Revenue from Operations	1,042.35	100.00%	3,159.52	100.00%	1,209.79	100.00%	939.12	100.00%
Other Income	1.54	0.15%	5.14	0.16%	3.31	0.27%	1.99	0.21%
Total Income	1,043.89	100.15%	3,164.66	100.16%	1,213.10	100.27%	941.11	100.21%
Expenses:
Cost of Material Consumed	648.86	62.25%	2,177.82	68.93%	529.43	43.76%	461.47	49.14%
Purchase of Stock-in-Trade	59.53	5.71%	14.60	0.46%	5.36	0.44%	27.21	2.90%
Changes in Inventories in Finished Goods, Work-in-Progress and Stock-in-Trade	(96.22)	(9.23)%	(345.46)	(10.93)%	(52.03)	(4.30)%	(76.16)	(8.11)%
Employee Benefits Expense	106.88	10.25%	356.30	11.28%	203.45	16.82%	144.16	15.35%
Finance Costs	43.96	4.22%	147.25	4.66%	47.45	3.92%	24.44	2.60%
Depreciation and Amortization Expenses	51.94	4.98%	173.14	5.48%	67.97	5.62%	35.90	3.82%
Other Expenses	161.41	15.49%	380.21	12.03%	242.02	20.01%	203.67	21.69%
Total Expenses	976.36	93.67%	2,903.86	91.91%	1,043.65	86.27%	820.69	87.39%
Profit before tax	67.53	6.48%	260.80	8.25%	169.45	14.01%	120.42	12.82%
Less: Tax Expense
Current Tax	11.80	1.13%	45.74	1.45%	29.90	2.47%	32.20	3.43%
Less : MAT Credit Entitlement	7.90	0.76%	(24.85)	(0.79)%	(1.43)	(0.12)%	-	0.00%
Deferred Tax	(0.15)	(0.01)%	54.28	1.72%	10.03	0.83%	63.13	6.72%
Total Tax Expense	19.55	1.88%	75.17	2.38%	38.50	3.18%	95.33	10.15%
Profit / (Loss) from the period	47.98	4.60%	185.63	5.88%	130.95	10.82%	25.09	2.67%

Results of Operations for the Three Months Period ended June 30, 2025:

Total Income

Our total income amounted to Rs 1,043.89 million for the Three Months Period ended June 30, 2025, which was on account of revenue from operations and other income as described below:

Revenue from operations

Our revenue from operations was Rs 1,042.35 million during the Three Months Period ended June 30, 2025. This mainly comprises sale of services and sale of products amounting to Rs 227.17 million and Rs 815.18 million respectively.

Other income

Our other income amounted to Rs 1.54 million during the Three Months Period ended June 30, 2025. Expenses

Our total expenses, excluding tax amounted to Rs 976.36 million for the Three Months Period ended June 30, 2025 representing 93.67 % of our revenue from operations.

Cost of material consumed

Our cost of material consumed was Rs 648.86 million representing 62.25 % of revenue from operations for the Three Months Period ended June 30, 2025.

Purchase of stock-in-trade

Our purchase of stock-in-trade was Rs 59.53 million representing 5.71 % of our revenue from operations for the Three Months Period ended June 30, 2025.

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 was Rs (96.22) million, representing (9.23) % of our revenue from operations for the Three Months Period ended June 30, 2025.

Employee benefit expenses

Our employee benefit expenses were Rs 106.88 million representing 10.25 % of our revenue from operations for the Three Months Period ended June 30, 2025.

Finance costs

Our finance costs were Rs 43.96 million representing 4.22 % of our revenue from operations for the Three Months Period ended June 30, 2025.

Depreciation and amortization

Our depreciation and amortization expenses was Rs 51.94 million representing 4.98 % of the revenue from operations for the Three Months Period ended June 30, 2025.

Other expenses

Our other expenses were Rs 161.41 million representing 15.49 % of our revenue from operations for the Three Months Period ended June 30, 2025.

Profit before tax

Our profit before tax was Rs 67.53 million representing 6.48 % of our revenue from operations for the Three Months Period ended June 30, 2025.

Tax expenses

Our tax expense was Rs 19.55 million representing 1.88 % of our revenue from operations for the Three Months Period ended June 30, 2025. It was on account of current tax of Rs 11.80 million, MAT credit utilised of Rs 7.90 million and deferred tax of Rs (0.15) million.

Profit after tax

Due to the above-mentioned reasons, our profit after tax was Rs 47.98 million representing 4.60 % of our revenue from operations for the Three Months Period ended June 30, 2025.

RESULTS OF OPERATIONS INFORMATION FOR THE FISCAL 2025 COMPARED WITH FISCAL 2024

(^ in million, unless stated otherwise)

Particulars	Fiscal 2025	Fiscal 2024	Change in Rs Million	Change in %
Income:
Revenue from Operations	3,159.52	1,209.79	1,949.73	161.16%
Other Income	5.14	3.31	1.83	55.29%
Total Income	3,164.66	1,213.10	1,951.56	160.87%
Expenses
Cost of Materials Consumed	2,177.82	529.43	1,648.39	311.35%
Purchases of Stock-in-Trade	14.60	5.36	9.24	172.39%
Changes in Inventories of Finished Goods, Work-in-Progress and Stock- in-Trade	(345.46)	(52.03)	(293.43)	(564.02)%
Employee Benefits Expense	356.30	203.45	152.85	75.13%
Finance Costs	147.25	47.45	99.80	210.33%
Depreciation and Amortization Expenses	173.14	67.97	105.17	154.73%
Other Expenses	380.21	242.02	138.19	57.10%
Total Expenses	2,903.86	1,043.65	1,860.21	178.24%

Particulars	Fiscal 2025	Fiscal 2024	Change in Rs Million	Change in %
Profit Before Tax	260.80	169.45	91.35	53.91%
Less: Tax Expense
Current Tax	45.74	29.90	15.84	52.98%
Less : MAT Credit Entitlement	(24.85)	(1.43)	(23.42)	(1637.76)%
Deferred Tax	54.28	10.03	44.25	441.18%
Total Tax Expense	75.17	38.50	36.67	95.25%
Profit for the Year	185.63	130.95	54.68	41.76%

Total Income

Our total income has increased by 160.87% from ^1,213.10 million in fiscal 2024 to ^3,164.66 million in fiscal 2025 due to increase in revenue from operations and other income by 161.16% and 55.29% respectively.

Revenue from Operations

Our revenue from operations has increased by 161.16% from ^1,209.79 million in fiscal 2024 to ^3,159.52 million in fiscal 2025. The increase is reflected by increase in sale of products by ^2,071.37 million which is partly set off by a decrease in sale of services by ^121.64 million. The changes can be attributed to the following reasons:

?€? Bangladesh has long been a formidable player in the global textile market, primarily due to its competitive labour costs and preferential trade agreements. However, recent political unrest and economic challenges have disrupted its garment sector, creating a significant opportunity for India to capitalize on the shifting dynamics. (Source: CareEdge Report). Leveraging these emerging prospects, the company expanded its manufacturing capabilities in fabric processing by commissioning an additional 2.37 million meters per month of capacity in July 2024.

?€? As a result, the revenue from fabric sales increased from ^136.50 million in Fiscal 2024 to ^2,207.87 million in Fiscal 2025 indicating an increase of ^2,071.37 million.

?€? Moreover, the company earned revenue from 13 states during the Fiscal 2025 as compared to 7 states during Fiscal 2024 which is reflected by an increase in selling and distribution expenses from ^21.41 million in Fiscal 2024 to ^54.53 million in Fiscal 2025, driven by enhanced sales and distribution activities

Other Income

Our other income was Rs5.14 million in Fiscal 2025 as compared to Rs3.31 million in Fiscal 2024, indicating an increase of 55.29%. Such increase is primarily on account of increase in (i) interest income on fixed deposit with bank by Rs 1.50 million, (ii) interest income on security deposit with AVVNL by Rs 0.27 million, and (iii) store spares & chemical sale by Rs 0.07 million; during Fiscal 2025.