Vinod Texworld Ltd Management Discussions

You should read the following discussion of our financial condition and results of operations together with our Financial Statements as Restated which is included in this Draft Prospectus. The following discussion and analysis of our financial condition and results of operations is based on our Financial Statements as Restated, for the years ended March 31, 2025, 2024 and 2023 including the related notes and reports, included in this Draft Prospectus is prepared in accordance with requirements of the Companies Act, 2013 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 derived from our audited statutory financial statements. Accordingly, the degree to which our Financial Statements as Restated will provide meaningful information to a prospective investor in countries other than India is entirely dependent on the readers level of familiarity with Indian GAAP, 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 our financial performance and involves numerous risks and uncertainties, including, but not limited to, those described in the section entitled "Risk Factors" on page 35 of this Draft Prospectus. Actual results could differ materially from those contained in any forward-looking statements and for further details regarding forward-looking statements, kindly refer the chapter titled "Forward-Looking Statements" on page 22 of this Draft Prospectus. Unless otherwise stated, the financial information of our Company used in this section has been derived from the Restated Financial Information.

Our financial year ends on March 31 of each year. Accordingly, unless otherwise stated, all references to a particular financial year are to the 12-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to Vinod Texworld Limited, our Company. Unless otherwise indicated, financial information included herein are based on our Restated Financial Statements for Financial Years 2025, 2024 & 2023 included in this Draft Prospectus beginning on page 267 of this Draft Prospectus.

BUSINESS OVERVIEW

Our Company was originally incorporated as "Shree Shiv Shakti Cot-Fab Private Limited" as a private limited company, under the provisions of the Companies Act, 1956 vide Certificate of Incorporation dated July 19, 2012 issued by Registrar of Companies, Gujarat, Dadra and Nagar Havelli having Corporate Identification Number U17200GJ2012PTC071210. Subsequently in the Financial Year 2016-17, Vinod Mangalchand Mittal, Harsh Vinod Mittal and Yash Vinod Mittal acquired 100% shareholding in the Shree Shiv Shakti Cot-Fab Private Limited. Subsequently, Our Company changed its name from "Shree Shiv Shakti Cot-Fab Private Limited" to "Vinod Fabtex Private Limited" vide Certificate of Incorporation pursuant to change of name March 08, 2018 issued by Registrar of Companies, Ahmedabad, pursuant to special resolution passed in the Extra Ordinary General Meeting of the company held on March 03, 2018. Subsequently, Our Company changed its name from "Vinod Fabtex Private Limited" to "Vinod Texworld Private Limited" vide Certificate of Incorporation pursuant to change of name May 25, 2018 issued by Registrar of Companies, Ahmedabad, pursuant to special resolution passed in the Extra Ordinary General Meeting of the company held on May 23, 2018. Subsequently, our Company was converted from a private limited company to public limited company pursuant to special resolution passed in the Extra Ordinary General Meeting of the company held on November 05, 2024 and consequently the name of our Company was changed to "Vinod Texworld Limited" pursuant to fresh certificate of incorporation dated December 18, 2024 issued to our Company by the Registrar of Companies, Central Processing Centre having Corporate Identification Number U17200GJ2012PLC071210.

We make fabrics for fast fashion by combining modern technology, creative design, and traditional skills. We manage the entire process—from Greige Fabric to Dyed fabric and Printed fabric ensuring quality and the ability to quickly adapt to evolving market demands. Our key focus areas include fostering innovation, adopting a customer-centric approach, and driving research and development along with technological advancements. We are also committed to facilitating the transition towards renewable energy while prioritizing sustainability and green energy practices across our operations.

The companys focus is on Innovation, Customer Orientation, R & D, Technology Up Gradation, Continuous Improvement and Moving towards Green Energy. Our Company manufacture and sells its products like Dyed Fabric and Printed Fabric.

With a domestic network, the Company serves various locations across India, including states such as Gujrat, Punjab, Haryana, Delhi, Rajasthan, Uttar Pradesh, and West Bengal, among others.

We continuously strive to improve our processes, integrate new technologies and advance our sustainability efforts. As part of our commitment to the environment, we are transitioning toward Green Energy to reduce our carbon footprint and increase energy efficiency across our operations.

We supply our Dyed Fabric and Printed Fabric based on precise specifications of our customers across India and also in the overseas market. During the Fiscal 2025, we exported our products to Nepal. Set out in the table below is a break-up of our revenue from domestic sales and export sales for the Fiscal 2025, Fiscal 2024 and Fiscal 2023.

For further details of our company please refer to section titled "Our History and Certain Other Corporate Matters " and "Our Business " beginning on page no. 224 and 177 respectively of this Draft Prospectus.

KEY PERFORMANCE INDICATORS OF OUR COMPANY

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 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.

The following table sets forth certain of our key performance indicators for the periods indicated below.

Amount (Rs. in Lakhs except percentages and ratios.

Key Financial Performance	March 31, 2025	March 31, 2024	March 31, 2023
Revenue from operations (1)	33,536.93	27,148.80	20,066.90
EBITDA (2)	2,099.00	1,229.09	480.24
EBITDA Margin (3)	6.26%	4.53%	2.39%
PAT (4)	920.76	529.68	67.65
PAT Margin (5)	2.75%	1.95%	0.34%
Net Worth (6)	3,198.00	2,277.24	1,647.56
Return on Net Worth (7)	28.79%	23.26%	4.11%
RoCE (8)	34.99%	22.53%	6.12%

Notes:

(1) Revenue from operations means the Revenue from operations as appearing in the Restated Financial Statement.

(2) EBITDA is calculated as Profit before tax + Depreciation + Interest Expenses - Other Income

(3) EBITDA Margin is calculated as EBITDA divided by Revenue from Operations

(4) PAT is mentioned as profit after tax for the period.

(5) PAT Margin is calculated as PATfor the period/year divided by revenue from operations.

(6) Net Worth means the aggregate value of the paid-up share capital and reserves and surplus (including, Securities Premium, General Reserve and surplus in statement ofprofit and loss). of the company.

(7) ROE/RONW: Return on Equity is calculated as PAT divided by closing shareholders fund.

(8) ROCE: Return on Capital Employed is calculated as EBIT divided by capital employed, which is defined as shareholders equity plus Long Term-borrowings.

For further detail on Key Performance Indicators of our company, please refer Chapter Titled "Basis of Offer Price" on page 136 of this Draft Prospectus.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL YEAR

As per mutual discussion between the Board of the Company and Lead Manager, in the opinion of the Board of the Company there have not arisen any circumstances since the date of the last financial statements as disclosed in the Draft Prospectus and which materially and adversely affect or is likely to affect within the Previous twelve months except as follows:

• Ms. Neha Agarwal ceased to hold office as an Additional Independent Director of the Company with effect from May 22, 2025.

• The Board of Directors of the Company appointed Mr. Gitesh Bipinchandra Shah as an Additional Independent Director in its meeting held on May 22, 2025.

• Ms. Sweta Yash Mittals designation was changed from Executive Director to Non-Executive Director pursuant to a resolution passed by the Board of Directors in its meeting held on May 22, 2025.

• The Board of Directors of our Company has approved and passed resolution on August 05, 2025 to authorize the Board of Directors to raise the funds by way of Initial Public Offering.

• The shareholder of our Company has approved and passed resolution on August 28, 2025 to authorize the Board of Directors to raise the funds by way of Initial Public Offering.

• Increase in Authorised Share Capital: The Company has increased its authorised share capital from INR 1,200.00 Lakhs (1,20,00,000 equity share of INR 10 each) to INR 1,700.00 Lakhs (1,70,00,000 equity share of INR 10 each) pursuant to a resolution passed at the Extraordinary General Meeting (EGM) of shareholders held on August 28, 2025.

• Mr. Gitesh Bipinchandra Shah ceased to hold office as an Additional Independent Director of the Company with effect from September 10, 2025.

• The Board of Directors of the Company appointed Ms. Nikita as an Additional Independent Director in its meeting held on September 10, 2025.

• The Company has approved the Restated Financial Statements for the financial year ending March 31 2025, March 31, 2024 and March 31, 2023 in the Board meeting dated September 15, 2025.

• Our Company has approved the Draft Prospectus vide resolution in the Board Meeting dated September 29, 2025.

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "RiskFactor " beginning on page 35 of this Draft Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

• Our ability to successfully implement our growth strategy and expansion plans;

• Our Companys inability to meet its working capital requirements or maintain its existing credit facilities

• General economic and business conditions in the markets in which we operate and in the local, regional, national and international economies;

• Our ability to meet our capital expenditure requirements;

• Fluctuations in operating costs;

• Failure to successfully upgrade our product portfolio, from time to time;

• Our ability to attract and retain qualified personnel;

• Our inability to maintain quality standards;

• Changes in government policies and regulatory actions that apply to or affect our business;

• Our inability to respond to new innovations in our industry;

• Any adverse outcome in the legal proceedings in which we and our promoters are involved;

• Conflict of Interest with affiliated companies, the promoter group and other related parties;

• General social and political conditions in India which have an impact on our business activities or investments;

• Adverse natural calamities and man-made disaster having significant impact on our business;

• Other Factors beyond our control;

• Developments affecting the Indian economy;

• Loss of consumers;

DISCUSSION ON RESULT OF OPERATION

The following discussion on results of operations should be read in conjunction with the Restated Financial Statements for the financial years ended on March 31, 2025, March 31, 2024 March 31, 2023

Amount (Rs in Lakhs unless stated otherwise)

Particulars	For the year ended 31 March, 2025	%age of Total Income	For the year ended 31 March, 2024	%age of Total Income	For the year ended 31 March, 2023	%age of Total Income
Income
Revenue from Operations	33,536.93	99.94%	27,148.80	99.94%	20,066.90	99.97%
Other Income	19.11	0.06%	16.59	0.06%	6.33	0.03%
Total Income (I + II)	33556.04	100%	27165.38	100%	20073.23	100%
Expenditure
Cost of Material Consumed	28,904.56	86.14%	24,471.36	90.08%	16,945.39	84.42%
Purchases of Stock in Trade	183.95	0.55%	127.51	0.47%	118.10	0.59%
Changes in inventories	(764.20)	(2.28)%	(1,580.79)	(5.82)%	(486.77)	(2.42)%
Employee benefits expenses	395.45	1.18%	318.72	1.17%	258.26	1.29%
Financial Charges (Finance cost)	526.62	1.57%	262.44	0.97%	130.59	0.65%
Depreciation & Amortization Expenses	387.58	1.16%	293.84	1.08%	268.09	1.34%
Other expenses	2,684.78	8.00%	2,564.01	9.44%	2,746.84	13.68%
Total expenses	32318.74	96.31%	26457.09	97.39%	19980.50	99.54%
Profit before Taxation & Exceptional Item	1237.30	3.69%	708.29	2.61%	92.73	0.46%
Exceptional Items	-	-	-	-	-	-
Profit Before Taxation	1237.30	3.69%	708.29	2.61%	92.73	0.46%
Current Tax	327.39	0.98%	165.62	0.61%	14.08	0.07%
Deferred Tax	(10.85)	(0.03)%	13.00	0.05%	11.00	0.05%
Earlier Years Tax Expense	-	-	-	-	-	-
Total tax expense	316.54	0.94%	178.62	0.66%	25.09	0.12%
Profit After Tax but Before Extra-ordinary Items	920.76	2.74%	529.68	1.95%	67.65	0.34%
Extraordinary Items	-	-	-	-	-	-
Net Profit after adjustments	-	-	-	-	-	-
Net Profit Transferred to Balance Sheet	920.76	2.74%	529.68	1.95%	67.65	0.34%

Our Significant Accounting Policies

For Significant accounting policies please refer Significant Accounting Policies, under Chapter titled "Financial Statements" beginning on page 267 of this Draft Prospectus.

Reservations, Qualifications and Adverse Remarks

The Examination Report issued by our Statutory Auditors has no reservations, qualifications and adverse remarks.

Revenue Recognition Method adopted by the company

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Turnover includes sale of goods net of all the taxes.

Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

Sale of Goods: Revenue from the sale of goods is recognized when the goods are delivered and the titles have passed, at which time all the following conditions are satisfied:

• The company has transferred to the buyer the significant risks and rewards of the ownership of the goods;

• The company retains neither continuing managerial involvement to degree usually associated with ownership nor effective control over the goods sold;

• The amount of revenue can be measured reliably;

• It is probable that the economic benefits associated with the transaction will flow to the company; and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Interest Income: Interest income is accrued on a time basis, by reference to the principle outstanding and at the effective interest rate applicable.

Government Grant: Government Grant means assistance by government in cash or kind for past or future compliance of certain conditions but does not include grants which cannot be reasonably measured or transactions with government which cannot be distinguished from normal trading transactions of an enterprise. Grant received as an interest subsidy being a revenue grant is deducted from the interest expenses in Profit &

Loss Statement. These grants are recognized only where a certainty exists for the fulfilment of conditions and ultimate.

Overview of Revenue & Expenditure

The following discussion on results of operations should be read in conjunction with the Restated Financial statements for the Financial Year 2025, 2024 & 2023. Our revenue and expenses are reported in the following manner:

Revenue Bifurcation Product wise bifurcation

Product wise bifurcation is mentioned under chapter titled ‘our business on page 177 of this Draft Prospectus under the head ‘Product wise revenue breakup.

Geographical bifurcation

Geographical bifurcation is mentioned under chapter titled ‘our business on page 177 of this Draft Prospectus under the head ‘Geographical wise revenue breakup.

Revenues

? Total Income:

Our total income comprises of revenue from operations and other income.

? Revenue of operations

Our Companys revenue is primarily generated from the sale of printed fabric and Dyed Fabric.

? Other Income

Other Income includes interest income, profit on sale of machinery, rent income and other miscellaneous income.

Expenditure

Our total expenditure primarily consists of purchase of stock in trade, cost of material consumed, Change in inventories, Employee benefit expenses, other expenses. We also have incurred financial charges and depreciation as expenditure.

? Cost of Material Consumed

Represents the cost of raw materials and components used in production. It includes purchases such as greige fabric, which undergoes washing, processing, and other treatments to be converted into the finished product.

? Purchase of Stock in Trade

Represents the cost of finished goods purchased for resale without further processing. Such purchases are made to meet excess or urgent customer orders, manage temporary production shortfalls, or take advantage of market opportunities.

? Change in Inventory

It means the difference between total of opening and closing inventories. This includes finished goods of inventory and work in progress.

? Employment Benefit Expenses

Our employee benefits expense primarily comprises of Salaries and Wages, Staff welfare expenses and Gratuity and Other Benefits etc.

? Finance Cost

It includes Interest Expense on Bank Borrowings, interest on reverse factoring cost and other interest cost.

? Depreciation and Amortization Expenses

Depreciation includes depreciation on Buildings, Plant & Equipment, Furniture & Fixtures, Computers, etc.

? Other Expenses

Other Expenses includes manufacturing expenses such as purchase of coal and fuel, freight cartage, job work expenses etc. It also includes administrative expenses such as brokerage and commission, legal and professional charges, repair and maintenance etc.

? Tax Expenses

Income taxes are accounted for in accordance with Accounting Standard - 22 on "Accounting for Taxes on Income" ("AS-22"), prescribed under the Companies (Accounting Standards) Rules, 2006. Our Company provides for current tax as well as deferred tax, as applicable.

Provision for current taxes is made at the current tax rates after taking into consideration the benefits available to our Company under the provisions of the Income Tax Act, 1961.

Deferred tax arises from the timing differences between book profits and taxable profits that originate in one period and are capable of reversal in one or more subsequent periods and is measured using the tax rates and laws applicable as of the date of the financial statements. Our Company provides for deferred tax asset / liability on such timing differences subject to prudent considerations in respect of deferred tax assets.

DETAILS OF FINANCIAL YEAR ENDING MARCH 31, 2025 COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2024 (BASED ON RESTATED FINANCIAL STATEMENTS)

Amount (Rs in Lakhs unless stated otherwise)

Particulars	For the year ended 31 March, 2025	For the year ended 31 March, 2024	Change in Rs Lakhs	Change in %
Income
Revenue from Operations	33,536.93	27,148.80	6,388.13	23.53%
Other Income	19.11	16.59	2.52	15.19%
Total Income (I + II)	33556.04	27165.38	6,390.66	23.53%
Expenditure
Cost of Material Consumed	28,904.56	24,471.36	4,433.20	18.12%
Purchases of Stock in Trade	183.95	127.51	56.44	44.26%
Changes in inventories	-764.2	-1,580.80	816.60	51.66%
Employee benefits expenses	395.45	318.72	76.73	24.07%
Financial Charges (Finance cost)	526.62	262.44	264.18	100.66%
Depreciation & Amortization Expenses	387.58	293.84	93.74	31.90%
Other expenses	2,684.78	2,564.01	120.77	4.71%
Total expenses	32318.74	26457.09	5,861.65	22.16%
Profit before Taxation & Exceptional Item	1237.3	708.29	529.01	74.69%
Exceptional Items	-	-	-	-
Profit Before Taxation	1237.3	708.29	529.01	74.69%
Current Tax	327.39	165.62	161.77	97.68%
Deferred Tax	-10.85	13	-23.85	-183.46%
Earlier Years Tax Expense	-	-	-	-
Total tax expense	316.54	178.62	137.92	77.21%
Profit After Tax but Before Extraordinary Items	920.76	529.68	391.08	73.83%
Extraordinary Items	-	-	-	-
Net Profit after adjustments	-	-	-	-
Net Profit Transferred to Balance Sheet	920.76	529.68	391.08	73.83%

Revenues ? Total Income

Total Income for the Financial Year 2024-25, stood at Rs. 33,556.04 Lakhs whereas in Financial Year 2023-24 it stood at Rs. 27,165.39 Lakhs representing an increase of 23.53%, due to the factors described below:

1. Revenue from operations

Total revenue from operations for FY 2024-25 stood at Rs. 33,536.93 lakhs, compared to Rs. 27,148.80 lakhs in FY 2023-24, registering a growth of 23.53%. The increase was primarily driven by higher manufacturing capacity, which rose from 190 lakh meters per annum in FY 2023-24 to 225 lakh meters per annum after new machinery costing Rs812.58 lakhs, commissioned mid-FY 2023-24, operated for the full FY 2024-25.

Reduced Reliance on Job Work: Job-work sales declined sharply from Rs510.30 lakhs in FY 2023-24 to Rs23.41 lakhs in FY 2024-25. This reflects reduced reliance on job work revenue leading to higher revenue in direct sale model, enabling it to focus on manufacturing and selling its own products. The increased emphasis on direct production contributed significantly to the growth in revenue from operations.

2. Other Income

Other Income for the Financial Year 2024-25 stood at Rs. 19.11 Lakhs whereas in Financial Year 202324 it stood at Rs. 16.59 Lakhs, representing an increase of 15.19%, Such increase was due to increase in interest income from Rs. 9.86 lakhs in FY 2023-24 to Rs. 10.07 lakhs in FY 2024-25. Profit on sale of machinery also increased from Rs. 2.27 lakhs to Rs. 3.02 lakhs during the FY 2024-25 and as balance written off increased from Rs. 1.28 lakhs in FY 2023-24 to Rs. 3.73 lakhs in FY 2024-25.

Expenditure ? Total Expenses

Total Expenses for the for the Financial Year 2024-25, stood at Rs. 32,318.74 Lakh whereas in Financial Year 2023-24 it stood at Rs. 26,457.09 Lakh, which representing increase of 22.16%. This can be contributed to many factors as discussed below:

1. Cost of Material Consumed

The total cost of material consumed for the financial year 2024-25 was Rs28,904.56 lakhs, compared with Rs24,471.36 lakhs in 2023-24, showing an increase of 18.12%. This rise primarily reflects higher purchases of raw materials required to meet the growth in production and sales during the year. The Company enhanced its installed manufacturing capacity and improved capacity utilization from 85.57% in FY 202324 to 88.18% in FY 2024-25. As a result, additional quantities of key inputs, including greige fabric and other essential materials, were procured to support the increased production volume. Additionally, Job- work activities for external parties declined significantly during the year as the Company focused on fulfilling its own growing orders. As a result, purchase of raw material is higher in FY 2024-25 as compared to FY 2023-24.

2. Purchase of Stock in Trade

Purchase of Stock in Trade for the Financial Year 2024-25 stood at Rs. 183.95 lakh whereas in Financial Year 2023-24 it stood at Rs. 127.51 Lakh representing an increase of 44.26% of the purchases stock in trade of FY 2024-25. The increase of Rs. 56.44 lakhs in Purchase of Stock in Trade is directly aligned with the growth in our Direct Trade Business. This increase is due to Purchase of stock in trade as % to revenue from operations stood at 0.55% in FY 2025 and 0.47% in FY 2024. The company at times carries out trading activity on the basis of demand from customer. It consists of very nominal percentage as compared to total sales of the company.

3. Change in Inventories

Total change in inventory for the Financial Year 2024-25, stood at Rs. (764.20) lakhs whereas in financial year 2023-24 it stood at Rs. (1,580.79) lakhs, representing an increase of 51.66%. As sales of the company increased due to higher installed capacity in FY 2024-25, it processed more raw material, thus, further reducing the gap between the opening and closing inventory leading to lower change in inventory. Company maintains its inventory on the order to order basis.

4. Employment Benefit Expenses

Employee benefit expenses for the Financial Year 2024-25 stood at Rs. 395.45 Lakhs. Whereas for the Financial Year 2023-24, it stood at Rs. 318.72 Lakhs representing an Increase of 24.07%, this increase is primarily attributable to the appointment of additional employees during the year, as well as an overall rise in remuneration, bonus, and gratuity expenses. Company had 102 employees at the end FY 2024-25 as compared to 90 employees at the end of FY 2023-24. These factors collectively contributed to the higher employee benefit costs in FY 2024-25.

5. Other Expenses

The Other Expenses for the Financial Year 2024-25 stood at Rs 2,684.78 Lakhs. Whereas for the Financial Year 2023-24, it stood at Rs. 2,564.01 Lakhs representing an increase of 4.71%. This was due to increase

in direct expenses such as freight, cartage, packing expenses, jobwork expenses, leading to overall increase from Rs. 1245.04 lakhs in FY 2023-24 to Rs. 1,381.22 lakhs, thus, increasing 10.94% of direct expenses, constituting overall increase in other expenses.

6. Depreciation and Amortization Expenses

The Depreciation and Amortization Expenses for the Financial Year 2024-25 stood at Rs.387.58 Lakhs, compared to Rs.293.84 Lakhs in the Financial Year 2023-24, representing an increase of 30.90%. This rise was primarily due to the addition of fixed assets during the year, including the purchase of the Drying Range Machine (Phase-IV) amounting to Rs.50.64 Lakhs, Electrification Installation (Phase-IV) amounting to Rs.16.34 Lakhs, and a jigger phase IV amounting to Rs. 119.13 Lakhs. These capital investments contributed to the overall increase in depreciation and amortization expenses for the year.

7. Finance Cost

Finance cost for the Financial Year 2024-25 stood at Rs.526.62 Lakhs, whereas in the Financial Year 2023-24, it stood at Rs.262.44 Lakhs, representing an increase of 100.66%. This sharp rise was mainly due to higher interest on additional short-term borrowings of Rs2,126.17 lakhs during the year. The sanctioned cash-credit limit was enhanced from Rs2,500 lakhs to Rs4,500 lakhs, enabling the company to draw more working-capital loans to meet daily business requirements, which in turn led to higher interest expenses. Consequently, finance charges rose significantly.

8. Restated Profit before Tax

The restated profit before tax For the Financial Year 2024-25 stood at Rs. 1,237.30 Lakhs. Whereas for the Financial Year 2023-24, it stood at Rs. 708.30 Lakhs, representing an increase of 74.69%. As new boilers was installed in middle of FY 2023-24, it significantly reduced power and fuel cost from 3.74% of revenue from operations in FY 2023-24 to 2.84% of revenue from operations in FY 2024-25.

9. Restated Profit after Tax

The restated profit after tax For the Financial Year 2024-25 stood at Rs. 920.76 Lakhs. Whereas for the Financial Year 2022-23, it stood at 529.68 Lakhs, representing an increase of 73.83% in line with profit before tax.

Conclusion for increase in PAT margin:

Amount (Rs in Lakhs unless stated otherwise)

Particulars	FY 2024-25	FY 2023-24
Revenue from Operations (A)	33,536.93	27,148.80
Profit After Tax (B)	920.76	529.68
Profit Margin	2.75%	1.95%
Power and Fuel Expenses (C)	951.03	1,041.35
Adjusted Profit (B + C) = (D)	1,871.79	1571.03
Adjusted Profit Margin (D)/(A)	5.58%	5.79%

These ratios suggest that, due to significant decrease in power and fuel expenses, company has increased its profit margin.

FISCAL YEAR ENDED MARCH 31, 2024 COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2023 (BASED ON RESTATED FINANCIAL STATEMENTS)

Amount (Rs in Lakhs unless stated otherwise)

Particulars	For the year ended 31 March, 2024	For the year ended 31 March, 2023	Change in Lakhs	Change in %
Income
Revenue from Operations	27,148.80	20,066.90	7081.9	35.29%
Other Income	16.59	6.33	10.26	162.09%
Total Income (I + II)	27165.38	20073.23	7092.15	35.33%
Expenditure
Cost of Material Consumed	24,471.36	16,945.39	7525.97	44.41%
Purchases of Stock in Trade	127.51	118.1	9.41	7.97%
Changes in inventories	-1,580.79	-486.77	-1094.02	-224.75%
Employee benefits expenses	318.72	258.26	60.46	23.41%
Financial Charges (Finance cost)	262.44	130.59	131.85	100.96%
Depreciation & Amortization Expenses	293.84	268.09	25.75	9.60%
Other expenses	2,564.01	2,746.84	-184.35	-6.66%
Total expenses	26457.09	19980.5	6476.59	32.41%
Profit before Taxation & Exceptional Item	708.29	92.73	615.56	663.82%
Exceptional Items	-	-
Profit Before Taxation	708.29	92.73	615.56	663.82%
Current Tax	165.62	14.08	151.54	1076.28%
Deferred Tax	13.00	11.00	2	18.18%
Earlier Years Tax Expense	-	-
Total tax expense	178.62	25.09	153.53	611.92%
Profit After Tax but Before Extraordinary Items	529.68	67.65	462.03	682.97%
Extraordinary Items	-	-
Net Profit after adjustments	-	-
Net Profit Transferred to Balance Sheet	529.68	67.65	462.03	682.97%

Revenues ? Total Income

Total Income for the Financial Year 2023-24 stood at Rs. 27,165.39 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 20,073.23 Lakhs, representing Increase of 35.33%. The Increase is due to Production Capacity increased from 100 lakh meters in FY 2022-23 to 190 lakh meters in FY 2023-24, due to installation and commencement of some new machines like Rotary printing, Jigger Dyeing etc. (operation for about 6 months). Also, job work reduced from 1717.35 lakh to Rs. 510.30 lakh resulting into own sales increased during the year and due to the factors described below.

1. Revenue from operations

Revenue from Operations for the Financial Year 2023-24 stood at Rs.27,148.80 Lakhs, whereas for the Financial Year 2022-23, it stood at Rs.20,066.90 Lakhs, representing an increase of 35.29%. This growth was primarily driven by an increase in production during the Financial Year 2023-24 to 162.58 lakh meters from 84.09 lakh meters in the Financial Year 2022-23 indicating growth of 93.34% in production. This led to increase in product sales both domestically and internationally as company was able to fulfill more orders. It can be noted that there was reduction in Job Work Sales and Wash Liquor Sales during the year with increase in production as company was able to sell its own production during the year. This has eventually resulted in increase in net profit during the year due to increase in sales instead of job work.

Reduced Reliance on Job Work: In FY 2022-23, the Company generated Rs1,717.35 lakhs from job work. With higher customer orders in FY 2023-24, the Company expanded its installed capacity and reduced reliance on job work, which declined to Rs510 lakhs. This strategic shift toward fulfilling its own orders through direct production contributed to a significant increase in revenue from operations, reflecting the Companys move direct sales model.

2. Other Income

Other income for the Financial Year 2023-24 stood at Rs.16.59 Lakhs, compared to Rs.6.33 Lakhs in the Financial Year 2022-23, representing an increase of 162.09%. This increase was primarily due to higher interest income from Rs. 1.15 lakhs in FY 2022-23 to Rs.9.86 lakhs in FY 2023-24. Also, there was profit on sale of machinery to the extent of Rs. 2.27 lakhs during the year.

Expenditure

? Total Expenses

Total Expenses for the Financial Year 2023-24 stood at Rs. 26,457.09 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 19,980.50 Lakhs representing an Increase of 32.41% due to factors mentioned below:

1. Cost of Material Consumed

Cost of Material Consumed for the Financial Year 2023-24 stood at Rs. 24,471.36 Lakh whereas in Financial Year 2022-23 it stood at Rs. 16,945.39 Lakh representing an Increase of 44.41% of the cost of material consumed due to shift from Job work material to purchasing materials from vendors.

> Change in Material Sourcing: In FY 2022-23, the Company undertook job work primarily to utilise its idle production capacity. With an increase in customer orders in FY 2023-24, the Company expanded its installed capacity and reduced dependence on job work. Consequently, it procured more raw materials directly from vendors, leading to higher direct material purchases and an increase in the cost of materials consumed.

> Shift from Job Work: The earlier job work model required minimal raw material procurement. As the Company focused on fulfilling its own growing orders in FY 2023-24 and lowered job work activities, direct raw material purchases rose significantly, resulting in a higher overall material consumption expense.

Thus, the increase in the Cost of Materials is primarily attributed to the strategic shift from Job Work to direct material sourcing, which inherently carries higher input costs but aligns with the Companys evolving operational model.

2. Purchase of Stock in Trade

Purchase of stock-in-trade for FY 2023-24 stood at Rs127.51 lakhs, compared to Rs118.10 lakhs in FY 202223, reflecting a 7.97% increase. As a proportion of revenue from operations, it was 0.47% in FY 2023-24 versus 0.59% in FY 2022-23. The company occasionally undertakes trading activities to meet specific customer demand, and these purchases continue to represent only a nominal percentage of total sales.

3. Change in Inventory

The total change in inventory for FY 2023-24 was Rs(1,580.79) lakhs, compared to Rs(486.77) lakhs in FY 2022-23. Closing stock stood at Rs1,684.52 lakhs in FY 2023-24 versus Rs1,197.75 lakhs in FY 2022-23. With increased business operations and higher capacity utilisation, the company produced 162.58 lakh meters and sold 157.23 lakh meters in FY 2023-24, resulting in a larger inventory balance at year-end.

4. Employment Benefit Expenses

Employee benefit expenses for FY 2023-24 stood at Rs318.72 lakhs, up from Rs258.26 lakhs in FY 202223, reflecting an increase of 23.41%. This rise was primarily driven by a higher headcount, with 90 employees at the end of FY 2023-24 compared to 78 employees in FY 2022-23, resulting in increased costs for salaries and wages, provident fund contributions, bonus payments, and staff welfare activities.

5. Other Expenses

The Other Expenses for the Financial Year 2023-24 stood at Rs.2,564.01 Lakhs, compared to Rs.2,746.84 Lakhs in the previous year, reflecting a decrease of 6.66%. This overall reduction was the result of a balanced shift across various cost components. This was significantly due to reduction in consumption of power and fuel expenses from Rs. 1,402.36 lakhs in FY 2022-23 to Rs. 1014.35 lakhs in FY 2023-24. As average price of coal in FY 2022-23 was Rs. 9.94 per kg which had reduced to Rs. 4.42 per kg in FY 202324. The company has commenced generation of power through its solar power plant as well during the year. Hence, despite increase in production, power and fuel expenses were decreased.

6. Depreciation and Amortization Expenses

The Depreciation and Amortization Expenses for the Financial Year 2023-24 stood at Rs. 293.84 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 268.09 Lakhs which is calculated for the period and values, as per the utilization of assets for the Companys business. With increase in Property, plant and equipment during the FY 2024, amount of depreciation expense has increase from Rs. 268.09 lakhs in FY 2023 to Rs. 293.84 lakhs in FY 2024.

7. Finance Cost

The finance costs for the Financial Year 2023-24 stood at Rs. 262.44 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 130.59 Lakhs representing an increase of 100.97%. This significant rise was primarily due to an increase in interest charges on additional short-term borrowings of Rs. 1,189.93 Lakhs during the year. This Increase in borrowings has directly contributed to the increase in Finance Charges

8. Restated Profit before Tax

The restated profit before tax For the Financial Year 2023-24 stood at Rs. 708.31 Lakhs. Whereas for the Financial Year 2022-23, it stood at 92.73 Lakhs which signifies 2.61% and 0.46% from revenue from operations respectively. The significant improvement was primarily driven by lower coal costs, which resulted in reduced fuel expenses for the Company. Additionally, as the scale of operations expanded, the Company was able to leverage its fixed cost base, thereby achieving higher operating margins.

9. Restated Profit after Tax

The restated profit after tax For the Financial Year 2023-24 stood at Rs. 529.68 Lakhs. Whereas for the Financial Year 2022-23, it stood at 67.65 Lakhs. Representing an increase of 682.97% in line with the increase in profit before tax.

Reasons for increase in PAT margins

Amount in Lakhs unless stated otherwise)

Particulars	FY 2023-24	FY 2022-23
Revenue from operations	27,148.80	20,066.90
PAT	529.68	67.65
PAT Margin	1.95%	0.34%
Coal and Fuel Expenses	1,012.87	1,396.34
Adjusted PAT	1542.55	1463.99
Adjusted PAT Margin	5.68%	7.30%

> Power and Fuel: The Companys power and fuel costs were significantly impacted by the change in coal prices during the year. The cost of coal decreased from Rs9.94 per kg in FY 2022-23 to Rs4.42 per kg in FY 2023-24. This decline in input cost led to a substantial reduction in the total power and fuel expenditure for FY 2023-24. As a result, the Company benefited from improved operational efficiency and higher profitability. Additionally, the lower fuel cost supported a reduction in the cost of production per unit, enhancing the overall contribution margin from operations.

> Effluent Treatment Charges: The Company purchased its effluent treatment plant in the middle of FY 2022-23. Prior to this, it relied on external service providers to treat effluents and convert them into by-products, which resulted in effluent treatment charges of Rs49.31 lakhs in FY 2022-23. After commissioning its in-house plant, these charges were reduced to nil, contributing to an improvement in operational efficiency. The reliance on external treatment in the earlier period led to a lower PAT margin in FY 2022-23.

Conclusion: The PAT margin in FY 2022-23 was lower at 0.34% compared to 1.95% in FY 2023-24 primarily due to higher operational costs. In that year, the Company relied on external service providers for effluent treatment, resulting in charges of Rs49.31 lakhs, and faced higher coal prices of Rs9.94 per kg, which increased power and fuel expenses to Rs1,396.34 lakhs. These higher input costs, combined with limited scale of production, constrained profitability and led to a lower PAT margin in FY 202223.

Relevant Balance Sheet Items

Amount(Rs. in Lakhs)

Particulars	FY 2024-25	FY 2023-24	FY 2022-23
Long-Term Borrowings	1,747.63	1,946.95	1,923.76
Short-Term Borrowings	4,880.13	2,753.96	1,564.03
Trade Payables	7038.33	7260.17	5608.84
Trade Receivables	8,736.77	7,648.96	6,533.00
Inventories	6,032.76	4,556.36	2,193.37

Long-Term Borrowings

Long-term borrowings stood at Rs1,747.63 Lakhs as on March 31, 2025, compared to Rs1,946.95 Lakhs in FY 2023-24 and Rs1,923.76 Lakhs in FY 2022-23. The reduction reflects scheduled term-loan repayments and the Companys strategy to limit fresh long-term debt, even while commissioning new machinery (e.g., Drying Range Machine, Jigger Phase IV) that expanded installed capacity to 225 lakh meters per annum.

Short-Term Borrowings

Short-term borrowings increased sharply to Rs4,880.13 Lakhs from Rs2,753.96 Lakhs in FY 2023-24 (Rs1,564.03 Lakhs in FY2022-23). This rise is primarily due to higher working-capital requirements to support larger production volumes and higher sales. The Companys sanctioned cash-credit limit was raised from Rs2,500 lakhs to Rs4,500 lakhs, and utilization of these facilities contributed to higher finance costs, which doubled to Rs526.62 lakhs in FY 2024-25.

Trade Payables

Trade payables were Rs7,038.33 Lakhs, slightly below Rs7,260.17 Lakhs in FY 2023-24 (Rs5,608.84 Lakhs in FY 2022-23).This stable level shows consistent supplier credit terms despite higher procurement of raw materials. Material creditors include Vinod Cotfab Pvt. Ltd. (Rs3,962.83 Lakhs). Also, Trade payables as a percentage of total purchases* declined from about 32.9% in FY 2022-23 to 29.5% in FY 2023-24, and further to 24.2% in FY 2024-25, indicating faster payments or tighter supplier-credit cycles even as procurement volumes increased.

*purchases include cost of material sold plus purchase of stock in trade.

Trade Receivables

Trade receivables increased to Rs8,736.77 lakhs in FY 2024-25 from Rs7,648.96 lakhs in FY 2023-24 and Rs6,533.00 lakhs in FY 2022-23, broadly in line with the 23.5 % growth in revenue from operations to Rs33,536.93 Lakhs in FY 2024-25. Receivable days remained within normal limits, demonstrating healthy collection practices despite higher domestic and export sales. As a proportion of revenue from operations, trade receivables improved to 26.0 % in FY 2024-25 from 28.2 % in FY 2023-24 and 32.6 % in FY 2022-23, reflecting stronger collection efficiency and tighter credit management that support higher sales while maintaining robust cash flows.

Inventories

Inventories increased to Rs6,032.76 Lakhs from Rs4,556.36 Lakhs in FY 2023-24 (Rs2,193.37 Lakhs in FY 202223).

This was driven by higher capacity utilisation (88.18% vs. 85.57% in FY 2023-24) and production of 162.58 lakh metres vs. sales of 157.23 lakh metres, ensuring adequate finished-goods stock to meet rising demand. On a cost-of-goods-sold basis (cost of material consumed plus purchase of stock-in-trade adjusted for change in inventories), closing inventory represented about 21.3 % of COGS in FY 2024-25, compared with 19.8 % in FY 2023-24 and 13.2 % in FY 2022-23.

Conclusion

The balance-sheet movements for FY 2024-25 show a business operating at a larger scale while maintaining prudent financial management. Long-term borrowings continued to decline with scheduled repayments, while short-term borrowings rose to meet higher working-capital needs from increased production and sales. Trade payables remained stable in absolute terms but decreased as a percentage of total purchases, indicating quicker payments or tighter supplier credit cycles. Trade receivables grew in line with revenue but improved as a share of operations, reflecting stronger collection efficiency. Inventories increased to support higher output, with closing stock representing 21.3 % of cost of goods sold. Overall, the companys financing and working-capital profile remains balanced despite the higher operational scale.

Property Plant and Equipment

Amount (Rs in Lakhs unless stated otherwise)

Particulars	FY 2024-25	FY 2023-24	FY 2022-23
Gross Block- Opening Balance	4,190.12	3,349.87	3,090.39
Addition/(sale) during the year	293.50	869.18	347.27
Deductions and Other Adjustments	(250.22)	(28.93)	(87.79)
Gross Block- Closing Balance	4,233.40	4,190.12	3,349.87
Accumulated Depreciation- opening balance	1,668.03	1,374.19	1,106.10
Depreciation during the year	387.58	293.84	268.09
Deletion during the year	(218.41)	-	-
Accumulated Depreciation- Closing balance	1,837.20	1,668.03	1,374.19
Total Net block of Tangible assets	2,396.2	2,522.09	1,975.68

Cash Flows

The table below summarize our cash flows from our Restated Financial Information for the financial year ended on March 2025, 2024 and 2023.

Amount (Rs in Lakhs unless stated otherwise)

Particulars	FY 2024-25	FY 2023-24	FY 202223
Net cash (used in)/ generated from operating activities	(1,184.93)	(668.25)	(586.24)
Net cash (used in)/ generated from investing activities	(208.19)	(585.77)	(593.62)
Net cash (used in)/ generated from financing activities	1,400.23	1,050.68	1,380.12
Net increase/(decrease) in cash and cash equivalents	7.12	(203.35)	200.25
Cash and Cash Equivalents at the beginning of the Year	13.93	217.28	17.03
Cash and Cash Equivalents at the end of the Year	21.05	13.93	217.28

Net cash from/(used in) Operating Activities

For fiscal year ending March 31, 2025, net cash flow from operating activities was Rs. (1,184.93) lakhs as compared to Profit Before Tax of Rs. 1,237.30 lakhs. We had operating profit before working capital changes of Rs. 2,153.88 lakhs primarily as a result of depreciation, finance cost, Rent income and sale of Asset of Rs. 387.58 lakhs, Rs. 526.62 lakhs and Rs. 2.30 Lakhs Rs. 4.69 lakhs respectively.

For fiscal year ending March 31, 2024, net cash flow from operating activities was at Rs. (668.25) lakhs as compared to Profit Before Tax of Rs. 708.31 lakhs. We had operating profit before working capital changes of Rs. 1,269.30 lakhs primarily as a result of depreciation, finance cost, Rent income and sale of Asset of Rs. 293.84 lakhs, 262.44 Lakhs, 3.18 Lakhs and Rs. 7.89 lakhs respectively.

For fiscal year ending March 31, 2023, net cash flow from operating activities was Rs. (586.24) lakhs as compared to Profit Before Tax of Rs. 92.73 lakhs. We had operating profit before working capital changes of Rs. 503.58 lakhs primarily as a result of depreciation, finance cost, Rent paid and sale of Asset of Rs. 268.09 lakhs, 130.59 lakhs, 3.18 lakhs and Rs. 15.34 lakhs respectively.

Net cash from/(used in) Investing Activities

For Period ending March 31, 2025, the net cash flow from investing activities was Rs. (208.19) Lakhs due to purchase of fixed assets, Proceeds from Sale of Fixed Assets, Rent Income and purchase of Investments of Rs.

236.89 lakhs, Rs. 27.13 lakhs, Rs. 2.30 Lakhs and 0.73 Lakhs respectively.

For fiscal year ending March 31, 2024, net cashflow from investing activities was Rs. (585.77) lakhs due to purchase of fixed assets, Proceeds from Sale of Fixed Assets and Rent Income of Rs. 591.23 lakhs, Rs. 2.27 lakhs and Rs. 3.18 Lakhs respectively.

For fiscal year ending March 31, 2023, the net cash flow from investing activities was Rs. (593.62) Lakhs due to purchase of fixed assets, Proceeds from Sale of Fixed Assets, Rent Income and purchase of Investments of Rs. 621.90 lakhs, Rs. 25.52 lakhs, Rs. 3.18 Lakhs and 0.42 Lakhs respectively.

Net cash Flow from/(used in) Financing Activities

For the period ended March 31, 2025, net cash flow from financing activities was Rs. 1,400.23 lakhs due to repayment of secured/unsecured long-term loans, change in secured/unsecured Short-Term Borrowing and finance cost of Rs. 199.32 Lakhs, Rs. 2,126.17 Lakhs and Rs. 526.62 Lakhs respectively.

For the fiscal year ending March 31, 2024, net cash flow from financing activities was Rs. 1,050.68 lakhs due to proceeds from issue of equity share, proceeds from secured/unsecured long-term loans, change in secured/unsecured Short-Term Borrowing and finance cost of Rs. 100.00 Lakhs, Rs. 23.19 Lakhs, Rs. 1,189.93 Lakhs and Rs. 262.44 Lakhs respectively.

For fiscal year ending March 31, 2023, net cash flow from financing activities was Rs. 1,380.12 lakhs due to proceeds from issue of equity share, proceeds from secured/unsecured long-term loans, change in secured/unsecured Short-Term Borrowing and finance cost of Rs. 200.00 Lakhs, Rs. 99.48 Lakhs, Rs. 1,211.23 Lakhs and Rs. 130.59 Lakhs respectively.

Financial Indebtedness

Please see "Financial Indebtedness" for a description of broad terms of our indebtedness on page 337 of this Draft Prospectus. The company has an impeccable record of servicing its debts and has consistently reduced its dependence on institutional finance, there are negligible chances of any default. In the event our lenders declare an event of default, such current and any future defaults could lead to acceleration of our obligations, termination of one or more of our financing agreements or force us to sell our assets, which may adversely affect our business, results of operations and financial condition.

Off-balance Sheet Commitments and Arrangements

We do not have any off-balance sheet arrangements, derivative instruments, swap transactions or relationships with affiliates or other unconsolidated entities or financial partnerships that would have been established for the purpose of facilitating off-balance sheet arrangements except contingent liabilities as of March 31, 2025 which is mentioned below:

Amount (Rs in Lakhs unless stated otherwise)

Particulars	Rs. in Lakhs
I. GST Demand	22.86
II. Bank Guarantee includes Performance Guarantee and advance Receipt Bank Guarantee	77.64
III. Corporate Guarantee to Private Limited Company	7,627.00
TOTAL	7727.50

Note: The aggregate contingent liability of the Company as on March 31, 2025, is 2.42 times of its net worth. If invoked, such guarantees could materially and adversely affect the Companys liquidity, financial condition, cash flows, and overall operations. For further details, kindly refer to Risk Factor no. 68 on page no.35 of this

Draft Prospectus.

Outstanding Dues to Trade Payables

For purposes of the disclosure in Issue Document pursuant to the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 as amended, the Board of Directors of the Company has identified a materiality threshold of in excess 5% of total trade payables of the Company as per the Restated Financial Statements of the company for the year ended March 31, 2025, pursuant to a resolution dated September 15, 2025; and the amounts owed as of March 31, 2025 by the Company to any small scale undertaking and any other creditor equal to or exceeding such materiality threshold is identified in summary form as brought out in the tables below.

Creditors other than MSME of amount more than threshold limit*

Name of Material Creditor	Amount (Rs. Lakhs)
Vinod Cotfab Private Limited	3,962.83
Creditor 1	831.51
Flaxen Textiles Private Limited	697.83
Citadel Textiles Private Limited	322.88
Total	5,815.05

Creditors (MSME) of amount more than threshold limit*

Name of Material Creditor	Amount (Rs. Lakhs)
MSME Creditor 1	203.17
MSME Creditor 2	97.00
MSME Creditor 3	77.07
MSME Creditor 4	76.52
MSME Creditor 5	68.28
MSME Creditor 6	54.81
MSME Creditor 7	49.57
Total	626.42

*Materiality is determined at 5% of trade payables, calculated separately for outstanding dues to creditors and to MSMEs and other creditor.

(Amount in Lakhs)

Particulars	FY 2025	FY 2024	FY 2023
Trade Payables	7038.33	7,260.17	5,608.84
- MSME	888.79	1,424.99	1,150.80
- Others	6,149.53	5,835.18	4,458.04

INFORMATION REQUIRED AS PER ITEM (II) (C) (iv) OF PART A OF SCHEDULE VI TO THE SEBI REGULATIONS:

1. Unusual or infrequent events or transactions

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

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

Other than as described in the section titled Risk Factors beginning on page 35 of this Draft Prospectus, to our knowledge there are no known significant economic changes that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.

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

Other than as described in this Draft Prospectus, particularly in the sections Risk Factors and Management ‘s Discussion and Analysis of Financial Condition and Results of Operations on pages 35 and 314, respectively, to our knowledge, there are no known trends or uncertainties that are expected to have a material adverse impact on our revenues or income from continuing operations

4. Future changes in relationship between costs and revenues, in case of events such as future increase in labor or material costs or prices that will cause a material change are known.

Our Companys future costs and revenues can be impacted by an increase in labor costs as the company looks to hire talent with new skills and capabilities for the digital economy who may be in short supply.

5. Future relationship between Costs and Income

Our Companys future costs and revenues will be determined by competition, demand/supply situation, Indian Government Policies, and interest rates quoted by banks & others.

6. Extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or services or increased sales prices.

Increases in our revenues are by and large linked to increases in the volume of business.

7. Total turnover of each major industry segment in which the issuer company operates.

The Company is operating in textile industry. Relevant industry data, as available, has been included in the chapter titled "Our Industry" beginning on page 149 of this Draft Prospectus.

8. Status of any publicly announced new products or business segments

Our Company has not announced any new services and product and segment / scheme, other than disclosure in this Draft Prospectus.

9. The extent to which the business is seasonal.

Our business is not seasonal in nature.

10. Competitive Conditions

We face competition from existing and potential competitors which is common for any business. We have, over a period of time, developed certain competitive strengths which have been discussed in section titled "Our Business" on page 177 of this Draft Prospectus

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