Khazanchi Jewellers Ltd Management Discussions

You should read the following discussion of our financial position and results of operations together with our Restated Financial Information which have been included in this Draft Prospectus. The following discussion and analysis of our financial position and results of operations is based on our Restated Financial Information for the period ended December 31, 2022 and for financial years ended March 31, 2022, 2021 and 2020 including the related notes and reports, included in this Draft Prospectus prepared in accordance with requirements of the Companies Act and restated in accordance with the SEBI Regulations.

This discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those described under "Risk Factors" and "Forward Looking Statements" on pages 23 and 16, respectively, and elsewhere in this Draft Prospectus.

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

BUSINESS OVERVIEW:

Our company is a prominent player in the Indian jewellery industry, with a strong presence in both wholesale and retail sectors. We specialize in the production and sale of a wide range of jewellery products, including gold jewellery, diamond jewellery, precious stones, and other fancy jewellery and bullion in the form of coins and bars. Our jewellery business has a rich history spanning over three decades in the Indian jewellery industry. Our promoters are experienced entrepreneurs with over 25 years of expertise in the field. We offer a diverse range of jewellery products and is dedicated to designing, manufacturing, and selling high-quality jewellery that includes necklaces, chains, rings, earrings, bangles, bracelets, pendants, nose pins, mangalsutras, and kadas Our focus is on creating exquisite wedding jewellery and other pieces suitable for festive occasions.

As on the date of this Draft Prospectus, we have one showroom located at No. 130, NSC Bose Road, Sowcarpet Chennai 600079, Tamil Nadu, India. We intend to establish one more showroom at 286, NSC Bose Road, Sowcarpet, Chennai 600079.

We hold a BIS Hallmark Certificate, a qualified jeweller to carry out transactions on the IIBX (India International Bullion Exchange IFSC Limited) platform for the purpose of import of gold and we holds a Import Export Certificate.

We strive to deliver excellence, consistently. Our constant endeavour is to maintain the highest standard and quality of our gold, diamonds and precious stones used in our jewel pieces. We are offering an experience that takes into consideration our customers unique needs and preferences.

Our Company is promoted by Tarachand Mehta and Goutham who have a combined experience of more than 4 decades in the jewellery industry. Each of our promoter, directors are involved in the critical aspects of our business, including expansion, finance, sales and marketing.

Business Model

Raw Material Procurement

The main raw material for our products is Gold and Bars. We majorly purchase our requirement of Gold from our group company namely Pathik Sales Private Limited. We also purchase Gold Bars from Private parties and Banks. Apart from this, the old gold jewellery is purchased through exchange scheme which is refined thereafter and used as the raw material for our products.

Manufacturing and designing

The designing and production of the ornaments is done based upon the customers preference, taste and style. We get the items produced from independent third party Artisans based on the requirements and designs of the customers.

Placing of the products

The jewellery products are then placed at the shop for display for the retail customers. The jewellery products are placed on sale or approval basis and sales are booked when the goods are sold to the customers.

Sale to end customer

The jewellery products are sold to the retail customers from the shop. We also get the jewellery products produced through outsourcing in case there are any specific demands of the customers. Apart from this, we also carry out sale of jewellery on wholesale basis for our institutional customers.

After January 01, 2023, the Directors of our Company confirm that, there have not been any significant material developments.

FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factors" on page 23 of this Draft Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

Government Regulations & Policies;

Competition from exiting players;

Failure to adapt to the changing technology in our industry of operation may adversely affect our business and financial conditions;

Occurrence of Environmental problems & uninsured losses;

Conflicts of interest with affiliated companies, the Promoters group and other related parities;

The performances of the financial markets in India;

Our ability to expand our geographical areas of operations;

Concentration of ownership among our Promoters;

Failure to comply with regulations prescribed by authorities of the jurisdictions in which we operate;

Our ability to retain our key management persons and other employee SIGNIFICANT ACCOUNTING POLICIES

For Significant accounting policies please refer Significant Accounting Policies and Notes to accounts, "Note 1" beginning under Chapter titled "Restated Financial Information" beginning on page 135 of the Draft Prospectus.

RESULTS OF OUR OPERATION BASED ON RESTATED FINANCIAL INFORMATION

				For the year ended March 31
Particulars	As at December 31,2022	% of Total Income	2022	% of Total Income	2021	% of Total Income	2020	% of Total Income
Revenue From
	33,383.52	99.80	25,694.48	99.59	38,181.27	99.84	36,108.84	99.84
Operations
Other Income	67.44	0.20	105.27	0.41	61.62	0.16	56.52	0.16
Total Income (A)	33450.96	100.00	25799.75	100.00	38242.89	100.00	36165.36	100.00
EXPENDITURE
Purchases of Stock-in- trade	33932.57	101.44	24992.21	96.87	38196.40	99.88	36479.91	100.87
Changes in Inventories	(1771.27)	(5.30)	(471.53)	(1.83)	(1476.88)	(3.86) (1346.42)	(3.72)
Employees Benefit Expenses	63.92	0.19	76.43	0.30	71.05	0.19	76.12	0.21
Finance Cost	463.12	1.38	422.74	1.64	451.46	1.18	552.08	1.53
Depreciation & Amortization Expenses	4.27	0.01	8.89	0.03	6.47	0.02	3.91	0.01
Other Expenses	88.26	0.26	349.51	1.35	630.74	1.65	96.44	0.27
Total Expenses (B)	32780.87	98.00	25378.25	98.37	37879.24	99.05	35862.04	99.16
Profit Before
Extraordinary items and tax C=A-B	670.09	2.00	421.50	1.63	363.65	0.95	303.32	0.84
Extra-ordinary Item (D)	-	-	-	-	-	-	-	-
Profit Before Tax E=C-D	670.09	2.00	421.50	1.63	363.65	0.95	303.32	0.84
Tax Expenses
Current Tax	84.52	0.25	95.63	0.37	88.46	0.23	74.26	0.21
Deferred Tax	0.02	0.00	(0.75)	(0.00)	(0.38)	(0.00)	(1.64)	(0.00)
Expenses/Income
Total Tax Expenses (F)	84.54	0.25	94.88	0.37	88.08	0.23	72.62	0.20
Net Profit for the Year G= E-F	585.55	1.75	326.62	1.27	275.57	0.72	230.70	0.64

Main component of our Profit and Loss accounts

Income

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

Revenue from operations:

Our revenue from operations as percentages of our total income was 99.80% for December 31, 2022 and 99.59%, 99.84% and 99.84% for the financial year ended March 31, 2022, March 31, 2021, March 31, 2020 respectively.

Other Income

It is the income earned from sources like Interest income from Deposits, Gain from sale of Land, Rental income and other receipts. Our other income as percentages of our total income was 0.20% for the December 31, 2022 and 0.41%, 0.16% and 0.16% for the financial year ended March 31, 2022, March 31, 2021and March 31, 2020 respectively.

Expenditure:

Our total expenditure primarily consists of purchase of stock-in-trade, change in inventories, employee benefit expenses, finance cost, depreciation and other expenses. Our expenditure as percentages of our total income was 98.00% for the December 31, 2022 and 98.37%, 99.05% and 99.16% for the financial year ended March 31, 2022, March 31, 2021and March 31, 2020 respectively.

Employee benefits expense

Our employee benefits expense primarily comprise of salaries and wages, Directors remuneration, other retirement benefits and staff welfare expenses. Our employee benefit expenses as percentages of our total income were 0.19% for the December 31, 2022 and 0.30%, 0.19% and 0.21% for the financial year ended March 31, 2022, March 31, 2021and March 31, 2020 respectively.

Finance Cost

It includes interest on loans from banks & others and Bank charges. Our finance cost as percentages of our total income was 1.38% for the December 31, 2022 and 1.64%, 1.18% and 1.53% for the financial year ended March 31, 2022, March 31, 2021and March 31, 2020 respectively.

Depreciation & Amortization

Depreciation includes depreciation on tangible assets like furniture & fixtures, computers and office equipment. Amortization includes amortization of intangible assets. Our depreciation and amortization as percentages of our total income was 0.01% for the December 31, 2022 and 0.03%, 0.02% and 0.01% for the financial year ended March 31, 2022, March 31, 2021and March 31, 2020 respectively.

Other Expenses

Other expenses include audit fees, freight charges, advertising expenses, electricity expenses, insurance expenses, legal & professional expenses, travelling expenses, repairs & maintenance, rent paid etc. Our other expenses as percentages of our total income were 0.26% for the December 31, 2022 & 1.35%, 1.65% and 0.27% for the financial year ended March 31, 2022, March 31, 2021and March 31, 2020 respectively.

Provision for Tax

The provision for current taxation is computed in accordance with relevant tax regulation. Deferred tax is recognized on timing differences between the accounting and the taxable income for the year and quantified using the tax rates and laws enacted or subsequently enacted as on balance sheet date. Deferred tax assets are recognized and carried forward to the extent that there is a virtual certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized in future.

Details for the period ended December 31, 2022

Total Income

Our Company is majorly engaged in the sale of Gold Bullion & Ornaments. The total income from April 01, 2022 to December 31, 2022 was 33,450.96 Lakh which includes revenue from operations and Other Income.

Expenses

Purchases of Stock-in-trade

The Purchases of Stock-in-trade was 33,932.57 Lakh from April 01, 2022 to December 31, 2022 which is 101.30 % of the Total Income.

Change in the Inventories

The Change in the Inventories was (1,771.27) Lakh from April 01, 2022 to December 31, 2022 which is (5.30%) of the Total Income.

Employee Benefit Expense

Employee Benefit expenses was 63.92 Lakhs from April 01, 2022 to December 31, 2022. The Employee

Benefit expense was 0.19% of Total Income.

Finance Cost

Finance Costs from April 01, 2022 to December 31, 2022 was 463.12 Lakh which is 1.38 % of Total Income.

Depreciation and amortization expense

Depreciation and amortization expense from April 01, 2022 to December 31, 2022 was 4.27 Lakhs which is

0.01 % of Total Income.

Other Expenses

Other Expenses were 88.26 Lakh from April 01, 2022 to December 31, 2022. The Other expense was 0.26 % of Total Income.

Profit before Tax (PBT)

The Profit before Tax was 670.09 from April 01, 2022 to December 31, 2022. During this period, our Company recorded Profit before Tax margin of 2.21 % of Total Income.

Profit after Tax (PAT)

Profit after Tax was 585.55 Lakh from April 01, 2022 to December 31, 2022. During this period, our Company recorded Profit after Tax margin of 1.75% of Total Income.

COMPARISON OF FINANCIAL YEAR ENDED MARCH 31, 2022 WITH FINANCIAL YEAR ENDED MARCH 31, 2021

Revenue From Operations

The revenue from operations for the FY 2021-22 was 25,694.48 Lakh as compared to 38,181.27 Lakh during the FY 2020-21 showing a decrease of 32.70%. The decreased was due to reduced market demand, changes in consumer preference as abnormal increase in prices.

Other Income

The other income for the FY 2021-22 was 105.27 Lakh as compared to 61.62 Lakh for the FY 2020-21 showing an increase of 70.84 %.

Expenses

Purchase of Stock-in-trade

Purchase of Stock-in-trade for the FY 2021-22 was 24,992.21 Lakh as compared to 38,196.40 Lakh during the FY 2020-21 showing a decrease of 34.57%. The decrease was due to reduction in sales.

Employee Benefit Expense

Employee Benefit expenses for the FY 2021-22 76.43 Lakh as compared to 71.05 Lakh for FY 2020-21 showing an increase of 7.57%. The increase was due to normal increase in salary of the employees.

Finance Cost

Finance cost for the FY 2021-22 422.74 Lakh as compared to 451.46 Lakh in FY 2020-21 showing decrease of 6.36%. The decrease was due to reduced borrowings and utilisation of Overdraft Limits as there was reduction in purchase.

Depreciation & Amortization

The Depreciation and amortization expense for FY 2021-22 was 8.89 Lakh as compared to 6.47Lakh for FY 2020-21 showing an increase of 37.40%. The increase was due to addition of new assets.

Other Expense

Other Expenses for the FY 2021-22 was 349.51 Lakh as compared to 630.74 Lakh for FY 2020-21 showing a decrease of 44.59%. The decrease was due to reduction in sales.

Profit before Tax

The Profit before Tax was 421.50 Lakh in FY 2021-22 as compared to 363.65Lakh in FY 2020-21 by showing an increase of 15.90%. The increase was due to reduction in expenses as stated above and increase in prices of Gold.

Profit after Tax (PAT)

Profit After Tax 326.62Lakh in the FY 2021-22 as compared to 275.57 Lakh in FY 2021-22 showing increase of 18.53%. The increase was due to reduction in expenses as stated above and increase in prices of Gold..

COMPARISON OF FINANCIAL YEAR ENDED MARCH 31, 2021 WITH FINANCIAL YEAR ENDED MARCH 31, 2020

Revenue from operations

The revenue from operations for the FY 2020-21 was 38,181.27 Lakh as compared to 36,108.84 Lakh during the FY 2019-20 showing an increase of 5.74 %. The increase was due to increase in demand in the market.

Other Income

The other income for the FY 2020-21 was 61.62 Lakh as compared to 56.52 Lakh for the FY 2019-20 showing an increase of 9.02%.

Expenses

Purchase of Stock-in-trade

Purchase of Stock-in-trade for the FY 2020-21 was 38,196.40 Lakh as compared to 36,479.91 Lakh during the FY 2019-20 showing an increase of 4.71%. The increase was due to improvement in sales for the year.

Employee Benefit Expense

Employee Benefit expenses for the FY 2020-21 was 71.05 Lakhs as compared to 76.12 Lakh for FY 2019-20 showing a decrease of 6.66 %. The decrease was due to reduction in work force.

Finance Cost

Finance cost for the from FY 2020-21 451.46 Lakh as compared to 552.08 Lakh in FY 2019-20 showing decrease of 18.23 %. The decrease was due to less borrowings.

Depreciation & Amortization

The Depreciation and amortization expense for FY 2020-21 was 6.47 Lakh as compared to 3.91 Lakh for FY 2019-20 showing increase of 65.47%. The increase was due to additions of fixed assets.

Other Expense

Other Expenses for FY 2020-21 was 630.74 Lakh as compared to 96.44 Lakh for FY 2019-20 showing an increase of 554.02%. The increase was due to improvement in sales for the year.

Profit before Tax

The Profit before Tax was 363.65 Lakh in FY 2020-21 as compared to 303.32 Lakh in FY 2019-20 by showing an increase of 19.89%. The increase was due to improvement in sales.

Profit after Tax (PAT)

Profit After Tax was 275.57 Lakh in the FY 2020-21 as compared to 230.70 Lakh in FY 2019-20 by showing increase of 19.45%. The increase was due to improvement in sales.

CASH FLOW

Particular	For the period ended December 31,2022	For the year ended March 31
		2022	2021	2020
Net Cash generated/(used in) operating activities (A)	354.42	(113.46)	451.26	623.71
Net Cash generated from/(used in) investing activities (B)	(53.97)	(390.14)	425.23	(412.77)
Net Cash generated from/ (used in) financing activities (C)	(434.77)	509.52	(757.95)	(415.05)
Net change in cash and cash equivalent (A+B+C)	(134.33)	5.92	118.53	(204.12)
Cash and Cash Equivalent at the beginning of the year	162.12	156.20	37.66	241.78
Cash and Cash Equivalents at the end of the year	27.79	162.12	156.20	37.66

Cash and Cash Equivalents at the end of the year 27.79 162.12 156.20 37.66

Disclosures of the period December 31, 2022

Cash Flows from Operating Activities

Net Cash Flow from Operating Activities was 354.42 Lakh from April 01, 2022 to December 31,2022.

Cash Flows from Investment Activities

Cash Flow from Investment activities was ( 53.97) Lakh from April 01, 2022 to December 31,2022.

Cash Flows from Financing Activities

Cash Flow from Financing activities was ( 434.77) Lakh from April 01, 2022 to December 31,2022.

Net Cash Flow from Operating Activities

Financial year 2021-2022

In the F.Y 2021-22 net Cash Flow generation in Operating Activities was ( 113.46) Lakh. Net Profit before tax and extraordinary items stood at 421.29 Lakhs. Primary adjustments were on account of finance cost of 422.74 Lakhs.

The Operating Cash Flows before working capital changes was 853.12 Lakhs.

The changes in Working Capital were due to:

a) Increase in Trade Receivables of ( 262.36 Lakhs);

b) Decrease in Trade payables of ( 124.94 Lakhs);

c) Increase in Inventories of ( 471.53 Lakhs);

d) Increase in Other Current liabilities of 1.72 Lakhs;

e) Decrease in Loans & advances of 5.70 Lakhs;

f) Increase in Other Current Assets of ( 0.30 Lakhs);

g) Decrease in short term provisions of ( 19.25 Lakhs);

h) Income tax paid was 95.63 Lakhs for F.Y 2022

Financial year 2020-2021

In the F.Y 2020-21 Net Cash Flow Generation in Operating Activities was 451.26 Lakh. Net Profit before tax and extraordinary items stood at 363.66 Lakhs. Primary adjustments were on account of finance cost of 452.08 Lakhs and depreciation of 6.47 Lakhs.

The Operating Cash flows before Working Capital changes was 821.13 Lakhs.

The changes in Working Capital were due to:

a) Decrease in Trade Receivables of 61.73 Lakhs;

b) Increase in Trade Payables of 956.26 Lakhs;

c) Increase in Inventories of ( 1,476.88 Lakhs);

d) Decrease in Loans & advances of 146.72 Lakhs;

e) Decrease in Other Current Assets of 16.87 Lakhs;

f) Increase in Short term provisions of 13.90 Lakhs;

g) Income tax paid was 88.46 Lakhs for F.Y 2021

Financial year 2019-2020

In the F.Y 2019-20 Net Cash Flow Generation in Operating Activities was 623.71 Lakh. Net Profit before tax and extraordinary items stood at 303.32 Lakhs. Primary adjustments were on account of finance cost of 552.08 Lakhs and depreciation of 3.91 Lakhs and interest received 20.28 Lakhs.

The Operating Cash flows before Working Capital changes was 839.03 Lakhs.

The changes in working capital were due to: a) Decrease in Trade Receivables of 752.13Lakhs;

b) Decrease in Trade Payables of ( 165.92 Lakhs);

c) Increase in Inventories of ( 1,346.42 Lakhs);

d) Decrease in Other Current liabilities of ( 12.16 Lakhs);

e) Decrease in Loans & advances of 643.35 Lakhs;

f) Increase in Other Current Assets of ( 9.16 Lakhs);

g) Decrease in Short term provisions of ( 2.87 Lakhs);

h) Income tax paid was 74.26 Lakhs for F.Y 2021

Cash Flows from Investing Activities

Financial year 2022

Net Cash used in Investing Activities was 390.14 Lakhs in the F.Y 2021-22, primarily on account of purchases of Tangible Assets of ( 1110.35 Lakhs), purchases of Intangible Assets of ( 3.44 Lakhs) and proceeds from sales of Tangible Assets of 723.65 Lakhs.

Financial year 2021

Net Cash from Investing Activities was 425.23 Lakhs in the F.Y 2020-21, primarily on account of purchases of Tangible Assets of ( 14.37 Lakhs), sale of Tangible Assets of 438.52 Lakhs and interest received of 1.08 Lakhs.

Financial year 2020

Net Cash used in Investing Activities was 412.77 Lakhs in the F.Y 2019-20, primarily on account of purchases of Tangible Assets of ( 433.05 Lakhs) and interest received of 20.28 Lakhs.

Cash Flows from Financing Activities

Financial year 2021-22

Net Cash generated from Financing Activities was 509.52 Lakhs in the F.Y 2021-22, primarily on account of proceeds from Short Term Borrowings of 157.68 Lakhs, Long Term Borrowings of 774.58 Lakhs and finance cost of 422.74 Lakhs.

Financial year 2020-21

Net Cash used in Financing Activities was ( 757.95 Lakhs) in the F.Y 2020-21, primarily on account of proceeds from Short Term Borrowings of 2,903.09 Lakhs, repayment of Long Term Borrowings of 3,208.97 Lakhs and finance cost of 452.08 Lakhs.

Financial year 2019-20

Net Cash used in Financing Activities was of ( 415.05 Lakhs) in the F.Y 2019-20, primarily on account of proceeds from Long Term Borrowings of 137.02 Lakhs and finance cost of 552.08 Lakhs.

Related Party Transactions

Related party transactions with certain of our promoters, directors and their entities and relatives primarily relates to remuneration payable, consultancy received, interest paid, purchase & sale of goods, loans & deposits taken & paid, advance to suppliers and Issue of Equity Shares. For further details of such related parties, refer chapter titled "Financial Statements" on page 135 of this Draft Prospectus.

Contingent Liabilities

As per the restated financial statement of the company there are no Contingent Liabilities of the Company for the nine months period ended on December 31, 2022 and financial years ended on March 31, 2022, 2021 and 2020.

Off-Balance Sheet Items

We do not have any other off-balance sheet arrangements, derivative instruments or other relationships with any entity that have been established for the purposes of facilitating off-balance sheet arrangements.

Qualitative Disclosure about Market Risk

Financial Market Risk

Market risk is the risk of loss related to adverse changes in market prices, including interest rate risk. We are exposed to interest rate risk, inflation and credit risk in the normal course of our business.

Interest Rate Risk

Our financial results are subject to changes in interest rates, which may affect our debt service obligations and our access to funds.

Liquidity Risk

Liquidity risk is the risk that we will encounter difficulties in meeting the obligations associated with our financial liabilities that are settled by delivering cash or another financial asset. Our approach to managing liquidity is to ensure, to the extent possible, that we will have sufficient liquidity to meet our liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to our reputation. We manage liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Effect of Inflation

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

Credit Risk

We are exposed to credit risk on monies owed to us by our customers. If our customers do not pay us promptly, or at all, we may have to make provisions for or write-off such amounts.

Reservations, Qualifications and Adverse Remarks

Except as disclosed in chapter titled "Financial Statements" on page 135 of this Draft Prospectus, there have been no reservations, qualifications and adverse remarks.

Details of Default, if any, including therein the Amount Involved, Duration of Default and Present Status, in Repayment of Statutory Dues or Repayment of Debentures or Repayment of Deposits or Repayment of Loans from any Bank or Financial Institution

Except as disclosed in chapter titled "Financial Statements" on page 135 of this Draft Prospectus, there have been no defaults in payment of statutory dues or repayment of debentures & interest thereon or repayment of deposits & interest thereon or repayment of loans from any bank or financial institution and interest thereon by the Company.

Material Frauds

There are no material frauds, as reported by our statutory auditor, committed against our Company, in the last three Fiscals.

Unusual or Infrequent Events or Transactions

As on date, there have been no unusual or infrequent events or transactions including unusual trends on account of business activity, unusual items of income, change of accounting policies and discretionary reduction of expenses.

Significant Economic Changes that Materially Affected or are Likely to Affect Income from Continuing Operations

Indian rules and regulations as well as the overall growth of the Indian economy have a significant bearing on our operations. Major changes in these factors can significantly impact income from continuing operations.

There are no significant economic changes that materially affected our Company‘s operations or are likely to affect income from continuing operations except as described in chapter titled "Risk Factors" on page 23 of this Draft Prospectus.

Known Trends or Uncertainties that have had or are expected to have a Material Adverse Impact on Sales, Revenue or Income from Continuing Operations

Other than as described in the section titled "Risk Factors" on page 23 of this Draft Prospectus and in this chapter, to our knowledge there are no known trends or uncertainties that are expected to have a material adverse impact on revenues or income of our Company from continuing operations.

Future Changes in Relationship between Costs and Revenues, in Case of Events Such as Future Increase in Labour or Material Costs or Prices that will Cause a Material Change are known

Other than as described in chapter titled "Risk Factors" on page 23 of this Draft Prospectus and in this section, to our knowledge there are no known factors that might affect the future relationship between cost and revenue.

Total Turnover of Each Major Industry Segment in Which the Issuer Operates

Our company works under single reportable Industry segment.

Competitive Conditions

We have competition with Indian manufacturers & traders and our results of operations could be affected by competition in the jewellery industry in India. We expect competition to intensify due to possible new entrants in the market, existing competitors further expanding their operations and our entry into new markets where we may compete with well-established unorganized companies / entities. This we believe may impact our financial condition and operations. For details, please refer to the chapter titled "Risk Factors" on page 23 of this Draft Prospectus.

Increase in income

Increases in our income are due to the factors described above in this chapter under "Significant Factors

Affecting Our Results of Operations" and chapter titled "Risk Factors" on page 23 of this Draft Prospectus.

Status of any Publicly Announced New Products or Business Segments

Except as disclosed elsewhere in the Draft Prospectus, we have not announced and do not expect to announce in the near future any new products or business segments.

Significant Dependence on a Single or Few Customers

Our Company is not dependent on a single or few customers.

Seasonality of Business

The nature of our business is not seasonal. For further details please refer chapter titled "Risk Factors" on page 23 of this Draft Prospectus.