AFFLUENCE

INDUSTRY DEVELOPMENTS & BUSINESS OUTLOOK We are in the process of rolling out aggressive expansion plans to capitalise on the industry opportunity in front of us, focusing mainly on markets of the South Indian states. All our strategies have been undertaken to maximise our overall profitability, along with the return profile of our business. With the formalisation of the industry along with mandatory hallmarking prescribed by the Government, we are well-poised to capitalise on emerging opportunities and demands in the coming years The global jewellery market is poised for a remarkable growth driven by evolving consumer preferences towards distinctive jewellery styles. The growth is expected to accelerate due to rising GDP per capita, increasing consumer disposable income, and the appeal of gold as a long-term investment. India’s formidable position as the second-largest gold market, where an impressive 70% of the demand is attributed to exquisite jewellery, underscores the immense growth opportunities awaiting the organized retail segment. It is also the third-highest component of retail consumption in India. The Indian jewellery retail sector is currently valued at approximately $76.3 billion in FY23 and is expected to grow substantially. This market is expected to grow at a CAGR of 5.54% by 2027. This projection signifies the sector’s potential for significant expansion and economic impact in the coming years. The organised retail segment currently holds a share of approximately 35%, featuring prominent national and regional players. FY23 was an exceptional year for the jewellery market and is expected to expand to $103.6 billion by the end of this CY. India’s gems and jewellery exports reached US$ 39.45 billion in 2021-22, a 54.68% rise from the previous year. In 2022, India ranks first among the top exporters in cut & polished diamonds, and second in gold jewellery, silver jewellery and lab-grown diamonds. The Government has undertaken various measures recently to promote investment and upgrade technology and skills to promote ‘Brand India’ in the international market. The Government has permitted 100% FDI in the sector under the automatic route, wherein the foreign investor or the Indian company do not require any prior approval from the Reserve Bank or the Government of India. The Indian Government also signed a Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE) in March 2022, this will allow the Indian Gems and Jewellery industry to further boost exports. CEPA will provide the industry with duty-free access to the UAE market. India’s Gems Jewellery Export Promotion Council (GJEPC) aims to triple its exports to the UAE post the CEPA. In June 2021, the World Gold Council and Gem and Jewellery Export Promotion Council signed an agreement to promote gold jewellery in India. Under the agreement terms, both partners will jointly fund a multi-media marketing campaign that would aim to increase awareness, relevance and adoption of gold jewellery amongst Indian consumers, especially in millennials. The government has reduced import duty for Gold & Silver (from 12.5% to 7.5%) and Platinum (from 12.5% to 10%) to bring down the prices of precious metals in the local market. The Government has also reduced custom duty on cut and polished diamond and colored gemstones from 7.5% to 5% and NIL. In the coming years, growth in the gems and jewellery sector would largely be contributed by the development of large retailers/brands. Established brands are guiding the organised market and are opening opportunities to grow. The improvement in availability along with the reintroduction of low-cost gold metal loans and likely stabilisation of gold prices at lower levels is also expected to drive volume growth for jewellers over the short to medium term. India has 450 organised jewellery manufacturers, importers & exporters and is the hub for jewellery manufacturing. These players have benefited greatly due to the increasing liberal policies by the government. The demand for jewellery is expected to be significantly supported by the recent positive developments in the industry. India’s gems and jewellery industry is expected to reach US$ 100 billion by 2027.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO The information pertaining to conservation of energy, technology absorption, Foreign exchange Earnings and outgo as required under Section 134 (3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 given in as Annexure - I, which forms a part of this Report Annexure –I Information under Section 134(3) (m) of the Companies Act, 2013 read with Rule 8(3) the Companies (Accounts) Rules 2014 and forming part of the Report of the Directors (A) Conservation of energy- (i) the steps taken or impact on conservation of energy In its endeavor towards conservation of energy your Company ensures optimal use of energy avoid wastages and conserve energy as far as possible. Lightings have been replaced with LEDs in its premises for better energy efficiency. (ii) the steps taken by the company for utilizing alternate sources of energy: Company ensures optimal use of energy as far as possible. (iii) the capital investment on energy conservation equipments: NIL

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO The information pertaining to conservation of energy, technology absorption, Foreign exchange Earnings and outgo as required under Section 134 (3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 given in as Annexure - I, which forms a part of this Report Annexure –I Information under Section 134(3) (m) of the Companies Act, 2013 read with Rule 8(3) the Companies (Accounts) Rules 2014 and forming part of the Report of the Directors (B) Technology absorption- NIL (i) the efforts made towards technology absorption: (ii) the benefits derived like product improvement cost reduction product development or import substitution: (iii) in case of imported technology (imported during the last three years reckoned from the beginning of the financial year)- : (iv) the expenditure incurred on Research and Development:

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO The information pertaining to conservation of energy, technology absorption, Foreign exchange Earnings and outgo as required under Section 134 (3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 given in as Annexure - I, which forms a part of this Report Annexure –I Information under Section 134(3) (m) of the Companies Act, 2013 read with Rule 8(3) the Companies (Accounts) Rules 2014 and forming part of the Report of the Directors (C) Foreign exchange earnings and Outgo: The Company’s main line of business is retail and wholesale of gold and bullions. Particulars 2022-2023 (Rs. in crores) 2021-2022 (Rs. in crores) Foreign Exchange Earning (FOB) Nil Nil Foreign Exchange outgo i) Raw Materials Nil Nil ii) Consumable Stores Nil Nil iii) Capital Goods Nil Nil iv) Foreign Travels Nil Nil v) Others Nil Nil

DIRECTORS’ RESPONSIBILITY STATEMENT Based on the framework of Internal Financial Controls and compliance systems established and maintained by the Company, the work performed by the internal, statutory auditors and external consultants, the Board is of the opinion that the Company’s internal financial controls are adequate and operating effectively during FY 2022-23. Accordingly, pursuant to the requirements of clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013, the directors confirm that- (a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures; (b) the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period; (c) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; (d) the Directors had prepared the annual accounts on a going concern basis; and (e) The Directors had laid down internal financial control to be followed by the Company and that such internal financial control were adequate and operating effectively. (f) The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.