Subcontracting charges

Subcontracting charges include sub-contracting and sample making charges that increased by 224.12% from 2 7.63
million in the three months ended June 30, 2020 to 2 24.73 million in three months ended June 30, 2021 primarily
due to increased production activities in the three months ended June 30, 2021.

Employee benefits expense

Employee benefits expenses remained relatively stable and increased marginally by 0.86% from = 157.62 million
in the three months ended June 30, 2020 to 2 158.97 million in three months ended June 30, 2021 primarily due
to an increase in salaries, wages and bonus by 0.63% from % 147.43 million in the three months ended June 30,
2020 to % 148.36 million in three months ended June 30, 2021. Staff welfare expenses decreased by 10.76% from
% 3.70 million in the three months ended June 30, 2020 to % 3.30 million in three months ended June 30, 2021 on
account of optimisation of expenses. This was marginally offset by an increase in the contribution to provident
and other funds by 18.13% from 2 3.63 million in the three months ended June 30, 2020 to % 4.28 million in three
months ended June 30, 2021; and an increase in gratuity expenses by 5.81% from 2 2.87 million in the three
months ended June 30, 2020 to 2 3.03 million in three months ended June 30, 2021 attributable to the increase in
service costs.

Finance costs

Finance costs increased by 10.63% from % 51.57 million in the three months ended June 30, 2020 to 2 57.05
million in three months ended June 30, 2021 primarily due to an increase in lease rental discounting by 11.69%
from 2 50.96 million in the three months ended June 30, 2020 to 2 56.92 million in three months ended June 30,
2021 as a result of the adoption of Ind AS 116. Interest expense on cash credit facility decreased from % 0.60
million in the three months ended June 30, 2020 to 2 0.13 million in three months ended June 30, 2021 primarily
due to reduced usage of cash credit facility in the three months ended June 30, 2021.

Depreciation and amortisation expenses

Depreciation and amortisation expenses increased by 9.99% from = 145.90 million in the three months ended June
30, 2020 to 2 160.47 million in three months ended June 30, 2021, primarily on account of increase in depreciation
of lease assets by 9.17% from 2 125.72 million in the three months ended June 30, 2020 to = 137.24 million in
three months ended June 30, 2021, due to new leases and renewal of agreements. Depreciation of tangible assets
also increased by 15.90% from 2 19.38 million in the three months ended June 30, 2020 to 2 22.46 million in three
months ended June 30, 2021 while amortization of intangible assets also decreased by 5.20% from 2 0.81 million
in the three months ended June 30, 2020 to 2 0.77 million in three months ended June 30, 2021.

Other expenses

Other expenses increased by 69.49% from % 43.86 million in the three months ended June 30, 2020 to 2 74.34
million in three months ended June 30, 2021, primarily due to an increase in:

¢ Sales promotion expenses that increased by 136.56% from % 5.81 million in the three months ended June 30,
2020 to 2 13.74 million in three months ended June 30, 2021, primarily due to increased operations.

¢ Rent expenses that increased by 101.51% from 7.20 million in the three months ended June 30, 2020 to =
14.51 million in three months ended June 30, 2021, primarily due to lease extension options held and
exercised by our Company.

¢ Repairs and maintenance expenses of buildings that increased by 77.72% from % 7.20 million in the three
months ended June 30, 2020 to = 12.80 million in three months ended June 30, 2021, primarily due to
increased EBO operations and warehouse operations.

¢ Bank charges that increased by 156.41% from 2 0.81 million in the three months ended June 30, 2020 to =
2.09 million in three months ended June 30, 2021, primarily due to renewal fees and charges towards letter
of credit.

* Miscellaneous expenses that increased by 62.28% from % 1.33 million in the three months ended June 30,
2020 to % 2.17 million in three months ended June 30, 2021, primarily due to increased operations.

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