international as well as Indian designers. We then select trends that seem relevant for our products and commence
development of textile designs and garment samples that are specific to the needs of our target consumer.

Procurement, Raw Materials and Supply Chain Process

We are a retail focused company and accordingly, we outsource our manufacturing operations primarily to job
workers. In our experience, this helps in keeping our fixed costs low. In the three months ended June 30, 2021, we
worked closely with over 42 job workers for manufacturing our products, with a significant majority located in
Tamil Nadu. We exercise control and regular supervision over the manufacturing operations at the facilities of our
job workers through our personnel who are either stationed at such facilities or periodically visit these facilities for
inspections, enabling us to efficiently carry out production changes in designs or quantity of products required.

Our arrangements with our job workers are on a purchase order basis, on a non-exclusive basis, to provide us
manufacturing services in compliance with the quality standards and other requirements specified by us, such as
time and place of delivery, specified by us. Our arrangement specify that the job workers shall utilize their own
manufacturing facilities, personnel and equipment and that the personnel utilized by the job workers shall remain
on their rolls. We are required to provide the raw materials, including our logos to the job workers together with
instructions as to the specifications to carry out the manufacturing services. We retain the title to the raw materials
provided by us and our job workers are required to return the unutilized raw materials to us. As part of these
arrangements, we retain the right to inspect the premises or facilities our job workers during business hours. We
are also able to ensure quality of the end-products given that we source the raw materials directly and provide to
the job workers.

The raw materials utilized in the manufacture of our products include dyed fabrics and trim materials. We buy
such fabrics and materials and then issue the same to job workers for conversion into products as per our
specifications. In the three months ended June 30, 2021, we sourced raw materials from approximately 73
suppliers, located across India. In our experience, one of our competitive strengths lies in building and managing
an extensive sourcing network to comply with our stringent quality requirements and to support the requirements
of our product development teams. We do not enter into long-term agreements with our suppliers and instead
issue purchase orders in line with our sourcing requirements. We seek to limit our purchases from traders and
intermediaries and intend to increasingly purchase fabrics directly from mills or weavers by blocking a significant
portion of their yearly capacity in order to maintain consistency of quality and ensure timely delivery. For certain
products, we import or procure finished products directly from third parties.

Our sourcing and supply chain process commences with analysis of a supplier’s production capacity for each
season, based on deliveries and quantity supplied in the previous season. Based on this analysis, we allocate
requirements and place orders accordingly. Our analysis and planning procedures also include allocating certain
surplus capacity to additional suppliers in order to maintain a capacity buffer to manage increased demand or
delivery failures. Our gross margins were % 1,703.25 million, = 2,344.80 million, = 1,466.90 million and 2 174.13
million and 59.71%, 59.81%, 58.52% and 56.18% in Fiscals 2019, 2020 and 2021 and in the three months ended
June 30, 2021, respectively.

Once we have analyzed and allocated our sourcing requirements we emphasize interaction among our production
and quality control team and our suppliers on a regular basis, in order to review our supplier’s performance and
production status. We also regularly visit suppliers’ production facilities and offices to address any issues or
bottlenecks during production.

Quality Control Initiatives

We are committed to maintaining quality standards in all steps of our sourcing and production cycle. The quality
of raw material is critical to our business and we control this process in-house through an internal quality assurance
team of 24 employees, as of September 30, 2021. We carry out fabric and garment inspections at our suppliers
and job workers units based on internal quality standards, conformity with regulatory processes, and product
quality tracking. Our quality assurance team also works to ensure that personnel working in all our departments,
ranging from sourcing to sales and marketing, are adequately trained.

Inventory Management, Logistics and Warehousing

Our inventory management processes include product allocation for all our sales channels and store planning
based on assessing sales potential and requirements. The analysis for stocking of our products is supported by our

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