Kaytex Fabrics Ltd.

We have included certain non-GAAP financial measures and other performance indicators relating to our financial performance and business in this Draft Red Herring Prospectus, each of which are supplemental measures of our performance and liquidity and are not required by, or presented in accordance with AS, Indian GAAP, IFRS or U.S. GAAP. Such measures and indicators are not defined under AS, Indian GAAP, IFRS or U.S. GAAP, and therefore, should not be viewed as substitutes for performance, liquidity or profitability measures under AS, Indian GAAP, IFRS or U.S. GAAP. In addition, such measures and indicators are not standardized terms, and a direct comparison of these measures and indicators between companies may not be possible. Other companies may calculate these measures and indicators differently from us, limiting their usefulness as a comparative measure. Although such measures and indicators are not a measure of performance calculated in accordance with applicable accounting standards, our Company’s management believes that they are useful to an Investor in evaluating us as they are widely used measures to evaluate a company’s operating performance. For risks relating to non-GAAP measures, see “Risk Factors – Risks Relating to the Offer and the Objects of the Offer - We have presented certain supplemental information of our performance and liquidity which is not prepared under or required under AS.”

Projects

1. Project Name: Funding capital expenditure for construction of additional warehouse facility in Amritsar

Project Cost: 25.555

2. Project Name: Funding capital expenditure for construction of dedicated sales office in Amritsar

Project Cost: 37.32

3. Project Name: Funding capital expenditure towards purchase of advanced fabric processing system for our existing

Project Cost: 50.1

4. Project Name: Funding our incremental working capital requirements

Project Cost: 300