FAZE THREE LTD. --A Textile co. Rising From ASHES to GLORY

Everytime you exports products you have to pay duties to Government of India.

Government uses duties to discourage exports. For example let us say we had bad rainfall and agricultural output comes down. Duties are used to prevent exports of whatever little is produced as this will lead to bigger shortages in India causing price rise or inflation.

Government wants to encourage textle exports not discourage the same. So the duty drawback is the government giving back or refunding duties to a textile exporter the he/ she has already paid. So these drawbacks are here to stay.

So please dont misinterpret the data you see

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Question was asked in similar lines to Gokaldas management during Q2 concall. Management indicated that it will get priced into customers to what ever extent possible as it will be industry wise phenomenon and also depends on regional competitiveness compared to other countries like Bangladesh. Govt of India may extend the RoSCTL benefits beyond Fy24. Below is the transcript snippet from the Gokaldas concall: