UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

 WASHINGTON, D.C. 20549

 FORM 10-K

 (Mark One)

 ANNUAL REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the fiscal year ended March 31, 2025

 or

 TRANSITION REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the transition period from to

 Commission file number 001-38474

 Jerash Holdings (US), Inc.

 (Exact name of registrant as specified in its charter)

 Delaware

 81-4701719

 (State or other jurisdiction of

incorporation or organization)

 (I.R.S. Employer

Identification No.)

 277 Fairfield Road, Suite 338, Fairfield, New
Jersey 07004

 (Address of principal executive offices) (Zip Code)

 Registrant's telephone number, including
area code: (201) 285-7973

 Securities registered pursuant to Section 12(b) of the Act:

 Title of each class

 Trading Symbol(s)

 Name of each exchange on which registered

 Common Stock, par value $0.001 per share

 JRSH

 The Nasdaq Stock Market LLC

 Securities registered pursuant to Section 12(g) of the Act: None

is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No

is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes No

(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90 days. Yes No

has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405
of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.
See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company,"
and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large accelerated filer

 Accelerated filer

 Non-accelerated filer

 Smaller reporting company

 Emerging growth company

 If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.

has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial
reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or
issued its audit report.

 If securities are registered pursuant to Section
12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction
of an error to previously issued financial statements.

 Indicate by check mark whether any of those error
corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's
executive officers during the relevant recovery period pursuant to §240.10D-1(b).

is a shell company (as defined in Rule 12b-2 of the Act). Yes No

 The aggregate market value of the registrant's
common stock, par value $0.001 per share, held by non-affiliates of the registrant, as computed by reference to the September 30, 2024
closing price reported by Nasdaq, was approximately $ 21.3 million. Shares of voting stock held by executive officers, directors, holders
owning more than 10% of the outstanding voting stock, and stockholders affiliated with a director or an executive officer have been excluded
from this calculation because such persons may be deemed to be affiliates. Exclusion of such shares should not be construed to indicate
that any of such persons possesses the power, direct or indirect, to control the Registrant, or that any such person is controlled by
or under common control with the Registrant.

 The number of the registrant's shares of
common stock, $0.001 par value per share, outstanding on June 24, 2025 was 12,699,940.

 DOCUMENTS INCORPORATED BY REFERENCE

 Portions of the registrant's 2025 Proxy
Statement (as defined below) are incorporated by reference in Part III of this Annual Report on Form 10-K.

 Page

 Item 1.

 Business

 Item 1A.

 Risk Factors

 Item 1B.

 Unresolved Staff Comments

 Item 1C.

 Cybersecurity

 Item 2.

 Properties

 Item 3.

 Legal Proceedings

 Item 4.

 Mine Safety Disclosure

 Item 5.

 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

 Item 6.

 [Reserved]

 Item 7.

 Management's Discussion and Analysis of Financial Condition and Results of Operations

 Item 7A.

 Quantitative and Qualitative Disclosures about Market Risk

 Item 8.

 Financial Statements and Supplementary Data

 Item 9.

 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 Item 9A.

 Controls and Procedures

 Item 9B.

 Other Information

 Item 9C.

 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Item 10.

 Directors, Executive Officers and Corporate Governance

 Item 11.

 Executive Compensation

 Item 12.

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item 13.

 Certain Relationships and Related Transactions, and Director Independence

 Item 14.

 Principal Accounting Fees and Services

 Item 15.

 Exhibit and Financial Statement Schedules

 Item 16.

 Form 10-K Summary

 Signatures

 i

 Item 1. Business.

 Overview

 Jerash Holdings (US), Inc. ("Jerash Holdings"),
through its wholly owned operating subsidiaries (together, the "Group," "we," "us," or "our"),
is principally engaged in the manufacturing and exporting of customized, ready-made sportswear and outerwear from knitted fabric produced
in its facilities in the Hashemite Kingdom of Jordan ("Jordan"). Our website address is  Information
available on our website is not a part of, and is not incorporated into, this Annual Report on Form 10-K.

 We are a manufacturer for several well-known brands and retailers,
such as VF Corporation (which owns brands such as The North Face, Timberland, and Vans), New Balance, G-III (which licenses brands such
as Calvin Klein, Tommy Hilfiger, DKNY, and Guess), Hugo Boss, American Eagle, and Skechers. Our production facilities include six factories
and four warehouses and we currently employ approximately 6,000 people. The total annual capacity at our facilities was approximately
24 million pieces (average for product categories including t-shirts, polo shirts, pants, shorts, and jackets) as of March 31, 2025.

 Organizational Structure

 Jerash Holdings is a holding company incorporated
in Delaware in January 2016. As of the date of this annual report, Jerash Holdings has the following wholly owned subsidiaries: (i) Jerash
Garments and Fashions Manufacturing Co., Ltd. ("Jerash Garments"), an entity formed under the laws of Jordan, (ii) Treasure
Success International Limited ("Treasure Success"), an entity formed under the laws of Hong Kong Special Administrative Region
of the People's Republic of China ("Hong Kong"), (iii) Chinese Garments and Fashions Manufacturing Co., Ltd. ("Chinese
Garments"), an entity formed under the laws of Jordan and a wholly owned subsidiary of Jerash Garments, (iv) Jerash for Industrial
Embroidery Co., Ltd. ("Jerash Embroidery"), an entity formed under the laws of Jordan and a wholly owned subsidiary of Jerash
Garments, (v) Al-Mutafaweq Co. for Garments Manufacturing Ltd. ("Paramount"), an entity formed under the laws of Jordan and
a wholly owned subsidiary of Jerash Garments, (vi) Mustafa and Kamal Ashraf Trading Company (Jordan) for the Manufacture of Ready-Make
Clothes LLC ("MK Garments"), an entity formed under the laws of Jordan and a wholly owned subsidiary of Jerash Garments; (vii)
Jiangmen Treasure Success Business Consultancy Co., Ltd. ("Jiangmen Treasure Success"), an entity incorporated under the laws
of the People's Republic of China ("China" or the "PRC") and a wholly owned subsidiary of Treasure Success,
(viii) Jerash The First Medical Supplies Manufacturing Company Limited ("Jerash The First"), an entity formed under the laws
of Jordan and a wholly owned subsidiary of Jerash Garments, (ix) Jerash Supplies, LLC ("Jerash Supplies"), an entity formed
under the laws of the State of Delaware, (x) Kawkab Venus Dowalyah Lisenaet Albesah ("Kawkab Venus"), a limited liability
company established in Amman, Jordan, and (xi) Ever Winland Limited ("Ever Winland"), a limited liability company organized
in Hong Kong. As of the date of this annual report, Treasure Success owns 51% of the equity interests in J&B International Limited
("J&B"), a company with limited liability incorporated under the laws of Hong Kong. P. T. Eratex (Hong Kong) Limited ("Eratex"),
a company formed in Hong Kong, owns the remaining 49%. To date, Treasure Success also owns 51% of the equity interests in Jerash Newtech
(Hong Kong) Holdings Limited ("Jerash Newtech"), a company incorporated under the laws of Hong Kong with limited liability,
and Newtech Textile (HK) Limited, a company incorporated in Hong Kong ("Newtech"), owns the remaining 49%.

 This chart reflects our organizational structure as of the date of
this annual report:

 Jerash Garments was established in Jordan on November
26, 2000 and operates out of our factory in Al Tajamouat Industrial City, a Development Zone in Amman, Jordan. Jerash Garments'
principal activities are to house management offices and to operate production lines and printing, sewing, ironing, packing, and quality
control units, as well as house our trims and finished products warehouses. We also operate our factory in Al-Hasa County (as discussed
below) under Jerash Garments.

 Chinese Garments was established in Jordan on
June 13, 2013 and operates out of our factory in Al Tajamouat Industrial City. Chinese Garments' principal activities are to house
administration, human resources, finance, and management offices and to operate additional production lines and sewing, ironing, and packing
units, as well as house our trims warehouse.

 Jerash Embroidery was established in Jordan on
March 11, 2013 and operates out of our factory in Al Tajamouat Industrial City. Jerash Embroidery's principal activities are to
perform the cutting and embroidery for our products.

 Paramount was established in Jordan on October
24, 2004 and operates out of our factory in Al Tajamouat Industrial City. Paramount's principal activities are to manufacture garments
per customer orders.

 MK Garments was established in Jordan on January
23, 2003. On June 24, 2021, Jerash Garments and the sole shareholder of MK Garments entered into an agreement, pursuant to which Jerash
Garments acquired all of the outstanding stock of MK Garments. As of October 7, 2021, MK Garments became a subsidiary of Jerash Garments.
MK Garments operates out of our factory in Al Tajamouat Industrial City. MK Garments' principal activities are to manufacture garments
per customer orders. The new facilities are an existing garment manufacturing operation adjacent to Jerash's four largest manufacturing
centers. Jerash assumed ownership of all of the machinery and equipment owned by MK Garments through the acquisition.

 Treasure Success was established in Hong Kong
on July 5, 2016 and operates in Hong Kong. Treasure Success's primary activities are sales of garments and to employ sales and merchandising
staff and supporting personnel in Hong Kong to support the business of Jerash Garments and its subsidiaries.

 Jiangmen Treasure Success was established in Jiangmen
City of Guangdong Province in the PRC on August 28, 2019 and operates in the PRC. Jiangmen Treasure Success's primary activities
are to provide support in sales and marketing, sample development, merchandising, procurement, and other areas.

 Jerash The First was established in Jordan on
July 6, 2020 and operate out of our factory in Al-Hasa County. Jerash The First's principal activities are to manufacture and trade
personal protective equipment ("PPE") products.

 Jerash Supplies was formed in Delaware on November
20, 2020. Jerash Supplies is engaged in the trading of PPE products.

 Kawkab Venus was established in Amman, Jordan,
on January 15, 2015 with a declared capital of JOD 50,000. It holds land with factory premises, which are leased to MK Garments. On July
14, 2021, Jerash Garments and the sole shareholder of Kawkab Venus entered into an agreement, pursuant to which Jerash Garments acquired
all of the outstanding stock of Kawkab Venus. Apart from the land and factory premises, Kawkab Venus had no other significant assets or
liabilities and no operation activities or employees at the time of acquisition, so the acquisition was accounted for an asset acquisition.
As of August 21, 2022, Kawkab Venus became a subsidiary of Jerash Garments.

 Ever Winland was organized in Hong Kong on December
3, 2020. It holds office premises, which are leased to Treasure Success. On June 22, 2022, Treasure Success and the shareholders of Ever
Winland entered into an agreement, pursuant to which Treasure Success acquired all of the outstanding stock of Ever Winland. Apart from
the office premises used by Treasure Success, Ever Winland had no other significant assets or liabilities and no operating activities
or employees at the time of this acquisition, so this transaction was accounted for as an asset acquisition. As of August 29, 2022, Ever
Winland became a subsidiary of Treasure Success.

 J&B is a joint venture company established
in Hong Kong on January 10, 2023. On March 20, 2023, Treasure Success and Eratex entered into a Joint Venture and Shareholders'
Agreement, pursuant to which Treasure Success acquired 51% of the equity interests in J&B on April 11, 2023. J&B engages in the
business of garment trading and manufacturing for orders from customers.

 Jerash Newtech is a joint venture company established
in Hong Kong on November 3, 2023. On October 10, 2023, Treasure Success and Newtech entered into a Joint Venture and Shareholders'
Agreement. Pursuant to this agreement, both parties agreed to form a joint venture company in Hong Kong named Jerash Newtech, of which
Treasure Success holds 51% of the equity interests and Newtech holds 49%. Jerash Newtech engages in the business of supplying fiber and
fabric printed with Cooltrans technology, and may engage any other businesses in the future as both parties shall agree from time to time.

 Products

 As a garment manufacturing group, we specialize
in manufacturing sportswear and outerwear. Our sportswear and outerwear product offering consists of jackets, polo shirts, t-shirts, pants,
and shorts. During fiscal 2025, our primary product offering was crew neck shirts, which accounted for approximately 37% of our total
shipped pieces. Our primary product offering in the fiscal year ended March 31, 2024 was shorts, pants, and vests, which accounted for
approximately 37% of our total shipped pieces.

 Manufacturing and Production

 Our production facilities are located in Al Tajamouat
Industrial City and in Al-Hasa County in the Tafilah Governorate of Jordan.

 Our production facilities in Al Tajamouat Industrial
City comprise five factories and four warehouses. Effective as of January 1, 2019, the government of the Hashemite Kingdom of Jordan converted
Al Tajamouat Industrial City into a Development Zone. Following this change, we continued to operate under benefits similar to the Qualifying
Industrial Zone designation, but were subject to a 10% corporate income tax plus a 1% social contribution. Starting from January 1, 2020,
the corporate income tax rate increased to 14% plus a 1% social contribution. On January 1, 2021, the corporate income tax rate increased
to 16% plus a 1% social contribution. On January 1, 2022, the corporate income tax rate increased to 18% or 20% plus a 1% social contribution.
On January 1, 2023, the corporate income tax rate increased to 19% or 20% plus a 1% social contribution. Effective January 1, 2024, we
have been subject to a 20% corporate income tax rate plus a 1% social contribution. Currently, the first factory, which we own, employs
approximately 1,500 people. Its primary functions are to house our management offices, as well as production lines, trims warehouse, and
printing, sewing, ironing, and packaging units. The second factory, which we lease, employs approximately 1,650 people. Its primary function
is to house our administrative and human resources personnel, merchandising and accounting departments, embroidery, printing, additional
production lines, trims and finished products warehouses, and sewing, ironing, packing and quality control units. The third factory, which
we lease, employs approximately 200 people. Its primary functions are to perform the cutting for our products. The fourth factory (under
Paramount), which we lease, currently employs approximately 1,300 people. Its primary functions are to house additional production lines.
The fifth factory (under MK Garments) currently employs approximately 650 people. Its primary function is to manufacture garments for
orders from customers.

 Our production facility in Al-Hasa County in the
Tafilah Governorate of Jordan comprises a factory, which currently employs approximately 500 people and its primary functions are to manufacture
garment products per customer orders. We commenced the construction of this factory in 2018 and we started operations in November 2019.
This is a joint project with the Jordanian Ministry of Labor and the Jordanian Education and Training Department. According to our agreement
with these government agencies, we used this factory without paying rent through December 2022. We have continued to use the factory without
paying rent since January 2023 as new arrangements with the Jordanian Ministry of Labor are still being made. See "Item 2. Properties"
below for more information regarding this factory.

 In April 2021, we commenced construction on a
195,000-square-foot housing facility for our multi-national workforce, situated on a 49,000-square-foot site owned by us, in Al Tajamouat
Industrial City. In fiscal 2025, the construction completed and our workers have moved in. To meet increasing demand, we are also finalizing
plans to construct an additional project on a nearby 133,000-square-foot parcel that we purchased in 2019 for $1.2 million. Two-thirds
of the land will be used for our seventh factory and the remaining one-third will be used for housing. As of the date of this annual report,
we are working with engineering consultants on the architectural design of the building, taking into account the potential business growth
bought about by the new business collaboration with Busana Apparel Group. We will carefully plan the construction investment to meet the
progress of business developments.

 Total annual capacity at our existing facilities was approximately
24 million pieces (average for product categories including t-shirts, polo shirts, pants, shorts, and jackets) as of March 31, 2025. Our
production flow begins in the cutting department of our factory. Then the product is sent to the embroidery department for embroidery
if applicable. From there, the product moves to be processed by the sewing unit, finishing department, quality control, and finally the
ironing and packing units.

 We do not have long-term supply contracts or arrangements
with our suppliers. Most of our ultimate suppliers for raw materials, such as fabric, zippers, and labels, are designated by customers
and we purchase such materials on a purchase order basis.

 Employees

 As of March 31, 2025, we had an aggregate of approximately
6,000 employees located in Jordan, Hong Kong, China, and the United States of America, all of which are full-time employees.

 Customers

 The following table outlines the dollar amount
and percentage of total sales to our customers for the fiscal years ended March 31, 2025 ("fiscal 2025") and March 31, 2024
("fiscal 2024").

 Fiscal 2025

 Fiscal 2024

 Sales

 Sales

 (USD, in
 thousands)

 %

 (USD, in
 thousands)

 %

 VF Corporation (1)

 $
 94,151

 64.6
 %

 $
 78,912

 67.3
 %

 New Balance

 17,872

 12.2
 %

 13,931

 11.9
 %

 Suzhou Unitex

 5,696

 3.9
 %

 0.8
 %

 SWC Inc.

 5,049

 3.5
 %

 0.6
 %

 Tharanco

 4,673

 3.2
 %

 0.2
 %

 Hugo Boss

 4,018

 2.8
 %

 2,920

 2.5
 %

 G-III

 2,352

 1.6
 %

 5,773

 4.9
 %

 Others

 12,001

 8.2
 %

 13,820

 11.8
 %

 Total

 $
 145,812

 100.0
 %

 $
 117,187

 100.0
 %

 (1)

 A large portion of our products are sold under The North Face, Timberland, and Vans brands owned by VF Corporation.

 In fiscal 2025 and 2024, we depended on a few
key customers for our sales, and a large portion of our sales in fiscal 2025 and 2024 were to one customer, VF Corporation.

 We started producing garments for VF Corporation
in 2012. A large portion of the products we manufacture are sold under The North Face, Timberland, and Vans brands which are owned by
VF Corporation. Currently, we manufacture primarily outerwear for The North Face. Approximately 65% and 67% of our sales in fiscal 2025
and 2024 were derived from the sale of manufactured products to VF Corporation, respectively. We are not party to any long-term contracts
with VF Corporation or our other customers, and our sales arrangements with our customers do not have minimum purchase requirements. As
is common in our industry, VF Corporation and our other customers place purchase orders with us after we complete detailed sample development
and approval processes that we and our customers have agreed upon for their purchase of the relevant manufactured garments. It is through
the sample development and approval processes that we and VF Corporation and our other customers agree on the purchase and manufacture
of the garments. For fiscal 2025, VF Corporation issued approximately 14,700 purchase orders to us in amounts ranging from approximately
$6 to $929,000. For fiscal 2024, VF Corporation issued approximately 3,400 purchase orders to us in amounts ranging from approximately
$7 to $268,000.

 Our customers are in the retail industry, which
is subject to substantial cyclical variations. Consequently, there can be no assurance that sales to current customers will continue at
the current rate or at all. In addition, our annual and quarterly results may vary, which may cause our profits and the market price of
our common stock to decline.

 We continue to seek to expand and strengthen our
relationship with our current customers and other brand names. However, we cannot assure you that these brands will continue to buy our
products in the same volumes or on the same terms as they did in the past or that we will be successful in expanding our relationship
with other brand names.

 Competition

 The markets for the manufacturing of sportswear
and outerwear are highly competitive. The competition in those markets is focused primarily on the price and quality of the product and
the level of customer service. Our products compete with products of other apparel manufacturers in Asia, Israel, Europe, the United States,
and South and Central America.

 Competition with other manufacturers in the clothing
industry focuses on reducing production costs, reducing supply lead time, design, product quality, and efficiency of supply to the customer.
Since production costs depend to a large extent on labor costs, in recent years most production in the industry has been moved to countries
where labor costs are low. Some of our competitors have lower cost bases, longer operating histories, larger customer bases, and other
advantages over us which allow them to compete with us. As described in more detail under "—Conditions in Jordan—Trade
Agreements" below, we were able to sell our products manufactured at our facilities in Jordan to the United States free from customs
duties and import quotas under certain conditions prior to April 5, 2025. These favorable terms enabled us to remain competitive on the
basis of price. Effective from April 5, 2025, the U.S. imposed a baseline tariff of 10% on imports from almost all countries, including
Jordan. Then, effective from April 9, 2025, it had announced "reciprocal" tariffs of imports from specified countries, amongst
them Jordan with a prevailing rate of then 20%. These "reciprocal" tariffs are postponed for 90 days, whilst the 10% baseline
tariff persists. Up to the date of this annual report, the 90 days postponement of the "reciprocal" tariff has not expired.

 According to the Association Agreement between
the European Union (the "EU") and Jordan, which came into force in May 2002, and the joint initiative on rules of origin reviewed
and improved in December 2018 by the EU and Jordan, goods manufactured by us in Jordan that are subsequently shipped to EU countries are
shipped free from customs duties.

 Conditions in Jordan

 Our manufacturing facilities are located in Jordan.
Accordingly, we are directly affected by political, security, and economic conditions in Jordan.

 From time to time, Jordan has experienced instances
of civil unrest, terrorism, and hostilities among neighboring countries, including Syria and Israel. A peace agreement between Israel
and Jordan was signed in 1994. Terrorist attacks, military activity, rioting, or civil or political unrest in the future could influence
the Jordanian economy and our operations by disrupting operations and communications and making travel within Jordan more difficult and
less desirable. Political or social tensions also could create a greater perception that investments in companies with Jordanian operations
involve a high degree of risk, which could adversely affect the market and price for our common stock. Furthermore, the escalation of
conflicts such as Russia-Ukraine, Israel-Hamas, and Israel-Iran, as well as Houthi rebel attacks on commercial vessels in the Red Sea,
may increase geopolitical tensions globally. These political or social tensions could disrupt international trade, industrial supply chains,
and transportation, leading to market price volatility, and may adversely affect our business, increase operational costs, and limit our
ability to secure foreign financing for our operations and capital expenditures. See "Item 1A. Risk Factors—Risks Related
to Operations in Jordan—Our operations in Jordan may be adversely affected by social and political uncertainties or change, military
actions, health-related risks, acts of terrorism or other geopolitical instability."

 Jordan is a constitutional monarchy, but the King
holds wide executive and legislative powers. The ruling family has taken initiatives that support the economic growth of the country.
However, there is no assurance that such initiatives will be successful or will continue. The rate of economic liberalization could change,
and specific laws and policies affecting manufacturing companies, foreign investments, currency exchange rates, and other matters affecting
investments in Jordan could change as well.

 Trade Agreements

 Because of the Association Agreement between the
EU and Jordan, which came into force in May 2002, we are able to sell our products manufactured at our facilities in Jordan to EU countries
free from customs duties.

 Because of the United States-Jordan Free Trade
Agreement, which came into force on December 17, 2001, and was implemented fully on January 1, 2010, we were able to sell our products
manufactured at our facilities in Jordan to the U.S. free from customs duties and import quotas under certain conditions prior to April
5, 2025.

 Effective from April 5, 2025, the U.S. imposed a baseline tariff of
10% on imports from almost all countries, including Jordan. Then, effective from April 9, 2025, it had announced "reciprocal"
tariffs of imports from specified countries, amongst them Jordan with a prevailing rate of then 20%. These "reciprocal" tariffs
are postponed for 90 days, whilst the 10% baseline tariff persists. Up to the date of this annual report, the 90 day postponement of the
"reciprocal" tariff has not expired.

 Income/Sales Tax Incentives

 Effective January 1, 2019, Jordan's government
converted the geographical area where Jerash Garments and its subsidiaries are located from a Free Zone to a Development Zone. Development
Zones are industrial parks that house manufacturing operations in Jordan. In accordance with applicable law, Jerash Garments and its subsidiaries
were subject to corporate income tax in Jordan at a rate of 19% or 20% plus a 1% social contribution between January 1, 2023 to December
31, 2023. Effective January 1, 2024, the income tax rate increased to 20%, plus a 1% social contribution. For more information, see "Note
2—Summary of Significant Accounting Policies—Income and Sales Taxes."

 In addition, Jerash Garments and its subsidiaries
are subject to local sales tax of 16% on purchases. However, Jerash Garments was granted a sales tax exemption from the Jordanian Investment
Commission for the period June 1, 2015 to June 1, 2018 that allowed Jerash Garments to make purchases with no sales tax charge. This exemption
was extended to February 5, 2026.

 Government Regulation

 Our manufacturing and other facilities in Jordan
and our subsidiaries outside of Jordan are subject to various local regulations relating to the maintenance of safe working conditions
and manufacturing practices. Management believes that we are currently in compliance in all material respects with all such regulations.
We are not subject to governmental approval of our products or manufacturing process.

 Item 1A. Risk Factors.

 The following are factors that could have a significant
impact on our operations and financial results and could cause actual results or outcomes to differ materially from those discussed in
any forward-looking statements.

 Risks Related to Our Business and Our Industry

 We rely on one key customer for a large
portion of our revenue. We cannot assure you that this customer or any other customer will continue to buy our products in the same volumes
or on the same terms.

 Our sales to VF Corporation (which owns brands
such as The North Face, Timberland, and Vans), directly and indirectly, accounted for approximately 65% and 67% of our total sales in
fiscal 2025 and 2024, respectively. From an accounting perspective, we are considered the principal in our arrangement with VF Corporation.
We bear the inventory risk before the specified goods are transferred to a customer, and we have the right to determine the price and
to change our product during the sample development process with customers in which we determine factors including material usage and
manufacturing costs before confirming orders. Therefore, we present the sales and related manufacturing activities on a gross basis.

 We are not party to any long-term contracts with
VF Corporation or our other customers, and our sales arrangements with our customers do not have minimum purchase requirements. As is
common in our industry, VF Corporation and our other customers place purchase orders with us after we complete detailed sample development
and approval processes. It is through these sample development and approval processes that we and VF Corporation agree on the purchase
and manufacture of the garments in question. In fiscal 2024, VF Corporation issued approximately 3,400 purchase orders to us in amounts
ranging from approximately $7 to $268,000. In fiscal 2025, VF Corporation issued approximately 14,700 purchase orders to us in amounts
ranging from approximately $6 to $929,000.

 We cannot assure you that our customers will continue
to buy our products at all or in the same volumes or on the same terms as they have in the past. The failure of VF Corporation to continue
to buy our products in the same volumes and on the same terms as in the past may significantly reduce our sales and our earnings.

 A material decrease in the quantity of sales made
to our principal customers, a material adverse change in the terms of such sales or a material adverse change in the financial condition
of our principal customers could significantly reduce our sales and our earnings.

 We cannot assure you that VF Corporation will
continue to purchase our merchandise at the same historical rate, or at all, in the future, or that we will be able to attract new customers.
In addition, because of our reliance on VF Corporation as our key customer and their bargaining power with us, VF Corporation has the
ability to exert significant control over our business decisions, including prices.

 Any adverse change in our relationship with
VF Corporation and its owned brands, or with their strategies or reputation, would have a material adverse effect on our results of operations.

 A large portion of our products are sold under
The North Face, Timberland, and Vans brands, which are owned by VF Corporation. Any adverse change in our relationship with VF Corporation
would have a material adverse effect on our results of operations. In addition, our sales of those products could be materially and adversely
affected if the image, reputation, or popularity of either VF Corporation, The North Face, Timberland, or Vans were to be negatively impacted.

 If we lose our key customer and are unable
to attract new customers, then our business, results of operations, and financial condition would be adversely affected.

 If our key customer, VF Corporation, fails to
purchase our merchandise at the same historical rate, or at all, we will need to attract new customers and we cannot assure you that we
will be able to do so. We do not currently invest significant resources in marketing our products, and we cannot assure you that any new
investments in sales and marketing will lead to the acquisition of additional customers or increased sales or profitability consistent
with prior periods. If we are unable to attract new customers or customers that generate comparable profit margins to VF Corporation,
then our results of operations and financial condition could be materially and adversely affected.

 If we lose our larger brand name customers,
or the customers fail to purchase our products at anticipated levels, our sales and operating results will be adversely affected.

 Our results of operations depend to a significant
extent upon the commercial success of our larger brand name customers. If we lose these customers, these customers fail to purchase our
products at anticipated levels, or our relationships with these customers or the brands and retailers they serve diminishes, it may have
an adverse effect on our results and we may lose a primary source of revenue. In addition, we may not be able to recoup development and
inventory costs associated with these customers and we may not be able to collect our receivables from them, which would negatively impact
our financial condition and results of operations.

 If the market share of our customers declines,
our sales and earnings may decline.

 Our sales can be adversely affected in the event
that our direct and indirect customers do not successfully compete in the markets in which they operate. In the event that the sales of
one of our major customers decline for any reason, regardless of whether it is related to us or to our products, our sales to that customer
may also decline, which could reduce our overall sales and our earnings.

 A natural disaster, catastrophe, pandemic,
or other unexpected events could adversely affect our financial conditions and business operations.

 The occurrence of one or more unexpected events,
including war, acts of terrorism or violence, civil unrest, epidemics or pandemics, fires, tornadoes, hurricanes, earthquakes, floods,
and other forms of severe weather in the countries or regions in which we do business could adversely affect our operations and financial
performance.

 We may require additional financing to fund
our operations and capital expenditures.

 As of March 31, 2025, we had cash of approximately
$13.3 million and restricted cash of approximately $1.7 million. There can be no assurance that our available cash, together with resources
from our operations, will be sufficient to fund our operations and capital expenditures. In addition, our cash position may decline in
the future, and we may not be successful in maintaining an adequate level of cash resources.

 Pursuant to the DBS Bank (Hong Kong) Limited ("DBSHK")
facility letter dated January 12, 2022, DBSHK provided a bank facility of up to $5.0 million to Treasure Success, which was amended pursuant
to a facility letter dated January 4, 2024. Pursuant to the amended agreement, DBSHK agreed to finance cargo receipt, trust receipt, account
payable financing, and certain type of import and export invoice financing up to an aggregate of $5.0 million, with certain financial
covenants. The DBSHK facility bears interest at 1.5% per annum over Hong Kong Interbank Offered Rate ("HIBOR") for Hong Kong
dollar ("HKD") bills and 1.1% to 1.3% per annum over DBSHK's cost of funds for foreign currency bills. The facility
is guaranteed by Jerash Holdings and became available to the Company on June 17, 2022.

 In addition, we may be required to seek additional
debt or equity financing in order to support our growing operations. We may not be able to obtain additional financing on satisfactory
terms, or at all, and any new equity financing could have a substantial dilutive effect on our existing stockholders. If we cannot obtain
additional financing, we may not be able to achieve our desired sales growth, and our results of operations would be negatively affected.

 We may have conflicts of interest with our
affiliates and related parties, and in the past we have engaged in transactions and entered into agreements with affiliates that were
not negotiated at arms' length.

 We have engaged, and may in the future engage,
in transactions with affiliates and other related parties. These transactions may not have been, and may not be, on terms as favorable
to us as they could have been if obtained from non-affiliated persons. While an effort has been made and will continue to be made to obtain
services from affiliated persons and other related parties at rates and on terms as favorable as would be charged by others, there will
always be an inherent conflict of interest between our interests and those of our affiliates and related parties. Through his wholly owned
entity Merlotte Enterprise Limited, Mr. Choi, our chairman, chief executive officer, president, treasurer, and a significant stockholder,
has an indirect ownership interest in Jiangmen V-Apparel Manufacturing Limited, with which we have entered into, or in the future may
enter into, agreements or arrangements. See also "Note 11—Related Party Transactions." If we engage in related party
transactions on unfavorable terms, our operating results will be negatively impacted.

 We are dependent on a product segment comprised
of a limited number of products.

 Presently, we generate revenue primarily from
manufacturing and exporting sportswear and outerwear. A shift in demand from such products may reduce the growth of new business for our
products, and reduce existing business in those products. If demand in sportswear and outerwear were to decline, we may endeavor to expand
or transition our product offerings to other segments of the clothing retail industry. There can be no assurance that we would be able
to successfully make such an expansion or transition, or that our sales and margins would not decline in the event we made such an expansion
or transition.

 Our revenue and cash requirements are affected
by the seasonal nature of our business.

 A significant portion of our revenue is received
during the first six months of our fiscal year, or from April through September. A majority of our VF Corporation orders are derived from
winter season fashions, the sales of which occur in the spring and summer and are merchandized by VF Corporation during the autumn months
(September through November). As such, the second half of our fiscal year traditionally reflect lower sales in anticipation of the spring
and summer seasons. In addition, due to the nature of our relationships with customers and our use of purchase orders to conduct our business,
our revenue may vary from period to period.

 Changes in our product mix and the geographic
destination of our products or source of our supplies may impact our cost of goods sold, net income, and financial position.

 From time to time, we experience changes in the
product mix and the geographic destination of our products. To the extent our product mix shifts from higher revenue items, such as jackets,
to lower revenue items, such as pants, our cost of goods sold as a percentage of gross revenue will likely increase. In addition, if we
sell a higher proportion of products in geographic regions where we do not benefit from free trade agreements or tax exemptions, our gross
margins will fall. If we are unable to sustain consistent product mix and geographic destinations for our products, we could experience
negative impacts to our financial condition and results of operations.

 Our direct and indirect customers are in
the clothing retail industry, which is subject to substantial cyclical variations and could have a material adverse effect on our results
of operations.

 Our direct and indirect customers are in the clothing
retail industry, which is subject to substantial cyclical variations and is strongly affected by any downturn or slowdown in the general
economy. Factors in the clothing retail industry that may influence our operating results from quarter to quarter include:

 the volume and timing of customer orders we receive during the quarter;

 the timing and magnitude of our customers' marketing campaigns;

 the loss or addition of a major customer or of a major retailer nomination;

 the availability and pricing of materials for our products;

 the increased expenses incurred in connection with introducing new products;

 currency fluctuations;

 political factors that may affect the expected flow of commerce; and

 delays caused by third parties.

 In addition, uncertainty over future economic
prospects could have a material adverse effect on our results of operations. Many factors affect the level of consumer spending in the
clothing retail industry, including, among others:

 general business conditions;

 interest rates;

 the availability of consumer credit;

 taxation; and

 consumer confidence in future economic conditions.

 Consumer purchases of discretionary items, including
our products, may decline during recessionary periods and also may decline at other times when disposable income is lower. Consequently,
our customers may have larger inventories of our products than expected, and to compensate for any downturn they may reduce the size of
their orders, change the payment terms, limit their purchases to a lower price range, and try to change their purchase terms, all of which
may have a material adverse effect on our financial condition and results of operations.

 The clothing retail industry is subject
to changes in fashion preferences. If our customers misjudge a fashion trend or the price which consumers are willing to pay for our products
decreases, our revenue could be adversely affected.

 The clothing retail industry is subject to changes
in fashion preferences. We design and manufacture products based on our customers' judgment as to what products will appeal to consumers
and what price consumers would be willing to pay for our products. Our customers may not be successful in accurately anticipating consumer
preferences and the prices that consumers would be willing to pay for our products. Our revenue will be reduced if our customers are not
successful, particularly if our customers reduce the volume of their purchases from us or require us to reduce the prices at which we
sell our products.

 If we experience product quality or late
delivery problems, or if we experience financial problems, our business will be negatively affected.

 We may from time to time experience difficulties
in making timely delivery of products of acceptable quality. Such difficulties may result in cancellation of orders, customer refusal
to accept deliveries, or reductions in purchase prices, any of which could have a material adverse effect on our financial condition and
results of operations. There can be no assurance that we will not experience difficulties with manufacturing our products.

 We face intense competition in the worldwide
apparel manufacturing industry.

 We compete directly with a number of manufacturers
of sportswear and outerwear. Some of these manufacturers have lower cost bases, longer operating histories, larger customer bases, greater
geographical proximity to customers, or greater financial and marketing resources than we do. Increased competition, direct or indirect,
could reduce our revenue and profitability through pricing pressure, loss of market share, and other factors. We cannot assure you that
we will be able to compete successfully with existing or new competitors, as the market for our products evolves and the level of competition
increases. We believe that our business will depend upon our ability to provide apparel products of good quality and meeting our customers'
pricing and delivery requirements, and our ability to maintain relationships with our major customers. There can be no assurance that
we will be successful in this regard.

 We have entered into joint ventures with
third parties, and we may continue to do so in the future. This may subject us to various risks, including limited decision-making authority,
reliance on our joint venture partners' financial condition, the risk of disputes with our joint venture partners, and the risk
of failing to achieve profitability through such business.

 As of the date of this annual report, we have
entered into two joint ventures with third parties. Please refer to "Item 1. Business—Organizational structure" for
more information. Once we enter into any joint ventures, we will have limited decision-making authority and we may face the risk of disputes
with our joint venture partners. This includes potential deadlocks in making major decisions and restrictions on our ability to exit the
joint venture. Any disputes that arise between us and any of our joint venture partners may result in litigation or arbitration. We may
also face risks associated with the financial condition of our joint venture partners, including the risk of bankruptcy and/or failure
to fund their share of required capital contributions. As a result, we may be exposed to liabilities that exceed our share of any joint
venture. Our joint venture partners may also have business interests or goals that are inconsistent with ours and may be able to take
actions contrary to our policies or objectives. In specific circumstances, we may be liable for the actions of any joint venture partners.
Any of these situations may have a material adverse effect on our business, financial condition, and results of operations.

 Furthermore, we cannot assure that we may succeed
in doing business through these two joint ventures or any future joint ventures. If the two joint ventures do not achieve expected levels
of production or profitability, we will not be able to adequately manage our growth following the establishment of such business, and
our results of operations and financial condition would be adversely affected.

 Our results of operations are subject to fluctuations in currency
exchange rates.

 Exchange rate fluctuations between the U.S. dollar
and Jordanian Dinar ("JOD"), Hong Kong dollar, or Chinese Yuan ("CNY"), as well as inflation in Jordan, Hong Kong,
or the PRC, may negatively affect our earnings. A substantial majority of our revenue and a substantial portion of our expenses are denominated
in U.S. dollars. However, a significant portion of the expenses associated with our Jordanian, Hong Kong, or PRC operations, including
personnel and facilities-related expenses, are incurred in JOD, HKD, or CNY, respectively. Consequently, inflation in Jordan, Hong Kong,
or the PRC will have the effect of increasing the dollar cost of our operations in Jordan, Hong Kong, or the PRC, respectively, unless
it is offset on a timely basis by a devaluation of JOD, HKD, or CNY, as applicable, relative to the U.S. dollar. We cannot predict any
future trends in the rate of inflation in Jordan, Hong Kong, or the PRC or the rate of devaluation of JOD, HKD, or CNY, as applicable,
against the U.S. dollar. In addition, we are exposed to the risk of fluctuation in the value of JOD, HKD, CNY vis-a-vis the U.S. dollar.
There can be no assurance that JOD or HKD will remain effectively pegged to the U.S. dollar. Any significant appreciation of JOD, HKD,
or CNY against the U.S. dollar would cause an increase in our JOD, HKD, or CNY expenses, as applicable, as recorded in our U.S. dollar
denominated financial reports, even though the expenses denominated in JOD, HKD, or CNY, as applicable, will remain unchanged. In addition,
exchange rate fluctuations in currency exchange rates in countries other than Jordan where we operate and do business may also negatively
affect our earnings.

 We are subject to the risks of doing business
abroad.

 Almost all of our products are manufactured outside
the United States, at our subsidiaries' production facilities in Jordan. Foreign manufacturing is subject to a number of risks,
including work stoppages, transportation delays and interruptions, political instability, foreign currency fluctuations, economic disruptions,
expropriation, nationalization, the imposition of tariffs and import and export controls, changes in governmental policies (including
U.S. policies towards Jordan), and other factors, which could have an adverse effect on our business. In addition, we may be subject to
risks associated with the availability of and time required for the transportation of products from foreign countries. The occurrence
of certain of these factors may delay or prevent the delivery of goods ordered by customers, and such delay or inability to meet delivery
requirements would have a severe adverse impact on our results of operations and could have an adverse effect on our relationships with
our customers.

 Our ability to benefit from the lower labor costs
in Jordan will depend on the political, social, and economic stability of Jordan and in the Middle East in general. We cannot assure you
that the political, economic, or social situation in Jordan or in the Middle East in general will not have a material adverse effect on
our operations, especially in light of the potential for hostilities in the Middle East. See "—Risks Related to Operations
in Jordan—Our operations in Jordan may be adversely affected by social and political uncertainties or change, military actions,
health-related risks, acts of terrorism or other geopolitical instability." The success of the production facilities also will depend
on the quality of the workmanship of laborers and our ability to maintain good relations with such laborers in these countries. We cannot
guarantee that our operations in Jordan or any new locations outside of Jordan will be cost-efficient or successful.

 Our business could suffer if we violate
labor laws or fail to conform to generally accepted labor standards or the ethical standards of our customers.

 We are subject to labor laws issued by the Jordanian
Ministry of Labor for our facilities in Jordan. In addition, many of our customers require their manufacturing suppliers to meet their
standards for working conditions and other matters. If we violate applicable labor laws or generally accepted labor standards or the ethical
standards of our customers by, for example, using forced or indentured labor or child labor, failing to pay compensation in accordance
with local law, failing to operate our factories in compliance with local safety regulations, or diverging from other labor practices
generally accepted as ethical, we could suffer a loss of sales or customers. In addition, such actions could result in negative publicity
and may damage our reputation and discourage retail customers and consumers from buying our products.

 Our products may not comply with various
industry and governmental regulations and our customers may incur losses in their products or operations as a consequence of our non-compliance.

 Our products are produced under strict supervision
and controls to ensure that all materials and manufacturing processes comply with the industry and governmental regulations governing
the markets in which these products are sold. However, if our controls fail to detect or prevent non-compliant materials from entering
the manufacturing process, our products could cause damages to our customers' products or processes and could also result in fines
being incurred. The possible damages, replacement costs, and fines could significantly exceed the value of our products and these risks
may not be covered by our insurance policies.

 We depend on our suppliers for machinery
and maintenance of machinery. We may experience delays or additional costs satisfying our production requirements due to our reliance
on these suppliers.

 We purchase machinery and equipment used in our
manufacturing process from third-party suppliers. If our suppliers are not able to provide us with maintenance or additional machinery
or equipment as needed, we might not be able to maintain or increase our production to meet any demand for our products, which would negatively
impact our financial condition and results of operations.

 We are a holding company and rely on dividends,
distributions, and other payments, advances, and transfers of funds from our subsidiaries to meet our obligations.

 We are a holding company that does not conduct
any business operations of our own. As a result, we rely on cash dividends and distributions and other transfers from our operating subsidiaries
to meet our obligations. The deterioration of income from, or other available assets of, our operating subsidiaries for any reason could
limit or impair their ability to pay dividends or other distributions to us, which in turn could adversely affect our financial condition
and results of operations.

 Periods of sustained economic adversity
and uncertainty could negatively affect our business, results of operations, and financial condition.

 Disruptions in the financial markets, such as
what occurred in the global markets in 2008, may adversely impact the availability and cost of credit for our customers and prospective
customers, which could result in the delay or cancellation of customer purchases. In addition, disruptions in the financial markets may
have an adverse impact on regional and world economies and credit markets, which could negatively impact the availability and cost of
capital for us and our customers. These conditions may reduce the willingness or ability of our customers and prospective customers to
commit funds to purchase our services or products, or their ability to pay for our services after purchase. These conditions could result
in bankruptcy or insolvency for some customers, which would impact our revenue and cash collections. These conditions could also result
in pricing pressure and less favorable financial terms to us and our ability to access capital to fund our operations.

 Risks Related to Operations in Jordan

 We are affected by conditions to, and possible
reduction of, free trade agreements.

 Because of the Association Agreement between the
EU and Jordan, we are able to sell our products manufactured at our facilities in Jordan to EU countries free from customs duties. If
there is a change in such benefits or if such agreement were terminated, our profitability may be reduced.

 Because of the United States-Jordan Free Trade
Agreement, we were able to sell our products manufactured at our facilities in Jordan to the U.S. free from customs duties and import
quotas under certain conditions prior to April 2025.

 Effective from April 5, 2025, the U.S. imposed
a baseline tariff of 10% on imports from almost all countries, including Jordan. Then, effective from April 9, 2025, it had announced
"reciprocal" tariffs of imports from specified countries, amongst them Jordan with a prevailing rate of then 20%. These "reciprocal"
tariffs are postponed for 90 days, whilst the 10% baseline tariff persists. Up to the date of this annual report, the 90 days postponement
of the "reciprocal" tariff has not expired.

 It remains unclear what specifically President
Trump would or would not do with respect to trade agreements, tariffs, and duties relating to products manufactured in Jordan during his
current term. If President Trump takes action or publicly speaks out about the need to terminate or re-negotiate existing free trade agreements
on which we rely, or in favor of restricting free trade or increasing tariffs and duties applicable to our products, such actions may
adversely affect our sales and have a material adverse impact on our business, results of operations, and cash flows.

 Our results of operations would be materially
and adversely affected in the event we are unable to operate our principal production facilities in Jordan.

 All of our manufacturing process is performed
in a complex of production facilities located in Jordan. We have no effective back-up for these operations and, in the event that we are
unable to use the production facilities located in Jordan as a result of damage or for any other reason, our ability to manufacture a
major portion of our products and our relationships with customers could be significantly impaired, which would materially and adversely
affect our results of operation.

 Our operations in Jordan may be adversely
affected by social and political uncertainties or change, military actions, health-related risks, acts of terrorism, or other geopolitical
instability.

 From time to time, Jordan has experienced instances
of civil unrest, terrorism, and hostilities among neighboring countries, including Syria and Israel. A peace agreement between Israel
and Jordan was signed in 1994. Terrorist attacks, military activity, rioting, or civil or political unrest in the future could influence
the Jordanian economy and our operations by disrupting operations and communications and making travel within Jordan more difficult and
less desirable. In late May 2018, protests about a proposed tax bill began throughout Jordan. On June 5, 2018, King Abdullah II of Jordan
responded to the protests by removing and replacing Jordan's prime minister. If political uncertainty rises in Jordan, our business,
financial condition, results of operations, and cash flows may be negatively impacted.

 Political or social tensions also could create
a greater perception that investments in companies with Jordanian operations involve a high degree of risk, which could adversely affect
the market price of our common stock. We do not have insurance for losses and interruptions caused by terrorist attacks, military conflicts,
and wars, which could subject us to significant financial losses. The realization of any of these risks could cause a material adverse
effect on our business, financial condition, results of operations, and cash flows.

 Furthermore, global markets have recently experienced
volatility and disruption following the escalation of geopolitical tensions, including the military conflict between Russia and Ukraine
and the conflict in the Middle East. Specifically, Russian military forces initiated a full-scale invasion of Ukraine on February 24,
2022, leading to sustained conflict and disruption. See "—Risk Factors Relating to our Securities—We are currently operating
in a period of economic uncertainty and capital market disruption, which has been significantly impacted by geopolitical instability due
to the ongoing military conflict between Russia and Ukraine and the confrontations in the Middle East, including conflicts between Israel
and Hamas, and between Iran and Israel. Our business, financial condition, and results of operations could be materially adversely affected
by any negative impact on the global economy and capital markets resulting from the conflict in Ukraine or any other geopolitical tensions."
Additionally, on October 7, 2023, Hamas militants and members of other terrorist organizations infiltrated Israel's southern border
from the Gaza Strip and conducted a series of terror attacks on civilian and military targets, leading to a declaration of war by Israel.
Subsequently, there have been disruptions in the region. The intensity and duration of the current Israel-Hamas war and the larger regional
conflict are difficult to predict, as are the economic implications on our business and operations, the global supply chain, and global
geopolitical stability.

 Since November 2023, Yemen's Iran-backed
Houthi Rebels have intensified attacks on commercial vessels in the Red Sea, targeting ships from over 40 nations, including Jordan. The
Red Sea turmoil has led to higher logistic costs for us to import raw material. Furthermore, we have incurred extra production costs to
adhere to customers' delivery schedules and mitigate the impact of delayed arrivals of raw materials caused by the aforementioned
logistic disruption. If these attacks continue or escalate, we may be forced to reroute shipments around the Cape of Good Hope, which
will result in higher shipping costs and delays. Additionally, these disruptions could lead to increased shipping insurance premiums and
elevated global fuel prices, which will further drive up our transportation expenses.

 Since June 2025, the conflict between Israel and
Iran has escalated. These direct military engagements, proxy activities, and broader regional tensions could have significant adverse
effects on Jordan's political and economic environment, and consequently, on our business operations. Further intensification of
the conflict could result in regional economic instability, potentially disrupting trade routes, supply chains, and cross-border commerce.
Heightened military activity could also create security risks for our facilities, employees, and customers, potentially leading to business
interruptions, increased operating costs, or damage to physical assets. In response to regional threats, the government of Jordan may
implement new regulations, restrictions, or emergency measures, which could affect our ability to conduct business as usual.

 While we do not have any employees, staff, consultants,
operations, materials, or equipment located in Israel, Ukraine, Russia, or Belarus, all of our manufacturing processes are performed in
a complex of production facilities located in Jordan. This situation could adversely affect our business or the services being provided
to us due to concerns about conflict in the Palestinian territories. For example, when Hamas launched its attack on October 7, 2023, it
had an unfavorable impact on the Jordanian street and the country's national security. Despite bilateral cooperation between Jordan
and the United States that may contribute to assisting the conflicting parties in ultimately achieving peace and security, we cannot assure
that our business operations will not be adversely impacted by such disputes.

 Any of the aforementioned factors could affect
our business, prospects, financial condition, and operating results. The extent and duration of military action, sanctions, and resulting
market disruptions are impossible to predict, but could be substantial.

 We may face interruption of production and
services due to increased security measures in response to terrorism.

 Our business depends on the free flow of products
and services through the channels of commerce. In response to terrorists' activities and threats aimed at the United States, transportation,
mail, financial, and other services may be slowed or stopped altogether. Extensive delays or stoppages in transportation, mail, financial,
or other services could have a material adverse effect on our business, results of operations, and financial condition. Furthermore, we
may experience an increase in operating costs, such as costs for transportation, insurance, and security as a result of the activities
and potential delays. We may also experience delays in receiving payments from payors that have been affected by the terrorist activities.
The United States economy in general may be adversely affected by terrorist activities and any economic downturn could adversely impact
our results of operations, impair our ability to raise capital, or otherwise adversely affect our ability to grow our business.

 We are subject to regulatory and political
uncertainties in Jordan.

 We conduct substantially all of our business and
operations in Jordan. Consequently, government policies and regulations, including tax policies, in Jordan will impact our financial performance
and the market price of our common stock.

 Jordan is a constitutional monarchy, but the King
holds wide executive and legislative powers. The ruling family has taken initiatives that support the economic growth of the country.
However, there is no assurance that such initiatives will be successful or will continue. The rate of economic liberalization could change,
and specific laws and policies affecting manufacturing companies, foreign investments, currency exchange rates, and other matters affecting
investments in Jordan could change as well. A significant change in Jordan's economic policy or any social or political uncertainties
that impact economic policy in Jordan could adversely affect business and economic conditions in Jordan generally and our business and
prospects.

 If we violate applicable anti-corruption
laws or our internal policies designed to ensure ethical business practices, we could face financial penalties and reputational harm that
would negatively impact our financial condition and results of operations.

 We are subject to anti-corruption and anti-bribery
laws in the United States and Jordan. Jordan's reputation for potential corruption and the challenges presented by Jordan's
complex business environment, including high levels of bureaucracy, red tape, and vague regulations, may increase our risk of violating
applicable anti-corruption laws. We face the risk that we, our employees, or any third parties such as our sales agents and distributors
that we engage to do work on our behalf may take action determined to be in violation of anti-corruption laws in any jurisdiction in which
we conduct business, including the Foreign Corrupt Practices Act of 1977 (the "FCPA"). Any violation of the FCPA or any similar
anti-corruption law or regulation could result in substantial fines, sanctions, civil or criminal penalties, and curtailment of operations
that might harm our business, financial condition, or results of operations.

 Our stockholders may face difficulties in
protecting their interests and exercising their rights as a stockholder of ours because we conduct substantially all of our operations
in Jordan and certain of our officers and directors reside outside of the United States.

 Certain of our officers and directors reside outside
the United States. Therefore, our stockholders may experience difficulties in effecting service of legal process, enforcing foreign judgments,
or bringing original actions in any of these jurisdictions based upon U.S. laws, including the federal securities laws or other foreign
laws against us, our officers, and directors. Furthermore, we conduct substantially all of our operations in Jordan through our operating
subsidiaries. Because the majority of our assets are located outside the United States, any judgment obtained in the United States against
us or certain of our directors and officers may not be collectible within the United States.

 Risk Factors Relating to Our Securities

 If we fail to comply with the continuing
listing standards of the Nasdaq, our common stock could be delisted from the exchange.

 If we were unable to meet the continued listing
requirements of the Nasdaq Stock Market ("Nasdaq"), our common stock could be delisted from the Nasdaq. Any such delisting
of our common stock could have an adverse effect on the market price of, and the efficiency of the trading market for, our common stock,
not only in terms of the number of shares that can be bought and sold at a given price, but also through delays in the timing of transactions
and less coverage of us by securities analysts, if any. Also, if in the future we were to determine that we need to seek additional equity
capital, being delisted from Nasdaq could have an adverse effect on our ability to raise capital in the public or private equity markets.

 Future sales and issuances of our common
stock or rights to purchase common stock could result in additional dilution of the percentage ownership of our stockholders and could
cause the market price of our common stock to decline.

 We may issue additional securities in the future.
Pursuant to our amended and restated 2018 Stock Incentive Plan, we may issue up to 1,784,250 shares of common stock to certain members
of our management and key employees. As of the date of this annual report, 117,710 shares of common stock remain available for issuance
under our amended and restated 2018 Stock Incentive Plan.

 Future sales and issuances of our common stock
or rights to purchase our common stock could result in substantial dilution to our existing stockholders. We may sell common stock, convertible
securities, and other equity securities in one or more transactions at prices and in a manner as we may determine from time to time. If
we sell any such securities, our stockholders may be materially diluted. New investors in any future transactions could gain rights, preferences,
and privileges senior to those of holders of our common stock.

 If securities or industry analysts do not
publish research or reports about us, or if they adversely change their recommendations regarding our common stock, our stock price and
trading volume of our common stock could decline.

 The trading market for our common stock will be
influenced by the research and reports that industry or securities analysts publish about us, our industry, and our market. If no analyst
elects to cover us and publish research or reports about us, the market for our common stock could be severely limited and our stock price
could be adversely affected. In addition, if one or more analysts ceases coverage of us or fails to regularly publish reports on us, we
could lose visibility in the financial markets, which in turn could cause our stock price or trading volume to decline. If one or more
analysts who elect to cover us issue negative reports or adversely change their recommendations regarding our common stock, the market
price of our common stock could decline.

 The requirements of being a public company,
including compliance with the reporting requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act")
and the requirements of the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley Act"), may strain our resources, increase our costs,
and distract management, and we may be unable to comply with these requirements in a timely or cost-effective manner.

 We are required to comply with the laws, regulations,
requirements, and certain corporate governance provisions under the Exchange Act and the Sarbanes-Oxley Act. Complying with these statutes,
regulations, and requirements occupies a significant amount of time of our board of directors and management, significantly increases
our costs and expenses, and makes some activities more time-consuming and costly. As a reporting company, we are:

 instituting a more comprehensive compliance function;

 preparing and distributing periodic and current reports under the federal securities laws;

 establishing and enforcing internal compliance policies, such as those related to insider trading; and

 involving and retaining outside counsel and accountants to a greater degree than before we became a reporting company.

 Our ongoing compliance efforts will increase general
and administrative expenses and may divert management's time and attention from the development of our business, which may adversely
affect our financial condition and results of operations.

 If we fail to establish and maintain an
effective system of internal controls, we may not be able to report our financial results accurately. Any inability to report and file
our financial results accurately and timely could harm our business and adversely affect the trading price of our common stock.

 We have been required to evaluate our internal
control over financial reporting under Section 404 of the Sarbanes-Oxley Act beginning with the annual report on Form 10-K for the fiscal
year ended March 31, 2019. The process of designing and implementing internal controls over financial reporting may divert our internal
resources and take a significant amount of time and expense to complete.

 In connection with the preparation and external
audit of our consolidated financial statements for the fiscal year ended March 31, 2024, we identified certain material weaknesses in
our internal control over financial reporting and have formulated plans for remedial measures. Although some remedial measures have been
implemented, our management concluded that our internal control over financial reporting was still ineffective as of March 31, 2025 as
some of the material weaknesses around the information technology environment have not been sufficiently remediated. See "Item 9A.
Controls and Procedures."

 However, our management team cannot guarantee
that our internal controls and disclosure controls and procedures will prevent all possible errors. Because of the inherent limitations
in all control systems, no system of controls can provide absolute assurance that all control issues and instances of fraud, if any, within
the Company have been detected. These inherent limitations include the possibility that judgments in decision-making can be faulty and
subject to simple error or mistake. Furthermore, controls can be circumvented by individual acts of some persons, by collusion of two
or more persons, or by management override of the controls. The design of any system of controls is based in part upon certain assumptions
about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under
all potential future conditions. Over time, measures of control may become inadequate because of changes in conditions or the degree of
compliance with policies or procedures may deteriorate. Because of inherent limitations in a cost-effective control system, misstatements
due to error or fraud may occur and may not be detected.

 We incur and will continue to incur increased
costs and demands upon management as a result of being a public company.

 As a public company listed in the United States,
we incur, and will continue to incur, now that we have ceased to be an "emerging growth company," significant legal, accounting,
and other costs. These costs could negatively affect our financial results. In addition, changing laws, regulations, and standards relating
to corporate governance and public disclosure, including regulations implemented by the SEC and Nasdaq, may increase legal and financial
compliance costs and make some activities more time-consuming. These laws, regulations, and standards are subject to varying interpretations
and, as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies.

 We are committed to comply with evolving laws,
regulations, and standards, and this investment may result in increased general and administrative expenses and a diversion of management's
time and attention from revenue-generating activities to compliance activities. If we do not comply with new laws, regulations, and standards,
regulatory authorities may initiate legal proceedings against us and our business may be harmed.

 Failure to comply with these rules might also
make it more difficult for us to obtain some types of insurance, including director and officer liability insurance, and we might be forced
to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. The impact of
these events could also make it more difficult for us to attract and retain qualified persons to serve on our board of directors, on committees
of our board of directors or as members of senior management.

 We are currently operating in a period of
economic uncertainty and capital market disruption, which has been significantly impacted by geopolitical instability due to the ongoing
military conflict between Russia and Ukraine. Our business, financial condition, and results of operations could be materially adversely
affected by any negative impact on the global economy and capital markets resulting from the conflict in Ukraine or any other geopolitical
tensions, including the ongoing confrontations in the Middle East, such as the conflicts between Iran and Israel and between Israel and
Hamas.

 U.S. and global markets are experiencing volatility
and disruption following the escalation of geopolitical tensions and the start of the military conflict between Russia and Ukraine. On
February 24, 2022, a full-scale military invasion of Ukraine by Russian troops was reported. Although the length and impact of the ongoing
military conflict is highly unpredictable, the conflict in Ukraine could lead to market disruptions, including significant volatility
in commodity prices, credit and capital markets, and supply chain interruptions.

 The military conflict in Ukraine has led to sanctions
and other penalties being levied by the United States, European Union, and other countries against Russia. Additional potential sanctions
and penalties have also been proposed and/or threatened. Russian military actions and the resulting sanctions could adversely affect the
global economy and financial markets and lead to instability and lack of liquidity in capital markets, potentially making it more difficult
for us to obtain additional funds. In addition, in managing an organization operating globally, we are subject to the risks and challenges
related to the potential to subject our business to materially adverse consequences should the situation escalate beyond its current scope,
including, among other potential impacts, the geographic proximity of the situation relative to the Middle East, where a material portion
of our business is conducted.

 Although our business has not been materially
impacted by the ongoing military conflict between Russian and Ukraine to date, it is impossible to predict the extent to which our operations,
or those of our suppliers and manufacturers, will be impacted in the short and long term, or the ways in which the conflict may impact
our business. The extent and duration of the military action, sanctions, and resulting market disruptions are impossible to predict, but
could be substantial. Any such disruptions may also magnify the impact of other risks described in this annual report.

 See also "—Risks Related to Operations
in Jordan—Our operations in Jordan may be adversely affected by social and political uncertainties or change, military actions,
health-related risks, acts of terrorism, or other geopolitical instability."

 We may be adversely affected by the effects
of inflation and a potential recession.

 Inflation has the potential to adversely affect
our liquidity, business, financial condition, and results of operations by increasing our overall cost structure, particularly if we are
unable to achieve commensurate increases in the prices we charge our customers. The existence of inflation in the economy has resulted
in, and may continue to result in, higher interest rates and capital costs, shipping costs, supply shortages, increased costs of labor,
weakening exchange rates, and other similar effects. As a result of inflation, we have experienced and may continue to experience, cost
increases. In addition, poor economic and market conditions, including a potential recession, may negatively impact market sentiment,
decreasing the demand for sportswear and outerwear, which would adversely affect our operating income and results of operations. If we
are unable to take effective measures in a timely manner to mitigate the impact of the inflation as well as a potential recession, our
business, financial condition, and results of operations could be adversely affected.

 Item 1B. Unresolved Staff Comments.

 None.

 Item 1C. Cybersecurity.

 Risk Management and Strategy

 Cybersecurity is a vital aspect of maintaining
the trust of our customers and employees. We have instituted a comprehensive cybersecurity risk management program that employs various
methods to monitor and assess our threat environment and risk profile. These methods include the use of manual and automated tools, conducting
scans of the threat environment, evaluating our and our industry's risk profile, evaluating threats reported to us and conducting
vulnerabilities assessments. We have company-wide policies and procedures in place that further enhance our ability to identify and manage
cybersecurity risks. Our employees receive ongoing training under our security policies.

 Annual risk assessments and penetration testing
are primarily performed by our internal staff, and we have not engaged any third parties in connection with such processes except that
we have an external Management Information Systems consultant, or MIS consultant, who provides advice to our CEO in the review of test
results. We believe these tests are useful tools for maintaining a robust cybersecurity program to protect our investors, customers, employees,
vendors, and intellectual property. The results of these tests are presented annually to the CEO, with support provided by our external
MIS consultant, for review to ensure compliance with cybersecurity standards.

 During the fiscal year ended March 31, 2025, we
have not identified any risks from cybersecurity threats that have materially affected our business operations or financial conditions.

 Governance

 Our CEO, MIS consultant, and MIS supervisor oversee
risk management to ensure that the Company's policies and procedures are functioning as intended to protect the Company's
information systems from cybersecurity threats.

 More specifically, MIS supervisor is responsible
for identifying and assessing cybersecurity risks on an ongoing basis, establishing processes designed to ensure that such potential cybersecurity
risk exposures are monitored, putting in place appropriate mitigation and remediation measures, and maintaining cybersecurity programs.
 Our cybersecurity programs are managed under the direction of CEO and MIS consultant, and MIS supervisor monitors the prevention, detection,
mitigation, and remediation of cybersecurity risks. MIS supervisor regularly updates the CEO on the Company's cybersecurity programs,
material cybersecurity risks and mitigation strategies and provides regular cybersecurity updates.

 Item 2. Properties.

 Jerash Garments and Kawkab own two industrial
buildings of approximately 136,000 and 79,000 square feet, respectively, a dormitory building with a kitchen area of approximately 195,000
square feet, and one piece of land of approximately 133,000 square feet in Al Tajamouat Industrial City. We lease additional space totaling
approximately 527,000 square feet in industrial buildings in Al Tajamouat Industrial City. In addition, we lease space for our workers
in dormitories located inside and outside of Al Tajamouat Industrial City.

 Treasure Success owns an office space in Hong
Kong through acquisition of Ever Winland on August 29, 2022. See "—Item 1. Business—Organizational Structure."

 In 2018, we commenced another project to build
a 54,000 square-foot factory in Al-Hasa County in the Tafilah Governorate of Jordan, which started operation in November 2019. This project
is a joint project with the Jordanian Ministry of Labor and the Employment and Training Department in Jordan. The Ministry of Labor financed
the building of the factory and the Employment and Training Department supported 50% of the workers' salaries, as well as transportation
and social security costs in the first 12 months following the completion of the project. We used the factory without paying rent through
December 2022. We have continued to use the factory without paying rent since January 2023 as new arrangements with the Jordanian Ministry
of Labor are still being made.

 In April 2021, we commenced construction on a
189,000-square-foot housing facility for our multi-national workforce, situated on a 49,000-square-foot site owned by us, located in Al
Tajamouat Industrial City. The construction has been completed as of the date of this annual report and our workers have started moving
in. To meet increasing demand, we are also finalizing plans to construct an additional project on a nearby 133,000-square-foot parcel
that we purchased in 2019 for $1.2 million, with 2/3 of the land expected to be allocated for the establishment of our seventh factory
and 1/3 for housing purposes. As of the date of this annual report, we are working with engineering consultants to proceed with the architectural
design of these buildings. However, execution of this construction plan will depend on the progress of the Company's business development
and an ongoing assessment of customer order condition.

 On January 1, 2021, Jiangmen Treasure Success
entered a factory lease agreement with an independent third party. The lease has a five-year term with monthly rent amount of CNY50,245
(approximately $6,900) for the first year, CNY60,270 (approximately $8,400) for the second year, and 5% further annual increments starting
from the third year.

 On June 24, 2021, we entered into an agreement
through Jerash Garments to acquire all of the stock of an existing garment manufacturing business in order to operate our fifth manufacturing
facility in Al Tajamouat Industrial City located in Amman, Jordan.

 On July 14, 2021, Jerash Garments and the sole
shareholder of Kawkab Venus entered into an agreement, pursuant to which Jerash Garments acquired all of the outstanding stock of Kawkab
Venus. Apart from the land and factory premises, Kawkab Venus had no other significant assets or liabilities and no operation activities
or employees at the time of acquisition, so the acquisition was accounted for an asset acquisition. As of August 21, 2022, Kawkab Venus
became a subsidiary of Jerash Garments.

 We believe the real estate property that we own
and lease is sufficient to conduct our operations as they are currently conducted.

 Item 3. Legal Proceedings.

 We are not currently involved in any material
legal proceedings. From time-to-time we are, and we anticipate that we will be, involved in legal proceedings, claims, and litigation
arising in the ordinary course of our business and otherwise. The ultimate costs to resolve any such matters could have a material adverse
effect on our financial statements. We could be forced to incur material expenses with respect to these legal proceedings, and in the
event that there is an outcome in any that is adverse to us, our financial position and prospects could be harmed.

 Item 4. Mine Safety Disclosures

 Not applicable.

 Item 5. Market for Registrant's Common
Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

 Our common stock has been traded and quoted on
the Nasdaq Capital Market under the symbol "JRSH" since May 4, 2018. Before that, our stock was not traded on any stock exchange.
As of June 24, 2025, there were 12,699,940 shares of common stock issued and outstanding held by approximately 41 stockholders of record.

 Since November 2018, the Board of Directors of
Jerash Holdings has declared a quarterly cash dividend payable to holders of its common stock. Subject to the discretion of the Board
of Directors and applicable law, we currently expect to continue declaring comparable quarterly cash dividends in the future.

 For information on securities authorized for issuance
under our existing equity compensation plan, see Item 12 under the heading "Security Ownership of Certain Beneficial Owners and
Management and Related Stockholder Matters."

 In the fourth quarter of the fiscal year ended
March 31, 2025, the Company has not made any repurchases of its outstanding shares of common stock.

 During the fiscal years ended March 31, 2025 and
2024, we did not have sales of unregistered securities other than those already disclosed in the quarterly reports on Form 10-Q in the
fiscal years 2025 and 2024, and current reports on Form 8-K.

 Item 6. [Reserved].

 Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations.

 The following discussion of our financial condition
and results of operations should be read in conjunction with our consolidated financial statements and the related notes included elsewhere
in this annual report.

 Executive Overview

 Seasonality of Sales

 A significant portion of our revenue is received
during the first six months of our fiscal year. The majority of our VF Corporation orders are derived from winter season fashions, the
sales of which occur in Spring and Summer and are merchandized by VF Corporation during the months of September through November. As such,
the second half of our fiscal years reflect lower sales in anticipation of the spring and summer seasons. One of our strategies is to
increase sales with other customers where clothing lines are stronger during the spring months. This strategy also reflects our current
plan to increase our number of customers to mitigate our current concentration risk with VF Corporation.

 Results of Operations

 The following table presents certain information
from our consolidated statements of operations and comprehensive loss for the fiscal years ended March 31, 2025 and 2024 and should be
read, along with all of the information in this management's discussion and analysis, in conjunction with the consolidated financial
statements and related notes included elsewhere in this annual report.

 (All amounts, other than percentages, in thousands
of U.S. dollars)

 Fiscal Years Ended March 31,

 2025

 2024

 As % of

 As % of

 Year over Year

 Statement of Income Data:

 Sales

 Sales

 %

 Revenue

 $
 145,812

 %

 $
 117,187

 %

 $
 28,625

 %

 Cost of goods sold

 123,493

 %

 100,285

 %

 23,208

 %

 Gross profit

 22,319

 %

 16,902

 %

 5,417

 %

 Selling, general, and administrative expenses

 20,872

 %

 17,567

 %

 3,305

 %

 Other expenses, net

 1,296

 %

 %

 %

 Net income (loss) before taxation

 $

 %

 $
 (1,370
)

 (1
)%

 $
 1,521

 (111
)%

 Income tax expense

 %

 %

 %

 $
 (840
)

 (1
)%

 $
 (2,042
)

 (2
)%

 $
 1,202

 (59
)%

 Revenue. Our revenue was $145.8
million for fiscal 2025, compared to $117.2 million for fiscal 2024, an increase of $28.6 million, or 24%, primarily due to increases
in shipments to two of our major customers in the U.S., which is our main export market.

 The following table outlines the dollar amount
and percentage of total sales to our customers for the fiscal years ended March 31, 2025 and 2024, respectively.

 (All amounts, other than percentages, in thousands
of U.S. dollars)

 Fiscal 2025

 Fiscal 2024

 Sales

 Sales

 (Amount)

 %

 (Amount)

 %

 VF Corporation (1)

 $
 94,151

 64.6
 %

 $
 78,912

 67.3
 %

 New Balance

 17,872

 12.2
 %

 13,931

 11.9
 %

 Suzhou Unitex

 5,696

 3.9
 %

 0.8
 %

 SWC Inc.

 5,049

 3.5
 %

 0.6
 %

 Tharanco

 4,673

 3.2
 %

 0.2
 %

 Hugo Boss

 4,018

 2.8
 %

 2,920

 2.5
 %

 G-III

 2,352

 1.6
 %

 5,773

 4.9
 %

 Others

 12,001

 8.2
 %

 13,820

 11.8
 %

 Total

 $
 145,812

 100.0
 %

 $
 117,187

 100.0
 %

 (1)

 A large portion of our products are sold under The North Face, Timberland, and Vans brands owned by VF Corporation.

 Revenue by Geographic Area

 (All amounts, other than percentages, in thousands
of U.S. dollars)

 Fiscal Years Ended March 31,

 2025

 2024

 Year over Year

 Region

 %

 %

 %

 United States

 $
 128,577

 %

 $
 102,520

 %

 $
 26,057

 %

 China and Hong Kong

 8,941

 %

 8,187

 %

 %

 Germany

 4,018

 %

 2,920

 %

 1,098

 %

 Jordan

 3,081

 %

 2,179

 %

 %

 Others

 1,195

 %

 1,381

 %

 (186
)

 (13
)%

 Total

 $
 145,812

 %

 $
 117,187

 %

 $
 28,625

 %

 Since January 2010, all apparel manufactured in
Jordan can be exported to the U.S. without customs duty being imposed, pursuant to the United States-Jordan Free Trade Agreement entered
into in December 2001. This free trade agreement provides us with substantial competitiveness and benefit that allowed us to expand our
garment export business in the U.S. Effective from April 5, 2025, the U.S. imposed a baseline tariff of 10% on imports from almost all
countries, including Jordan. Then, effective from April 9, 2025, it had announced "reciprocal" tariffs of imports from specified
countries, amongst them Jordan with a prevailing rate of then 20%. These "reciprocal" tariffs are postponed for 90 days, whilst
the 10% baseline tariff persists. Up to the date of this annual report, the 90 days postponement of the "reciprocal" tariff
has not expired. Impact of the tariff would also be affected by the comparative levels of the tariffs of Jordan and other countries.

 The increase of approximately 25% in sales to
the U.S. during fiscal 2025 was mainly attributable to increases in shipments to two of our major customers in the U.S. Some shipments
deferred to the first quarter of fiscal 2025, from the fourth quarter of fiscal 2024 due to disruptions in the logistic route in the Red
Sea turmoil.

 During fiscal 2025, aggregate sales to Jordan,
China and Hong Kong, Germany, and other locations, such as Mexico and Indonesia, increased by 18% from approximately $14.7 million in
fiscal 2024 to $17.2 million. This increase can be attributed to growth in businesses with customers in these countries introduced in
the past few years.

 Cost of goods sold. Our cost
of goods sold experienced an increase of approximately $23.2 million to approximately $123.5 million in fiscal 2025 from approximately
$100.3 million in fiscal 2024. As a percentage of revenue, the cost of goods sold decreased by approximately 1 percentage point to 85%
in fiscal 2025 from 86% in fiscal 2024. The decrease in the cost of goods sold as a percentage of revenue was primarily attributable to
higher production and shipment volume that generated higher margin through economy of scale.

 For the fiscal year ended March 31, 2025 and 2024,
we purchased approximately 10% of our garments from one major supplier.

 Gross profit margin. Our gross profit
margin was approximately 15% in fiscal 2025, representing an increase by approximately 1 percentage point from 14% in fiscal 2024. The
increase in gross profit margin was primarily influenced by better planning and execution of logistic and production that resulted in
higher production and shipment volume that brought down unit cost of production.

 Selling, general, and administrative expenses.
 Selling, general, and administrative expenses increased by approximately 19% from approximately $17.6 million in fiscal 2024 to
$20.9 million in fiscal 2025. The increase was mainly attributable to higher shipment costs due to higher sales volume and also some air
shipping costs for garments in the first quarter of fiscal 2025 due to logistic hiccups in early 2024 and an increase in share-based compensation
expenses of $772,000.

 Other expenses, net. Other
expenses, net were approximately $1.3 million in fiscal 2025, compared to other expenses, net of approximately $0.7 million in fiscal
2024. The increase in other expenses from fiscal 2024 to fiscal 2025 was primarily due to increase in interest expenses from the supply
chain financing programs of our major customers, more proceeds from short-term loan from credit facility and higher interest rate in fiscal
2025.

 Taxation. Income tax expenses for
fiscal 2025 were approximately $1.0 million, compared to income tax expenses of approximately $0.7 million for fiscal 2024. The effective
tax rate for fiscal 2025 increased to 656%, compared to -49.1% for fiscal 2024. The increase in the effective tax rate mainly resulted
from the increase in operating profit in a Hong Kong subsidiary and $175,290 amendment of federal tax returns for the fiscal years ended
March 31, 2022 and March 31, 2023, related to the inclusion of Subpart F income during the fiscal year.

 Net loss. Net loss for fiscal 2025
was $0.8 million, compared to net loss of approximately $2.0 million for fiscal 2024. The net loss mainly attributable to higher logistic
costs and labor costs incurred in early to mid-2024 arisen from the logistic hiccups in the short period after the Red Sea crisis broke
out.

 Liquidity and Capital Resources

 Jerash Holdings is a holding company incorporated
in Delaware. As a holding company, we rely on dividends and other distributions from our Jordanian and Hong Kong subsidiaries to satisfy
our liquidity requirements. Current Jordanian regulations permit our Jordanian subsidiaries to pay dividends to us only out of their accumulated
profits, if any, determined in accordance with Jordanian accounting standards and regulations. In addition, our Jordanian subsidiaries
are required to set aside at least 10% of their respective accumulated profits each year until the reserve is equal to 100% of the entity's
share capital, if any, to fund certain reserve funds. These reserves are not distributable as cash dividends. We have relied on direct
payments of expenses by our subsidiaries to meet our obligations to date. To the extent payments are due in U.S. dollars, we have occasionally
paid such amounts in JOD to an entity controlled by our management capable of paying such amounts in U.S. dollars. Such transactions have
been made at prevailing exchange rates and have resulted in immaterial losses or gains on currency exchange.

 As of March 31, 2025, our cash balance was approximately
$13.3 million and restricted cash was approximately $1.7 million, compared to cash of approximately $12.4 million and restricted cash
of approximately $1.6 million as of March 31, 2024. The increase in total cash during fiscal 2025 was primarily due to the utilization
of the supply chain financing programs of our major customers that expedited receivable collections and also the drawdown of $4.5 million
of short-term bank financing to support purchases of raw materials for orders to be shipped in fiscal 2026.

 Our current assets as of March 31, 2025 were approximately
$54.4 million, and our current liabilities were approximately $19.8 million, which resulted in a current ratio of approximately 2.7 to
1. Our current assets as of March 31, 2024 were approximately $50.9 million, and our current liabilities were approximately $14.8 million,
which resulted in a current ratio of approximately 3.4:1. For fiscal 2025, the increase in current assets were primarily due to increases
in advances to suppliers to support raw material purchases, prepaid expenses, cash, and inventory, which was offset partially by decreases
in accounts receivable balance due to the use of customers' supply chain financing programs.

 We had net working capital of $34.6 million and
$36.1 million as of March 31, 2025 and 2024, respectively. Based on our current operating plan, we believe that cash on hand and cash
generated from operation will be sufficient to support our working capital needs for the next 12 months from the date of this Annual Report.

 Since May and October 2021, we have participated
in supply chain financing programs of two of our major customers, respectively. The programs allow us to receive early payments for approved
sales invoices submitted by us through the bank the customer cooperates with. For any early payments received, we are subject to an early
payment charge imposed by the customer's bank, for which the rate is Secured Overnight Financing Rate ("SOFR") plus
a spread. The arrangement allows us to have better liquidity without the need to incur administrative charges and handling fees as in
bank financing. In March 2024, we participated in an additional supply chain financing program with one customer.

 We have funded our working capital needs from
operations. Our working capital requirements are influenced by the level of our operations, the numerical and dollar volume of our sales
contracts, the progress of execution on our customer contracts, and the timing of accounts receivable collections.

 Credit Facilities

 DBS Facility Letter

 Pursuant to the DBS facility letter dated January
12, 2022, DBSHK provided a bank facility of up to $5.0 million to Treasure Success, which was amended pursuant to a facility letter dated
January 4, 2024. Pursuant to the amended agreement, DBSHK agreed to finance cargo receipt, trust receipt, account payable financing, and
certain types of import and export invoice financing up to an aggregate of $5.0 million, subject to certain financial covenants. The DBSHK
facility bears interest at 1.5% per annum over HIBOR for HKD bills and 1.1% to 1.3% per annum over DBSHK's cost of funds for foreign
currency bills. The facility is guaranteed by Jerash Holdings and became available to the Company on June 17, 2022. As of March 31, 2025
and 2024, the outstanding balances were $4.5 million and $nil, respectively, under this DBSHK facility. The increase in short-term bank
financing was to support purchases of raw materials to support orders to be shipped in fiscal 2026.

 Fiscal Years ended March 31, 2025 and 2024

 The following table sets forth a summary of our
cash flows for the fiscal years ended March 31, 2025 and 2024.

 (All amounts in thousands of U.S. dollars)

 For the fiscal years ended

 2025

 2024

 Net cash provided by operating activities

 $
 1,365

 $
 2,485

 Net cash used in investing activities

 (2,370
)

 (5,143
)

 Net cash provided by (used in) financing activities

 2,053

 (2,428
)

 Effect of exchange rate changes on cash

 (21
)

 (289
)

 Net increase (decrease) in cash and restricted cash

 1,027

 (5,375
)

 Cash and restricted cash, beginning of year

 14,037

 19,412

 Cash and restricted cash, end of year

 $
 15,064

 $
 14,037

 Supplemental disclosure information

 Cash paid for interest

 $
 1,720

 $
 1,204

 Income tax paid

 $
 1,399

 $
 2,253

 Non-cash investing and financing activities

 Equipment obtained by utilizing long-term deposit

 $

 $

 Operating lease right of use assets obtained in exchange for operating lease obligations

 $

 $
 1,059

 Operating Activities

 Net cash provided by operating activities was
approximately $1.4 million in fiscal 2025, compared to net cash provided by operating activities of approximately $2.5 million in fiscal
2024. The decrease in net cash provided by operating activities was primarily attributable to the following factors:

 a decrease of $2.4 million in accounts receivable during
fiscal 2025, compared to an increase of $3.0 million during fiscal 2024;

 an increase of $0.5 million in inventory during fiscal 2025,
compared to a decrease of $5.4 million during fiscal 2024;

 an increase of $3.6 million in advances to suppliers during
fiscal 2025, compared to an increase of $1.6 million during fiscal 2024;

 A decrease of $0.5 million of deferred revenue during fiscal
2025, compared to an increase of $0.9 million during fiscal 2024;

 a net loss of $0.8 million during fiscal 2025, compared to
a net loss of $2.0 million during fiscal 2024; and

 Investing Activities

 Net cash used in investing activities was approximately
$2.4 million and $5.1 million for fiscal 2025 and 2024, respectively. The decrease in net cash used in fiscal year 2025 compared to 2024
was primarily due to the capital expenditures for the dormitory construction of $3.6 million and $1.1 million in fiscal 2024 and fiscal
2025, respectively. There was a slight decrease in capital expenditures in property, plant, and equipment for expansions in fiscal 2025.

 Financing Activities

 Cash provided by financing activities was $2.1
million in fiscal 2025, which was primarily related to the net draw down of short-term bank financing of $4.5 million, which was offset
by the distribution of dividends of $2.4 million. Net cash used in financing activities was approximately $2.4 million for fiscal 2024,
mainly due to dividend payments in the period.

 Statutory Reserves

 In accordance with the corporate Law in Jordan,
Jerash Holdings' subsidiaries in Jordan are required to make appropriations to certain reserve funds, based on net income determined
in accordance with generally accepted accounting principles of Jordan. Appropriations to the statutory reserve are required to be 10%
of net income until the reserve is equal to 100% of the entity's share capital. Jiangmen Treasure Success is required to set aside
10% of its net income as statutory surplus reserve until such reserve is equal to 50% of its registered capital. These reserves are not
available for dividend distribution. The statutory reserve was $413,821 as of March 31, 2025 and 2024.

 The following table provides the amount of our
statutory reserves, the amount of restricted net assets, consolidated net assets, and the amount of restricted net assets as a percentage
of consolidated net assets, as of March 31, 2025 and 2024.

 (All amounts, other than percentages, in thousands
of U.S. dollars)

 As of March 31,

 2025

 2024

 Statutory Reserves

 $

 $

 Total Restricted Net Assets

 $

 $

 Consolidated Net Assets

 $
 62,869

 $
 64,431

 Restricted Net Assets as Percentage of Consolidated Net Assets

 0.66
 %

 0.64
 %

 Total restricted net assets accounted for approximately
0.66% of our consolidated net assets as of March 31, 2025. As our subsidiaries in Jordan are only required to set aside 10% of net profits
to fund the statutory reserves with the maximum reserve equal to 100% of the entity's capital, we believe the potential impact of
such restricted net assets on our liquidity is limited.

 Capital Expenditures

 We had capital expenditures of approximately $2.4
million and $5.1 million in fiscal 2025 and 2024, respectively. For the fiscal year ended March 31, 2025, our capital expenditures included
payments for additional plant and machinery of approximately $1.0 million and payments for construction of properties of approximately
$1.1 million. For the fiscal year ended March 31, 2024, payments for additional plant and machinery, and construction of a dormitory and
factory expansion, amounted to approximately $1.2 million and $3.6 million, respectively.

 On August 7, 2019, we completed a transaction
to acquire 12,340 square meters (approximately three acres) of land in Al Tajamouat Industrial City, Jordan, from a third party to construct
a dormitory for our employees with aggregate purchase price JOD863,800 (approximately $1,218,303). Management has revised the plan to
construct both dormitory and production facilities on the land in order to capture the increasing demand for our capacity. We are conducting
engineering design and study on this project with the business growth prospect of new customers to be introduced in the coming few years.
On February 6, 2020, we completed a transaction to acquire 4,516 square meters (approximately 48,608 square feet) of land in Al Tajamouat
Industrial City, Jordan, from a third party to construct a dormitory for our employee with aggregate purchase price JOD313,501 (approximately
US$442,162). The dormitory and dormitory kitchen were completed in the second quarter and the fourth quarter of fiscal year 2025, respectively.
We have spent approximately $10.6 million in capital expenditures to build the dormitory and the dormitory kitchen.

 We project that there will be an aggregate of
approximately $1.3 million and $7.8 million of capital expenditures in the fiscal years ending March 31, 2026 and 2027, respectively,
for further enhancement of production capacity to meet future sales growth. The realization of these investments depends on the progress
of our business development, including expanding our client base and securing increased commitments from existing customers. We expect
that our capital expenditures will increase in the future as our business continues to develop and expand. We have used cash generated
from operations of our subsidiaries to fund our capital commitments in the past and anticipate using such funds to fund capital expenditure
commitments in the future.

 Off-balance Sheet Commitments and Arrangements

 We have not entered into any other financial guarantees
or other commitments to guarantee the payment obligations of any third parties. In addition, we have not entered into any derivative contracts
that are indexed to our own shares and classified as stockholders' equity, or that are not reflected in our consolidated financial
statements.

 For Management's Discussion and Analysis
of the fiscal years ended March 31, 2024 and 2023, please see our Annual Report on Form 10-K for the fiscal year ended March 31, 2024,
filed with the SEC on June 28, 2024.

 Critical Accounting Estimates

 We prepare our consolidated financial statements
in conformity with accounting principles generally accepted by the United States of America, which require us to make judgments, estimates,
and assumptions that affect our reported amount of assets, liabilities, revenue, costs and expenses, and any related disclosures. Although
there were no material changes made to the accounting estimates and assumptions in the past two years, we continually evaluate these estimates
and assumptions based on the most recently available information, our own historical experience, and various other assumptions that we
believe to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process,
actual results could differ from our expectations as a result of changes in our estimates. We have not identified any critical accounting
estimates.

 Recent Accounting Pronouncements

 See "Note 3—Recent Accounting Pronouncements"
in the notes to our audited consolidated financial statements for a discussion of recent accounting pronouncements.

 Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

 Not applicable.

 Item 8. Financial Statements and Supplementary Data.

 JERASH HOLDINGS (US), INC.

 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

 Page

 Report of Independent Registered Public Accounting Firm (CBIZ CPAs P.C., PCAOB ID # 199)

 Report of Independent Registered Public Accounting Firm (Marcum LLP, PCAOB ID # 688)

 Consolidated Balance Sheets as of March 31, 2025 and 2024

 Consolidated Statements of Operations and Comprehensive Loss for the Fiscal Years Ended March 31, 2025 and 2024

 Consolidated Statements of Changes in Equity for the Fiscal Years Ended March 31, 2025 and 2024

 Consolidated Statements of Cash Flows for the Fiscal Years Ended March 31, 2025 and 2024

 Notes to Consolidated Financial Statements
 F-8–F-26

 F- 1

 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM

 To the Stockholders and Board of Directors of

 Jerash Holdings (US), Inc.

 Opinion on the Financial Statements

 We have audited the accompanying consolidated
balance sheet of Jerash Holdings (US), Inc. (the "Company") as of March 31, 2025, the related consolidated statements of operations
and comprehensive loss, changes in equity and cash flows for the year ended March 31, 2025, and the related notes (collectively referred
to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the
financial position of the Company as of March 31, 2025, and the results of its operations and its cash flows for the year ended March
31, 2025, in conformity with accounting principles generally accepted in the United States of America.

 As discussed in Notes 3 and 15 to the financial
statements, the Company adopted ASU 2023-07, Segment Reporting (Topic 280) as of March 31, 2025. We also have audited the adjustments
necessary to restate the segment information for the year ended March 31, 2024, and to reflect the adoption of ASU 2023-07, Segment Reporting
(Topic 280) to the segment information for the year ended March 31, 2024, as provided in Note 15. In our opinion, such adjustments are
appropriate and have been properly applied. We were not engaged to audit, review or apply any procedures to the financial statements of
the Company for the year ended March 31, 2024, other than with respect to the adjustments and, accordingly, we do not express an opinion
or any other form of assurance on the financial statements for the year ended March 31, 2024 taken as a whole.

 Basis for Opinion

 These financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We
are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.

 We conducted our audit in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding
of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal
control over financial reporting. Accordingly, we express no such opinion.

 Our audit included performing procedures to assess
the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

 Prior Period Financial Statements

 The financial statements of the Company as of
and for the year ended March 31, 2024, were audited by Marcum LLP, whose report dated June 28, 2024, expressed an unmodified opinion on
those statements.

 Critical Audit Matters

 Critical audit matters are matters arising from
the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and
that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging,
subjective, or complex judgments. We determined that there are no critical audit matters.

 /s/ CBIZ CPAs P.C.

 CBIZ CPAs P.C.

 We have served as the Company's auditor since 2016 (such date
takes into account the acquisition of the attest business of Marcum LLP by CBIZ CPAs P.C. effective November 1, 2024).

 Costa Mesa, CA

June 25, 2025

 F- 2

 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM

 To the Stockholders and Board of Directors of

 Jerash Holdings (US), Inc.

 Opinion on the Financial Statements

 We have audited before the effects of the retrospective
adjustments to the disclosures for the adoption of ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures
("ASU 2023-07") discussed in Notes 3 and 15 to the consolidated financial statements, the accompanying consolidated balance
sheet of Jerash Holdings (US), Inc. (the "Company") as of March 31, 2024, the related consolidated statements of operations
and comprehensive loss, changes in equity and cash flows for the year ended March 31, 2024, and the related notes (collectively referred
to as the "financial statements") (the FY2024 financial statements before the effects of the adjustments discussed in
Notes 3 and 15 to the financial statements are not presented herein). In our opinion, the financial statements, before the effects of
the retrospective adjustments to the disclosures for the adoption of ASU 2023-07 discussed in Notes 3 and 15 to the financial statements,
present fairly, in all material respects, the financial position of the Company as of March 31, 2024, and the results of its operations
and its cash flows for the year ended March 31, 2024, in conformity with accounting principles generally accepted in the United States
of America.

 We were not engaged to audit, review, or apply
any procedures to the retrospective adjustments to the disclosures for the adoption of ASU 2023-07 discussed in Notes 3 and 15 to the
financial statements, and accordingly, we do not express an opinion or any form of assurance about whether such adjustments are appropriate
and have been properly applied. Those adjustments were audited by CBIZ CPAs P.C.

 Basis for Opinion

 These financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We
are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.

 We conducted our audit in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding
of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal
control over financial reporting. Accordingly, we express no such opinion.

 Our audit included performing procedures to assess
the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

 Critical Audit Matters

 Critical audit matters are matters arising from
the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and
that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging,
subjective, or complex judgments. We determined that there are no critical audit matters.

 /s/ Marcum llp

 Marcum llp

 We have served as the Company's auditor from 2016 to 2025.

 Costa Mesa, CA

 June 28, 2024

 F- 3

 JERASH HOLDINGS (US), INC.,

 AND SUBSIDIARIES

 CONSOLIDATED
BALANCE SHEETS

 2025

 2024

 ASSETS

 Current Assets:

 Cash

 $
 13,346,791

 $
 12,428,369

 Accounts receivable, net

 3,076,074

 5,417,513

 Inventories

 27,704,829

 27,241,573

 Prepaid expenses and other current assets

 3,648,321

 2,746,068

 Advances to suppliers, net

 6,644,194

 3,086,137

 Total Current Assets

 54,420,209

 50,919,660

 Restricted cash - non-current

 1,717,248

 1,608,498

 Long-term deposits

 464,934

 802,306

 Deferred tax assets, net

 -

 158,329

 Property, plant, and equipment, net

 25,023,681

 24,998,096

 Goodwill

 499,282

 499,282

 Operating lease right of use assets

 850,172

 1,259,395

 Total Assets

 $
 82,975,526

 $
 80,245,566

 LIABILITIES AND EQUITY

 Current Liabilities:

 Credit facilities

 $
 4,512,462

 $
 -

 Accounts payable

 6,507,308

 6,340,237

 Accrued expenses

 4,342,436

 4,175,843

 Income tax payable - current

 1,305,386

 1,647,199

 Uncertain tax provision

 175,290

 -

 Other payables

 2,149,185

 2,234,870

 Deferred revenue

 487,004

 10,200

 Operating lease liabilities - current

 339,699

 370,802

 Total Current Liabilities

 19,818,770

 14,779,151

 Deferred tax liabilities, net

 -

 Operating lease liabilities - non-current

 287,527

 618,302

 Income tax payable - non-current

 -

 417,450

 Total Liabilities

 20,106,417

 15,814,903

 Commitments and Contingencies (Note 16)

 Equity

 Preferred stock, $ 0.001 par value; 500,000 shares authorized; none issued and outstanding

 $
 -

 $
 -

 Common stock, $ 0.001 par value; 30,000,000 shares authorized; 12,939,418 and 12,534,318 shares issued; 12,699,940 and 12,294,840 shares outstanding as of March 31, 2025 and 2024, respectively

 12,939

 12,534

 Additional paid-in capital

 25,674,835

 23,917,094

 Treasury stock, 239,478 shares

)

)

 Statutory reserve

 413,821

 413,821

 Retained earnings

 38,396,901

 41,704,238

 Accumulated other comprehensive loss

 ( 513,122
)

 ( 492,319
)

 Total Jerash Holdings (US), Inc. Stockholders' Equity

 62,816,328

 64,386,322

 Noncontrolling interest

 52,781

 44,341

 Total Equity

 62,869,109

 64,430,663

 Total Liabilities and Equity

 $
 82,975,526

 $
 80,245,566

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 4

 JERASH HOLDINGS (US),
INC.,

 AND SUBSIDIARIES

 CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

 For the Fiscal Years Ended

 2025

 2024

 Revenue, net

 $
 145,812,006

 $
 117,187,340

 Cost of goods sold

 123,492,561

 100,284,991

 Gross Profit

 22,319,445

 16,902,349

 Selling, general, and administrative expenses

 19,114,456

 16,581,256

 Stock-based compensation expenses

 Total Operating Expenses

 20,872,602

 17,567,304

 Income (Loss) from Operations

 1,446,843

 ( 664,955
)

 Other (Income) Expenses:

 Interest expenses

 ( 1,719,760
)

 ( 1,203,596
)

 Other income, net

 424,108

 499,120

 Total other expenses, net

 ( 1,295,652
)

 ( 704,476
)

 Net profit (loss) before provision for income taxes

 151,191

 ( 1,369,431
)

 Income tax expenses

 991,120

 672,495

 ( 839,929
)

 ( 2,041,926
)

 Net (profit) loss attributable to noncontrolling interest

 ( 8,440
)

 36,024

 Net loss attributable to Jerash Holdings (US), Inc.'s Common Stockholders

 $
 ( 848,369
)

 $
 ( 2,005,902
)

 $
 ( 839,929
)

 $
 ( 2,041,926
)

 Other Comprehensive Income (Loss):

 Foreign currency translation loss

 ( 20,803
)

 ( 369,090
)

 Total Comprehensive Loss

 ( 860,732
)

 ( 2,411,016
)

 Comprehensive (gain) loss attributable to noncontrolling interest

 ( 8,440
)

 36,024

 Comprehensive Loss Attributable to Jerash Holdings (US), Inc.'s Common Stockholders

 $
 ( 869,172
)

 $
 ( 2,374,992
)

 Loss Per Share Attributable to Common Stockholders:

 Basic and diluted

 $
 ( 0.07
)

 $
 ( 0.16
)

 Weighted Average Number of Shares

 Basic

 12,329,021

 12,294,840

 Diluted

 12,329,021

 12,294,840

 Dividend per share

 $
 0.20

 $
 0.20

 The
accompanying notes are an integral part of these consolidated financial statements.

 F- 5

 JERASH HOLDINGS (US),
INC.,

 AND SUBSIDIARIES

 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

 FOR
THE FISCAL YEARS ENDED MARCH 31, 2025 AND 2024

 Preferred Stock

 Common Stock

 Additional Paid-in

 Treasury

 Statutory

 Retained

 Accumulated Other Comprehensive

 Noncontrolling

 Total

 Capital

 Stock

 Reserve

 Earnings

 Loss

 interest

 Equity

 Balance at March 31, 2023

 -

 $
 -

 12,534,318

 $
 12,534

 $
 22,931,046

 $
)

 $
 410,847

 $
 46,172,082

 $
 ( 123,229
)

 $
 -

 $
 68,234,234

 Stock-based compensation expense for the restricted stock units issued under stock incentive plan

 -

 -

 -

 -

 -

 -

 -

 -

 -

 Allocation of J&B shares

 -

 -

 -

 -

 -

 -

 -

 -

 -

 31,365

 31,365

 Allocation of Jerash Newtech shares

 -

 -

 -

 -

 -

 -

 -

 -

 -

 49,000

 49,000

 -

 -

 -

 -

 -

 -

 -

 ( 2,005,902
)

 -

 ( 36,024
)

 ( 2,041,926
)

 Dividend payments

 -

 -

 -

 -

 -

 -

 -

)

 -

 -

)

 Statutory reserve

 -

 -

 -

 -

 -

 -

 2,974

 ( 2,974
)

 -

 -

 -

 Foreign currency translation loss

 -

 -

 -

 -

 -

 -

 -

 -

 ( 369,090
)

 -

 ( 369,090
)

 Balance at March 31, 2024

 -

 -

 12,534,318

 12,534

 23,917,094

)

 413,821

 41,704,238

 ( 492,319
)

 44,341

 64,430,663

 Stock-based compensation expense for the restricted stock units issued under stock incentive plan

 -

 -

 -

 -

 -

 -

 -

 -

 -

 Issuance of common stocks upon vesting of restricted stock units

 -

 -

 405,100

 ( 405
)

 -

 -

 -

 -

 -

 -

 Net (loss) profit

 -

 -

 -

 -

 -

 -

 -

 ( 848,369
)

 -

 8,440

 ( 839,929
)

 Dividend payments

 -

 -

 -

 -

 -

 -

 -

)

 -

 -

)

 Foreign currency translation loss

 -

 -

 -

 -

 -

 -

 -

 -

 ( 20,803
)

 -

 ( 20,803
)

 Balance at March 31, 2025

 -

 $
 -

 12,939,418

 $
 12,939

 $
 25,674,835

 $
)

 $
 413,821

 $
 38,396,901

 $
 ( 513,122
)

 $
 52,781

 $
 62,869,109

 The accompanying notes are an integral part of these consolidated financial
statements.

 F- 6

 JERASH HOLDINGS (US),
INC.,

 AND SUBSIDIARIES

 CONSOLIDATED STATEMENTS OF CASH FLOWS

 For the Fiscal Years Ended

 2025

 2024

 CASH FLOWS FROM OPERATING ACTIVITIES

 $
 ( 839,929
)

 $
 ( 2,041,926
)

 Adjustments to reconcile net loss to net cash provided by operating activities:

 Depreciation

 2,681,709

 2,539,736

 Stock-based compensation expenses

 Credit loss recovery, net

 ( 17,054
)

 ( 187,762
)

 Amortization of operating lease right-of-use assets

 591,961

 759,764

 Uncertain tax provision

 175,290

 -

 Changes in operating assets:

 Accounts receivable

 2,358,493

 ( 2,989,214
)

 Bills receivable

 -

 87,573

 Inventories

 ( 463,257
)

 5,415,260

 Prepaid expenses and other current assets

 ( 902,253
)

 187,140

 Advances to suppliers

 ( 3,558,057
)

 ( 1,553,046
)

 Deferred tax assets

 158,329

 ( 4,456
)

 Changes in operating liabilities:

 Accounts payable

 167,071

 557,667

 Accrued expenses

 166,593

 1,245,310

 Other payables

 ( 85,685
)

 757,627

 Deferred revenue

 476,804

 ( 918,193
)

 Operating lease liabilities

 ( 544,616
)

 ( 824,043
)

 Income tax payable

 ( 759,037
)

 ( 1,532,944
)

 Deferred tax liabilities

 -

 Net cash provided by operating activities

 1,364,628

 2,484,541

 CASH FLOWS FROM INVESTING ACTIVITIES

 Purchases of property, plant, and equipment

 ( 951,112
)

 ( 1,241,226
)

 Payments for construction of properties

 ( 1,089,484
)

 ( 3,600,948
)

 Payment for long-term deposits

 ( 329,326
)

 ( 300,762
)

 Net cash used in investing activities

 ( 2,369,922
)

 ( 5,142,936
)

 CASH FLOWS FROM FINANCING ACTIVITIES

 Dividend payments

)

)

 Investment of noncontrolling interest

 -

 31,365

 Repayment from short-term loan

 ( 14,103,935
)

 ( 7,545,829
)

 Proceeds from short-term loan

 18,616,397

 7,545,829

 Net cash provided by (used in) financing activities

 2,053,494

 ( 2,427,603
)

 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND RESTRICTED CASH

 ( 21,028
)

 ( 288,738
)

 NET INCREASE (DECREASE) IN CASH AND RESTRICTED CASH

 1,027,172

 ( 5,374,736
)

 CASH AND RESTRICTED CASH, BEGINNING OF THE YEAR

 14,036,867

 19,411,603

 CASH AND RESTRICTED CASH, END OF THE YEAR

 $
 15,064,039

 $
 14,036,867

 CASH AND RESTRICTED CASH, END OF THE YEAR

 $
 15,064,039

 $
 14,036,867

 LESS: NON-CURRENT RESTRICTED CASH

 1,717,248

 1,608,498

 CASH, END OF THE YEAR

 $
 13,346,791

 $
 12,428,369

 Supplemental disclosure information:

 Cash paid for interest

 $
 1,719,760

 $
 1,203,596

 Income tax paid

 $
 1,398,684

 $
 2,253,410

 Non-cash investing and financing activities

 Equipment obtained by utilizing long-term deposit

 $
 667,567

 $
 354,917

 Operating lease right of use assets obtained in exchange for operating lease obligations

 $
 186,726

 $
 1,058,820

 The accompanying notes are
an integral part of these consolidated financial statements.

 F- 7

 JERASH HOLDINGS (US), INC.

 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

 Jerash Holdings (US), Inc. ("Jerash Holdings")
was incorporated under the laws of the State of Delaware on January 20, 2016. Jerash Holdings is a holding company with no operations.
Jerash Holdings and its subsidiaries are herein collectively referred to as the "Company."

 Jerash Garments and Fashions Manufacturing Company
Limited ("Jerash Garments") is a wholly owned subsidiary of Jerash Holdings and was established in Amman, the Hashemite Kingdom
of Jordan ("Jordan"), as a limited liability company on November 26, 2000 with a declared capital of 150,000 Jordanian Dinar
("JOD") (approximately US$ 212,000).

 Jerash for Industrial Embroidery Company ("Jerash
Embroidery") and Chinese Garments and Fashions Manufacturing Company Limited ("Chinese Garments") were both established
in Amman, Jordan, as limited liability companies on March 11, 2013 and June 13, 2013, respectively, each with a declared capital of JOD
 50,000 (approximately US$ 71,000). Jerash Embroidery and Chinese Garments are wholly owned subsidiaries of Jerash Garments.

 Al-Mutafaweq Co. for Garments Manufacturing Ltd.
("Paramount") is a contract garment manufacturer that was established in Amman, Jordan, as a limited liability company on
October 24, 2004 with a declared capital of JOD 100,000 (approximately US$ 141,000). On December 11, 2018, Jerash Garments and the sole
shareholder of Paramount entered into an agreement pursuant to which Jerash Garments acquired all of the outstanding shares of stock of
Paramount. Jerash Garments assumed ownership of all of the machinery and equipment owned by Paramount. Paramount had no other significant
assets or liabilities and no operating activities or employees at the time of this acquisition, so this transaction was accounted for
as an asset acquisition. As of June 18, 2019, Paramount became a subsidiary of Jerash Garments.

 Jerash The First for Medical Supplies Manufacturing
Company Limited ("Jerash The First") was established in Amman, Jordan, as a limited liability company on July 6, 2020, with
a registered capital of JOD 150,000 (approximately US$ 212,000). Jerash The First is engaged in the production of medical supplies in Jordan
and is a wholly owned subsidiary of Jerash Garments.

 Mustafa and Kamal Ashraf Trading Company (Jordan)
for the Manufacture of Ready-Make Clothes LLC ("MK Garments") is a garment manufacturer that was established in Amman, Jordan,
as a limited liability company on January 23, 2003 with a declared capital of JOD 100,000 (approximately US$ 141,000). On June 24, 2021,
Jerash Garments and the sole shareholder of MK Garments entered into an agreement, pursuant to which Jerash Garments acquired all of the
outstanding stock of MK Garments. As of October 7, 2021, MK Garments became a subsidiary of Jerash Garments.

 Kawkab Venus Dowalyah Lisenaet Albesah ("Kawkab
Venus") was established in Amman, Jordan, as a limited liability company on January 15, 2015 with a declared capital of JOD 50,000
(approximately US$ 71,000). It holds land with factory premises, which are leased to MK Garments. On July 14, 2021, Jerash Garments and
the sole shareholder of Kawkab Venus entered into an agreement, pursuant to which Jerash Garments acquired all of the outstanding stock
of Kawkab Venus. Apart from the land and factory premises, Kawkab Venus had no other significant assets or liabilities and no operation
activities or employees at the time of acquisition, so the acquisition was accounted for an asset acquisition. As of August 21, 2022,
Kawkab Venus became a subsidiary of Jerash Garments.

 Treasure Success International Limited ("Treasure
Success") was organized on July 5, 2016 in Hong Kong Special Administrative Region of the People's Republic of China ("Hong
Kong") as a limited liability company for the primary purpose of employing staff from People's Republic of China ("China")
to support Jerash Garments' operations and is a wholly owned subsidiary of Jerash Holdings.

 Ever Winland Limited ("Ever Winland")
was organized in Hong Kong, as a limited liability company. It holds office premises, which are leased to Treasure Success. On June 22,
2022, Treasure Success and the shareholders of Ever Winland entered into an agreement, pursuant to which Treasure Success acquired all
of the outstanding stock of Ever Winland. Apart from the office premises used by Treasure Success, Ever Winland had no other significant
assets or liabilities and no operating activities or employees at the time of this acquisition, so this transaction was accounted for
as an asset acquisition. As of August 29, 2022, Ever Winland became a subsidiary of Treasure Success.

 F- 8

 NOTE 1 – ORGANIZATION AND DESCRIPTION
OF BUSINESS (CONTINUED)

 J&B International Limited ("J&B")
is a joint venture company established in Hong Kong on January 10, 2023. On March 20, 2023, Treasure Success and P. T. Eratex (Hong Kong)
Limited entered into a Joint Venture and Shareholders' Agreement, pursuant to which Treasure Success acquired 51 % of the equity
interests in J&B on April 11, 2023. The declared capital is 500,000 Hong Kong Dollars ("HKD") (approximately US$ 64,000).
J&B engages in the garment trading and manufacturing business for orders from customers.

 Jerash Newtech (Hong Kong) Holdings Limited ("Jerash
Newtech") is a joint venture company established in Hong Kong on November 3, 2023. On October 10, 2023, Treasure Success and Newtech
Textile (HK) Limited entered into a Joint Venture and Shareholder's Agreement to establish a new joint venture for the establishment
of a fabric facility in Jordan. On November 3, 2023, Jerash Newtech was established according to the aforementioned Joint Venture and
Shareholder's Agreement. Treasure Success owns 51 % of the equity interests in Jerash Newtech. The Company plans to invest approximately
$ 29.9 million to establish the fabric facility in Jordan. Treasure Success and Newtech Textile (HK) Limited will contribute capital in
two installments according to their respective shareholding proportions and conditions. The declared capital of Jerash Newtech is US$ 100,000.

 Jiangmen Treasure Success Business Consultancy
Company Limited ("Jiangmen Treasure Success") was organized on August 28, 2019 under the laws of China in Jiangmen City of
Guangdong Province in China with a total registered capital of HKD 15 million (approximately US$ 1.9 million) to provide support in sales
and marketing, sample development, merchandising, procurement, and other areas. Treasure Success owns 100 % of the equity interests in
Jiangmen Treasure Success.

 Jerash Supplies, LLC ("Jerash Supplies")
was formed under the laws of the State of Delaware on November 20, 2020. Jerash Supplies is engaged in the trading of personal protective
equipment products and is a wholly owned subsidiary of Jerash Holdings.

 The Company is engaged primarily in the manufacturing
and exporting of customized, ready-made sportswear and outerwear produced in its facilities in Jordan and sold in the United States, Jordan,
and other countries.

 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 Basis of Presentation and Principles of Consolidation

 The Company's consolidated financial statements
are prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") and
pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC").

 The consolidated financial statements include
the financial statements of Jerash Holdings, its wholly owned subsidiaries, and two non-wholly owned subsidiaries.

 Non-wholly owned subsidiaries are entities that
the reporting parent entity does not own equity interests in full. Noncontrolling interest is evaluated with a depiction of the portion
of a non-wholly owned subsidiary's net assets, net income, and net comprehensive income that is attributable to holders of equity
classified ownership interests other than the reporting parent entity. As mentioned in Note 1, the Company holds 51 % of equity interest
in J&B and Jerash Newtech through its wholly owned subsidiary, Treasure Success. The Company consolidates J&B and Jerash Newtech
and reports noncontrolling interest to reflect the portion of their equity that is not attributable to the Company as the controlling
shareholder. As of March 31, 2025 and 2024, noncontrolling interest was $ 52,781 and $ 44,341, respectively.

 All significant intercompany balances and transactions have been eliminated
in consolidation.

 Use of Estimates

 The preparation of the consolidated financial
statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported
amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates.

 Cash

 The Company's cash consists of cash on hand
and cash deposited in financial institutions. The Company considers all highly liquid investment instruments with an original maturity
of three months or less from the original date of purchase to be cash equivalents. As of March 31, 2025 and 2024, the Company had no cash
equivalents.

 Restricted Cash

 Restricted cash consists of cash used as security
deposits to obtain credit facilities from a bank and to secure customs clearance, labor import requirements, and other requirements of
local regulations. The Company is required to keep certain amounts on deposit that are subject to withdrawal restrictions. These security
deposits at the bank are refundable only when the bank facilities are terminated. The restricted cash is classified as a current asset
if the Company intends to terminate these bank facilities within one year, and as a non-current asset if otherwise.

 F- 9

 Accounts Receivable, Net

 Accounts receivable are recognized and carried
at the original invoiced amount less an estimated allowance for credit loss. The Company usually grants extended payment terms to customers
with good credit standing and determines the adequacy of credit losses based on the historical level of credit losses, current economic
trends, and reasonable and supportable forecasts that affect the collectability of the future cash flows.

 Inventories

 Inventories are stated at the lower of cost or
net realizable value. Inventories include the cost of raw materials, freight, direct labor and related production overhead. The cost of
inventories is determined using the First-in, First-out method. The Company periodically reviews its inventories for excess or slow-moving
items and makes provisions as necessary to properly reflect inventory value.

 Advance to Suppliers, Net

 Advance to suppliers consists of balances paid
to suppliers for services or materials purchased that have not been provided or received. Advance to suppliers for services and materials
is short-term in nature. Advance to suppliers is reviewed periodically to determine whether its carrying value has become impaired. The
Company considers the assets to be impaired if the performance of the suppliers becomes doubtful. At each reporting date, the Company
generally determines the adequacy of allowance for impairment by evaluating all available information, and then records specific allowances
for those advances based on the specific facts and circumstances.

 Credit Loss

 The Company maintains expected loss methodology
that is referred to as the current expected credit loss methodology. The expected credit loss impairment model requires the entity to
recognize its estimate of expected credit losses for affected financial assets using an allowance for credit losses and requires consideration
of a broader range of reasonable and supportable information to inform credit loss estimates.

 The Company's accounts receivable and other
receivables which are included in prepaid expenses and other current assets line item in the consolidated balance sheets are within the
scope of ASC Topic 326. The Company measures expected credit losses of account receivables and other receivables, on a collective basis
when similar risk characteristics exist. The Company makes estimates of expected credit and collectability trends for the allowance for
credit losses based upon assessment of various factors, including historical experience, the age of the receivables, creditworthiness
of the customers and other debtors, current economic conditions, reasonable and supportable forecasts of future economic conditions, and
other factors that may affect its ability to collect from the customers and other debtors. The Company also provides specific provisions
for allowance when facts and circumstances indicate that the receivable is unlikely to be collected.

 Expected credit losses are included in general
and administrative expenses in the consolidated statements of operations and comprehensive loss. After all attempts to collect a receivable
have failed, the receivable is written off against the allowance.

 Property, Plant, and Equipment, Net

 Property, plant, and equipment are recorded at
cost, reduced by accumulated depreciation and amortization. Depreciation and amortization expense related to property, plant, and equipment
is computed using the straight-line method based on the estimated useful lives of the assets, or in the case of leasehold improvements,
the shorter of the initial lease term or the estimated useful life of the improvements. The useful life and depreciation method are reviewed
periodically to ensure that the method and period of depreciation are consistent with the expected pattern of economic benefits from items
of property, plant, and equipment. The estimated useful lives of depreciation and amortization of the principal classes of assets are
as follows:

 Useful life

 Land

 Infinite

 Property and buildings

 15 - 25 years

 Equipment and machinery

 3 - 5 years

 Office and electronic equipment

 3 - 5 years

 Automobiles

 5 years

 Leasehold improvements

 Lesser of useful life and lease term

 F- 10

 Expenditures for maintenance and repairs, which
do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments
that substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation or amortization of
assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of
operations and comprehensive loss.

 Construction in Progress

 Construction in Progress ("CIP") is
recorded at cost for property, plant, and equipment where the asset is in construction or development. CIP accumulates cost of construction
and transaction costs involved in the process of acquiring the materials for construction or development. The Company does not commence
depreciating the asset in CIP account because the asset has not yet been placed in service. Once an asset is placed in service, all costs
associated with the asset that are recorded in the CIP account are transferred to property, plant, and equipment for the asset.

 Impairment of Long-Lived Assets

 The Company assesses its long-lived assets, including
property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group
may not be recoverable. Factors which may indicate potential impairment include a significant underperformance relative to the historical
or projected future operating results or a significant negative industry or economic trend. Recoverability of assets to be held and used
is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by that
asset. If impairment is indicated, a loss is recognized for any excess of the carrying value over the estimated fair value of the asset.
The fair value is estimated based on the discounted future cash flows or comparable market values, if available. The Company did not record
any impairment loss during the fiscal years ended March 31, 2025 and 2024.

 Goodwill

 Goodwill represents the excess purchase price
paid over the fair value of the net assets of acquired companies. Goodwill is not amortized. As of March 31, 2025 and 2024, the carrying
amount of goodwill was $ 499,282. Goodwill is tested for impairment on an annual basis, or in interim periods if indicators of potential
impairment exist, based on the one reporting unit. The Company has the option to perform a qualitative assessment to determine whether
it is necessary to perform the quantitative goodwill impairment test. When performing the quantitative impairment test, the Company compares
the fair value of its only reporting unit with the carrying amounts. The Company would recognize an impairment charge for the amount by
which the carrying amount exceeds the reporting unit's fair value. The Company concluded that no impairment of its goodwill occurred
for the fiscal years ended March 31, 2025 and 2024.

 F- 11

 Revenue Recognition

 Substantially all of the Company's revenue
is derived from product sales, which consist of sales of the Company's customized ready-made outerwear for large brand-name retailers.
The Company considers purchase orders to be a contract with a customer. Contracts with customers are considered to be short-term when
the time between order confirmation and satisfaction of the performance obligations is equal to or less than one year. Virtually all of
the Company's contracts are short-term. The Company has minimal incremental costs of obtaining a contract, which are expensed when
incurred. The Company recognizes revenue for the transfer of promised goods to customers in an amount that reflects the consideration
to which the Company expects to be entitled in exchange for those goods. The Company typically satisfies its performance obligations in
contracts with customers upon shipment of the goods. Generally, payment is due from customers within 14 to 150 days of the invoice date.
The contracts do not have significant financing components. Shipping and handling costs associated with outbound freight from Jordan export
dock are not an obligation of the Company. Returns and allowances are not a significant aspect of the revenue recognition process as historically
they have been immaterial.

 The Company also derives revenue from rendering
cutting and making services to other apparel vendors who subcontract orders to the Company. Revenue is recognized when the service is
rendered. All of the Company's contracts have a single performance obligation satisfied at a point in time and the transaction price
is stated in the contract, usually as a price per unit. All estimates are based on the Company's historical experience, complete
satisfaction of the performance obligation, and the Company's best judgment at the time the estimate is made. Historically, sales
returns have not significantly impacted the Company's revenue.

 The Company does not have any contract assets
since the Company recognizes accounts receivable and revenue for the transfer of promised goods to customer in an amount that reflects
the consideration to which the Company expects to be entitled in exchange for those goods. The Company has an unconditional right to consideration
when the Company has satisfied its performance obligation and payment to the accounts receivable from customers is not contingent on a
future event. The Company had contract liabilities of $ 487,004 and $ 10,200 as of March 31, 2025 and 2024, respectively. As of March 31,
2025, $ 487,004 deferred revenue was expected to be recognized within fiscal 2026. As of March 31, 2024, $ 10,200 was received in advance,
and $ 6,923 of such advance was recognized as revenue for the fiscal year ended March 31, 2025.

 Segment

 The Company has one revenue generating reportable
geographic segment under ASC Topic 280 "Segment Reporting" and derives its sales primarily from its sales of customized ready-made
outerwear. Chief Operational Decision Makers ("CODM"), including Chief Executive Officer and Chief Financial Officer, are
making operating decisions and assessing performance as the source for determining the Company's reportable segments. CODM reviews
operation results on the consolidated revenue, gross profit, selling, general, and administrative expenses, interest expenses, share based
payment expense and net profit or loss regularly. In selling, general, and administration expense, CODM reviews staff payroll and other
related expenses, inventory export and related costs, depreciation and others major items. The Company believes disaggregation of revenue
by geographic region best depicts the nature, amount, timing, and uncertainty of its revenue and cash flows (see "Note 15—Segment
Reporting").

 Shipping and Handling

 Proceeds collected from customers for shipping
and handling costs are included in revenue. Shipping and handling costs are expensed as incurred and are included in operating expenses,
as a part of selling, general, and administrative expenses. Total shipping and handling expenses were $ 2,991,097 and $ 1,748,317 for the
fiscal years ended March 31, 2025 and 2024, respectively.

 Income and Sales Taxes

 The Company is subject to income taxes on an entity
basis on income arising in or derived from the tax jurisdiction in which each entity is domiciled. Jerash Holdings and Jerash Supplies
are incorporated/formed in the State of Delaware and are subject to federal income tax in the United States of America. Treasure Success,
Ever Winland, J&B, and Jerash Newtech are registered in Hong Kong and are subject to profit tax in Hong Kong. Jiangmen Treasure Success
is incorporated in China and is subject to corporate income tax in China. Jerash Garments, Jerash Embroidery, Chinese Garments, Paramount,
Jerash The First, MK Garments, and Kawkab Venus are subject to income tax in Jordan, unless an exemption is granted. In accordance with
Development Zone law, Jerash Garments and its subsidiaries were subject to corporate income tax in Jordan at a rate of 19 % plus a 1 % social
contribution starting from January 1, 2023 to December 31, 2023. Effective January 1, 2024, the income tax rate increased to 20 %, plus
a 1 % social contribution.

 F- 12

 Income and Sales Taxes (continued)

 Jerash Garments and its subsidiaries are subject
to a local sales tax of 16 % on purchases. Jerash Garments was granted a sales tax exemption from the Jordanian Investment Commission for
the period from June 1, 2015 to June 1, 2018, which allowed Jerash Garments to make purchases with no sales tax charge. The exemption
has been extended to February 5, 2026.

 The Company accounts for income taxes in accordance
with ASC 740, "Income Taxes," which requires the Company to use the asset and liability method of accounting for income taxes.
Under the asset and liability method, deferred income taxes are recognized for the tax consequences of temporary differences by applying
enacted statutory tax rates applicable to future years to differences between financial statement carrying amounts and the tax bases of
existing assets and liabilities and operating loss and tax credit carry forwards. Under this accounting standard, any changes in tax rates
and the impact on deferred income taxes are recognized in consolidated statements of operations and comprehensive loss in the period when
the new rates are enacted. A valuation allowance is recognized if it is more likely than not that some portion, or all of, a deferred
tax asset will not be realized.

 The Company applies the provisions of ASC 740-10-50,
"Accounting for Uncertainty in Income Taxes," which provides clarification related to the process associated with accounting
for uncertain tax positions recognized in the financial statements. Audit periods remain open for review until the statute of limitations
has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment
to the Company's liability for income taxes. Any such adjustment could be material to the Company's results of operations
for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of the date of this annual
report, the Company is current on all corporate, federal, and state tax returns. The Company's policy is to record interest and
penalties related to unrecognized tax benefits as income tax expense. There is significant uncertainty in tax position relating to income
taxes incurred for the fiscal years ended March 31, 2023 and 2022.

 Foreign Currency Translation

 The reporting currency of the Company is the U.S.
dollar ("US$" or "$"). The Company uses JOD in Jordan companies, HKD in Treasure Success, Ever Winland, J&B,
and Jerash Newtech, and Chinese Yuan ("CNY") in Jiangmen Treasure Success as the functional currency of each above-mentioned
entity. The assets and liabilities of the Company have been translated into US$ using the exchange rates in effect at the balance sheet
date, equity accounts have been translated at historical rates, and revenue and expenses have been translated into US$ using average exchange
rates in effect during the reporting period. Cash flows are also translated at average translation rates for the periods. Therefore, amounts
related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the
corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from
period to period are included as a separate component of accumulated other comprehensive income or loss. Transaction gains and losses
that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in
the consolidated statements of operations and comprehensive loss as incurred, and the total amount of transaction gains and losses were
immaterial as of the fiscal years ended March 31, 2025 and 2024.

 The value of JOD against US$ and other currencies
may fluctuate and is affected by, among other things, changes in Jordan's political and economic conditions. Any significant revaluation
of JOD, HKD, and CNY may materially affect the Company's financial condition in terms of US$ reporting. The following table outlines
the currency exchange rates that were used in creating the consolidated financial statements in this annual report:

 2025

 2024

 Period-end spot rate

 US$1=JOD 0.7090

 US$1=JOD 0.7090

 US$1=HKD 7.7790

 US$1=HKD 7.8243

 US$1=CNY 7.2572

 US$1=CNY 7.2190

 Average rate

 US$1=JOD 0.7090

 US$1=JOD 0.7090

 US$1=HKD 7.7925

 US$1=HKD 7.8240

 US$1=CNY 7.2150

 US$1=CNY 7.1501

 F- 13

 Stock-Based Compensation

 The Company measures compensation expense for
stock-based awards based upon the awards' initial grant-date fair value. The estimated grant-date fair value of the award is recognized
as expense over the requisite service period using the straight-line method.

 The Company estimates the fair value of stock
options using a Black-Scholes model. This model is affected by the Company's stock price on the date of the grant as well as assumptions
regarding a number of variables. These variables include the expected term of the option, expected risk-free rates of return, the expected
volatility of the Company's common stock, and expected dividend yield, each of which is more fully described below. The assumptions
for expected term and expected volatility are the two assumptions that significantly affect the grant date fair value.

 Expected Term: the expected term of a warrant or a stock option is the period of time that the warrant or a stock option is expected to be outstanding.

 Risk-free Interest Rate: the Company bases the risk-free interest rate used in the Black-Scholes model on the implied yield at the grant date of the U.S. Treasury zero-coupon issued with an equivalent term to the stock-based award being valued. Where the expected term of a stock-based award does not correspond with the term for which a zero-coupon interest rate is quoted, the Company uses the nearest interest rate from the available maturities.

 Expected Stock Price Volatility: the Company utilizes the expected volatility of the Company's common stock over the same period of time as the life of the warrant or stock option. When the Company's own stock volatility information is unavailable for such a period of time, the Company utilizes comparable public company volatility.

 Dividend Yield: Stock-based compensation awards granted prior to November 2018 assumed no dividend yield, while any subsequent stock-based compensation awards will be valued using the anticipated dividend yield.

 Earnings or Loss per Share

 The Company computes earnings per share ("EPS")
in accordance with ASC 260, "Earnings per Share" ("ASC 260"). ASC 260 requires companies with complex capital
structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding
for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per-share basis of potential common shares (e.g.,
convertible securities, options, warrants, and restricted stock units) as if they had been converted at the beginning of the periods presented,
or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease
loss per share) are excluded from the calculation of diluted EPS (See "Note 14–Loss per Share").

 Comprehensive Income or Loss

 Comprehensive income or loss consists of two
components, net income or loss and other comprehensive income or loss. The foreign currency translation gain or loss resulting from translations
of the financial statements expressed in JOD or HKD or CNY to US$ is reported in other comprehensive income or loss in the consolidated
statements of operations and comprehensive loss.

 F- 14

 Fair Value of Financial Instruments

 ASC 825-10 requires certain disclosures regarding
the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes
the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of
unobservable inputs. The three levels of inputs used to measure fair value are as follows:

 Level 1 - Quoted prices in active markets for identical assets and liabilities.

 Level 2 - Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

 Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

 The Company considers the recorded value of its
financial assets and liabilities, which consist primarily of cash, accounts receivable, other current assets, credit facilities, accounts
payable, accrued expenses, income tax payables, other payables and operating lease liabilities to approximate the fair value of the respective
assets and liabilities at March 31, 2025 and 2024 based upon the short-term nature of these assets and liabilities.

 Concentrations and Credit Risk

 Credit risk

 Financial instruments that potentially subject
the Company to significant concentrations of credit risk consist primarily of cash. As of March 31, 2025 and 2024, respectively, $ 4,883,906
and $ 6,547,090 of the Company's cash were on deposit at financial institutions in Jordan, where there currently is no rule or regulation
requiring such financial institutions to maintain insurance to cover bank deposits in the event of bank failure. As of March 31, 2025
and 2024, respectively, $ 246,394 and $ 518,485 of the Company's cash was on deposit at financial institutions in China. Cash maintained
in banks within China of less than CNY 0.5 million (equivalent to approximately $ 69,000) per bank is covered by "deposit insurance
regulation" promulgated by the State Council of the People's Republic of China. As of March 31, 2025 and 2024, respectively,
$ 9,871,227 and $ 6,682,404 of the Company's cash were on deposit at financial institutions in Hong Kong, which are insured by the
Hong Kong Deposit Protection Board subject to certain limitations. While management believes that these financial institutions are of
high credit quality, it also continually monitors their creditworthiness. As of March 31, 2025 and 2024, respectively, $ 48,274 and $ 267,954
of the Company's cash were on deposit in the United States and are insured by the Federal Deposit Insurance Corporation up to $ 250,000.

 Accounts receivable are typically unsecured and
derived from revenue earned from customers, and therefore are exposed to credit risk. The risk is mitigated by the Company's assessment
of its customers' creditworthiness and its ongoing monitoring of outstanding balances.

 Customer and vendor concentration risk

 The Company's sales are made primarily in
the United States. Its operating results could be adversely affected by U.S. government policies on importing business, foreign exchange
rate fluctuations, and changes in local market conditions. The Company has a concentration of its revenue and purchases with specific
customers and suppliers. For the fiscal years ended March 31, 2025 and 2024, two customers accounted for 65 % and 12 %, and 67 % and 12 %
of the Company's total revenue, respectively. As of March 31, 2025, four end-customers accounted for 24 %, 23 %, 16 %, and 11 %, respectively,
of the Company's total accounts receivable balance. As of March 31, 2024, four end-customers accounted for 23 %, 23 %, 10 %, and 10 %,
respectively, of the Company's total accounts receivable balance.

 F- 15

 For the fiscal years ended March 31, 2025 and
2024, the Company purchased approximately 10 % of its total purchase from one major garment supplier. As of March 31, 2025, accounts payable
to the Company's three major suppliers accounted for 24 %, 12 %, and 11 % of the total accounts payable balance, respectively. As of
March 31, 2024, accounts payable to the Company's two major suppliers accounted for 22 % and 13 % of the total accounts payable balance,
respectively.

 Risks and Uncertainties

 The principal operations of the Company are located
in Jordan. Accordingly, the Company's business, financial condition, and results of operations may be influenced by political, economic,
and legal environments in Jordan, as well as by the general state of the Jordanian economy. The Company's operations in Jordan are
subject to special considerations and significant risks not typically associated with companies in North America. These include risks
associated with, among others, the political, economic, and legal environment, foreign currency exchange, and the recent conflicts between
Israel and Hamas and between Israel and Iran. The Company's results may be adversely affected by changes in the political, regulatory,
and social conditions in Jordan. Although the Company has not experienced losses from these situations and believes that it is in compliance
with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future
results.

 Since the inception of the turmoil in the Middle
East, the Company has been closely monitoring the situation and keeping its customers informed. Production is ongoing as usual, with no
changes to customer orders or commitments, and the Company is currently mainly using the port in Aqaba, Jordan for import and export.
In order to provide flexibility, the Company has also been using the Port of Jebel Ali in the United Arab Emirates as an alternative route
for raw material import since December 2023. However, in the event of any potential impact on the ports, the Company has prepared a contingency
plan, approved by its major customers, to temporarily relocate production to alternate regions.

 NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS

 In December 2023, the Financial Accounting Standards
Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, "Income Taxes (Topic 740): Improvements
to Income Tax Disclosures," which modifies the rules on income tax disclosures to require disaggregated information about a reporting
entity's effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors
by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. The guidance is effective
for annual periods beginning after December 15, 2024, with early adoption permitted. ASU 2023-09 should be applied on a prospective basis,
but retrospective application is permitted. The Company is currently evaluating the potential impact of adopting this new guidance on
its consolidated financial statements and related disclosures.

 In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures
(Subtopic 220-40): Disaggregation of Income Statement Expenses.". This update requires that at each interim and annual reporting
period a report entity to disclose (1) the amounts of purchases of inventory, employee compensation, depreciation, amortization, and depletion
in commonly presented expense captions; (2) certain amounts that are already required to be disclosed under current GAAP in the same disclosure
as the other disaggregation requirements; (3) a qualitative description of the amounts remaining in relevant expense captions that are
not separately disaggregated quantitatively; and (4) the total amount of selling expenses and, in annual reporting periods, the definition
of selling expenses. In January 2025, the FASB issued ASU 2025-01, "Income Statement - Reporting Comprehensive Income - Expense
Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date.". This update clarifies that ASU 2024-03 is effective
for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December
15, 2027. Early adoption is permitted. The Company is currently evaluating the impact on its financial statements of adopting this guidance.

 F- 16

 NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS
(CONTINUED)

 In November 2023, the FASB issued ASU 2023-07,
"Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which is intended to improve reportable segment
disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The purpose of the amendment is to
enable investors to better understand an entity's overall performance and assess potential future cash flows. The guidance is effective
for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early
adoption permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. Based on
management's assessment, the Company has determined that it has only one operating segment as defined by ASC 280.

 Except for the above-mentioned pronouncements,
there are no new recently issued accounting standards that will have a material impact on the consolidated financial position, statements
of operations, and cash flows.

 NOTE 4 – ACCOUNTS RECEIVABLE, NET

 Accounts receivable consisted of the following:

 As of

 As of

 2025

 2024

 Trade accounts receivable

 $
 3,076,074

 $
 5,451,334

 Less: allowances for credit loss

 -

 33,821

 Accounts receivable, net

 $
 3,076,074

 $
 5,417,513

 NOTE 5 – INVENTORIES

 Inventories consisted of the following:

 As of

 As of

 2025

 2024

 Raw materials

 $
 13,101,508

 $
 14,664,823

 Work-in-progress

 2,888,090

 3,097,031

 Finished goods

 11,715,231

 9,479,719

 Total inventory

 $
 27,704,829

 $
 27,241,573

 As of March 31, 2025 and 2024, the Company had
$ nil inventory valuation reserve as the Company arranged its inventory based on 98.2 % and 99.9 % with actual orders received, respectively.
 1.8 % and 0.1 % of inventories held on hand were associated with garment sample and personal protective equipment orders, respectively.

 NOTE 6 – ADVANCE TO SUPPLIERS, NET

 Advance to suppliers consisted of the following:

 As of

 As of

2025

2024

 Advance to suppliers

 $

 6,644,194

 $

 3,086,137

 Less: allowances for impairment

 -

 -

 Advance to suppliers, net

 $

 6,644,194

 $

 3,086,137

 NOTE 7 – LEASES

 The Company had 42 operating leases for manufacturing
facilities and offices on March 31, 2025. Some leases include one or more options to renew, which is typically at the Company's
sole discretion. The Company regularly evaluates the renewal options, and, when it is reasonably certain of exercise, it will include
the renewal period in its lease term. New lease modifications result in measurement of the right of use ("ROU") assets and
lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.
ROU assets and related lease obligations are recognized at the commencement date based on the present value of remaining lease payments
over the lease term.

 All of the Company's leases are classified as operating leases
and primarily include office space and manufacturing facilities.

 F- 17

 NOTE 7 – LEASES (CONTINUED)

 Supplemental balance sheet information related to operating leases
was as follows:

 2025

 Operating lease right of use assets

 $
 850,172

 Operating lease liabilities – current

 $
 339,699

 Operating lease liabilities – non-current

 287,527

 Total operating lease liabilities

 $
 627,226

 The weighted average remaining lease terms and
discount rates for all of operating leases were as follows as of March 31, 2025:

 Remaining lease term and discount rate:

 Weighted average remaining lease term (years)

 1.6

 Weighted average discount rate

 6.25
 %

 During the fiscal years ended March 31, 2025 and
2024, the Company incurred total operating lease expenses of $ 2,385,398 and $ 2,561,861, respectively.

 The following is a schedule, by fiscal years, of maturities of lease
liabilities as of March 31, 2025:

 2026

 $
 573,970

 2027

 313,167

 2028

 9,282

 2029

 -

 2030

 -

 Thereafter

 -

 Total lease payments

 896,419

 Less: imputed interest

 ( 46,247
)

 Less: prepayments

 ( 222,946
)

 Present value of lease liabilities

 $
 627,226

 NOTE 8 – PROPERTY, PLANT, AND EQUIPMENT, NET

 Property, plant, and equipment, net consisted of the following:

 As of

 As of

 2025

 2024

 Land

 $
 2,200,334

 $
 2,200,334

 Property and buildings (1)

 21,158,457

 10,540,962

 Equipment and machinery

 13,540,863

 12,529,813

 Office and electric equipment

 1,484,093

 1,086,203

 Automobiles

 1,382,946

 1,333,823

 Leasehold improvements

 4,513,590

 4,380,202

 Subtotal

 44,280,283

 32,071,337

 Construction in progress (1)

 -

 9,550,778

 Less: Accumulated depreciation and amortization

 ( 19,256,602
)

 ( 16,624,019
)

 Property, plant, and equipment, net

 $
 25,023,681

 $
 24,998,096

 (1)
 In April 2022, the Company commenced a construction project to build a dormitory for employees. The construction is built on a land of 4,516 square meters (approximately 48,608 square feet) in Al Tajamouat Industrial City, Jordan, which was acquired by the Company in 2020. The dormitory building includes a kitchen to provide catering service for employees. Through March 31, 2025, the Company had spent approximately JOD 7.5 million (approximately $ 10.6 million) for the dormitory construction, dormitory kitchen, and improvement work. The dormitory and kitchen were fully completed and put in service in the second quarter and the fourth quarter of fiscal 2025, respectively. Construction cost has been transferred from construction in process to property and buildings.

 For the fiscal year ended March 31, 2025 and
2024, depreciation expenses were $ 2,681,709 and $ 2,539,736, respectively.

 F- 18

 NOTE 9 – EQUITY

 Preferred Stock

 The Company has 500,000 shares of preferred stock,
par value of $ 0.001 per share, authorized; none were issued and outstanding as of March 31, 2025 and 2024. The preferred stock can be
issued by the Board of Directors of Jerash Holdings (the "Board of Directors") in one or more classes or one or more series
within any class, and such classes or series shall have such voting powers, full or limited, or no voting powers, and such designations,
preferences, rights, qualifications, limitations, or restrictions of such rights as the Board of Directors may determine from time to
time.

 Common Stock

 The Company had 12,699,940 and 12,294,840 shares
of common stock outstanding as of March 31, 2025 and 2024, respectively.

 On February 9, 2023, the Board of Directors approved
the grant of 405,800 Restricted Stock Units ("RSUs") under the Jerash Holdings (US), Inc. 2018 Stock Incentive Plan (the "Plan")
to 37 executive officers and employees of the Company, with a two-year vesting period. 405,100 RSUs were vested and additional shares
were issued as of March 31, 2025.

 Statutory Reserve

 In accordance with the Corporate Law in Jordan,
Jerash Garments, Jerash Embroidery, Chinese Garments, Paramount, Jerash The First, and MK Garments and Kawkab Venus are required to make
appropriations to certain reserve funds, based on net income determined in accordance with generally accepted accounting principles of
Jordan. Appropriations to the statutory reserve are required to be 10 % of net income until the reserve is equal to 100 % of the entity's
share capital. This reserve is not available for dividend distribution. In addition, PRC companies are required to set aside at least
 10 % of their after-tax net profits each year, if any, to fund the statutory reserves until the balance of the reserves reaches 50 % of
their registered capital. The statutory reserves are not distributable in the form of cash dividends to the Company and can be used to
make up cumulative prior-year losses.

 Dividends

 During the fiscal year ended March 31, 2025, the
Board of Directors declared a cash dividend of $ 0.05 per share of common stock on February 5, 2025, November 8, 2024, August 5, 2024,
and May 21, 2024, respectively. Four cash dividends of $ 614,742 each were paid in full on February 25, 2025, November 29, 2024, August
23, 2024, and June 7, 2024, respectively.

 During the fiscal year ended March 31, 2024,
the Board of Directors declared a cash dividend of $ 0.05 per share of common stock on February 5, 2024, November 3, 2023, August 4, 2023,
and May 23, 2023, respectively. Four cash dividends of $ 614,742 each were paid in full on February 16, 2024, November 28, 2023, August
23, 2023, and June 9, 2023, respectively.

 F- 19

 NOTE 10 – STOCK-BASED COMPENSATION

 Warrants issued for services

 From time to time, the Company issues warrants
to purchase its common stock. These warrants are valued using the Black-Scholes model and using the volatility, market price, exercise
price, risk-free interest rate, and dividend yield appropriate at the date the warrants were issued. A total of 57,200 warrants expired
in fiscal 2024. As of March 31, 2025, the Company had no outstanding warrants.

 Stock Options

 On March 21, 2018, the Board of Directors adopted
the Plan, pursuant to which the Company may grant various types of equity awards. 1,484,250 shares of common stock of the Company were
reserved for issuance under the Plan. In addition, on July 19, 2019, the Board of Directors approved an amendment and restatement of the
Plan, which was approved by the Company's stockholders at its annual meeting of stockholders on September 16, 2019. The amended
and restated Plan increased the number of shares reserved for issuance under the Plan by 300,000, to 1,784,250, among other changes. On
March 31, 2025, the Company had 117,710 of shares remaining available for future issuance under the Plan.

 All stock option activities are summarized as
follows:

 Option to

 Weighted
 Average

 Acquire

 Exercise
 Price

 Stock options outstanding at March 31, 2023

 1,136,000

 $
 6.90

 Granted

 -

 -

 Exercised

 -

 -

 Expired

 ( 986,000
)

 7.00

 Stock options outstanding at March 31, 2024

 $
 6.25

 Option to

 Weighted

Average

 Acquire

 Exercise

Price

 Stock options outstanding at March 31, 2024

 $

 6.25

 Granted

 -

 -

 Exercised

 -

 -

 Expired

 -

 -

 Stock options outstanding at March 31, 2025

 $

 6.25

 All these outstanding options were fully vested
and exercisable. As of March 31, 2025, there were 150,000 stock options outstanding. The weighted average remaining life of the options
is 3.8 years.

 F- 20

 NOTE 10 – STOCK-BASED COMPENSATION (CONTINUED)

 Restricted Stock Units

 On February 9, 2023, the Board of Directors approved
the grant of 405,800 RSUs under the Plan to 37 executive officers and employees of the Company, with a two-year vesting period. 405,100
RSUs were vested and additional shares were issued as of March 31, 2025.

 On March 25, 2024, the Board of Directors approved
the grant of 915,040 RSUs under the Plan to 35 executive officers and employees of the Company, with a three-year vesting period. The
fair value of these RSUs on March 25, 2024 was $ 2,745,120, based on the market price of the Company's common stock as of the date
of the grant. As of March 31, 2025, there were $ 1,805,400 unrecognized stock-based compensation expenses to be recognized through March
2027 and 911,440 RSUs remained.

 RSU activities are summarized as follows:

 Number of

 Weighted-
 Average
 Grant
 Date Fair
 Value Per
 Share

 RSU outstanding at March 31, 2023

 405,100

 $
 4.78

 Granted

 915,040

 3.00

 Vested

 -

 -

 Forfeited

 -

 -

 RSU outstanding at March 31, 2024

 1,320,140

 $
 3.55

 Number of

 Weighted-
 Average
 Grant
 Date Fair
 Value Per
 Share

 RSU outstanding at March 31, 2024

 1,320,140

 $
 3.55

 Granted

 -

 -

 Vested

 ( 405,100
)

 4.78

 Forfeited

 ( 3,600
)

 3.00

 RSU outstanding at March 31, 2025

 911,440

 $
 3.00

 Total expenses related to the RSUs issued were
$ 1,758,146 and $ 986,048 for the fiscal years ended March 31, 2025 and 2024, respectively.

 NOTE 11 – RELATED PARTY TRANSACTIONS

 The relationship and the nature of related party
transactions are summarized as follow:

 Name of Related Party

 Relationship to the Company

 Nature of Transactions

 Yukwise Limited ("Yukwise")

 Wholly owned by the Company's President, Chief Executive Officer, Chairman, and a significant stockholder

 Consulting Services

 Multi-Glory Corporation Limited

("Multi-Glory")

 Wholly owned by a significant stockholder

 Consulting Services

 Consulting agreements

 On January 12, 2018, Treasure Success and Yukwise
entered into a consulting agreement, pursuant to which Mr. Choi will serve as Chief Executive Officer and provide high-level advisory
and general management services for $ 300,000 per annum. The agreement renews automatically for one-month terms. This agreement became
effective as of January 1, 2018. Total consulting fees under this agreement were $ 300,000 for the fiscal years ended March 31, 2025 and
2024.

 On January 16, 2018, Treasure Success and Multi-Glory
entered into a consulting agreement, pursuant to which Multi-Glory will provide high-level advisory, marketing, and sales services to
the Company for $ 300,000 per annum. The agreement renews automatically for one-month terms. The agreement became effective as of January
1, 2018. Total consulting fees under this agreement were $ 300,000 for the fiscal years ended March 31, 2025 and 2024.

 F- 21

 NOTE 12 – CREDIT FACILITIES

 Starting from May and October 2021, the Company
has participated in a financing program with two customers, in which the Company may receive early payments for approved sales invoices
submitted by the Company through the bank the customer cooperates with. In March 2024, the Company joined a supply chain financing program
with one additional customer. For any early payments received, the Company is subject to an early payment charge imposed by the customer's
bank, for which the rate is based on Secured Overnight Financing Rate ("SOFR") plus a spread. In certain scenarios, the Company
submits the sales invoice and receives payments prior to the shipment of the relative products. In that case, instead of recording the
cash receipts as a reduction to accounts receivables, the Company records the cash receipts as receipts in advance from a customer until
products are entitled to transfer. The Company records the early payment charge in interest expenses on the consolidated statements of
operations and comprehensive loss. For the fiscal years ended March 31, 2025 and 2024, the early payment charge was $ 1,482,263 and $ 1,122,019,
respectively.

 On January 12, 2022, DBS Bank (Hong Kong) Limited
("DBSHK") offered to provide a banking facility of up to $ 5.0 million to Treasure Success pursuant to a facility letter dated
January 12, 2022, which was amended pursuant to a facility letter dated January 4, 2024. Pursuant to the amended facility, DBSHK agreed
to finance cargo receipt, trust receipt, account payable financing, and certain types of import and export invoice financing up to an
aggregate of $ 5.0 million, with certain financial covenants. The DBSHK facility bears interest at 1.5 % per annum over Hong Kong Interbank
Offered Rate for HKD bills and 1.1 % to 1.3 % per annum over DBSHK's cost of funds for foreign currency bills. The facility is guaranteed
by Jerash Holdings and became available to the Company on June 17, 2022.

 As of March 31, 2025 and 2024, the Company had
$ 4,512,462 and $ nil outstanding amount under the DBSHK facility and the weighted average interest rate was 6.3 % and 6.6 %, respectively.
The DBSHK facility is reviewed annually.

 NOTE 13 – NONCONTROLLING INTEREST

 On March 20, 2023, Treasure Success and P.T. Eratex
(Hong Kong) Limited entered into a Joint Venture and Shareholders' Agreement, pursuant to which Treasure Success and P.T Eratex
(Hong Kong) Limited acquired 51 % and 49 % of the equity interest in J&B, respectively, on April 11, 2023.

 On October 10, 2023, Treasure Success and Newtech
Textile (HK) Limited entered into a Joint Venture and Shareholders' Agreement, pursuant to which Treasure Success and Newtech Textile
(HK) Limited acquired 51 % and 49 % of the equity interest in Jerash Newtech, respectively, on November 3, 2023.

 The net profit or (loss) generated by J&B
and Jerash Newtech was $ 20,469 and $( 3,243) for the fiscal year ended March 31, 2025, respectively. The net loss generated by J&B
and Jerash Newtech was $ 66,836 and $ 6,682 for the fiscal year ended March 31, 2024, respectively. Noncontrolling interest as of March
31, 2025 in J&B and Jerash Newtech was $ 8,645 and $ 44,136, respectively.

 NOTE 14 – LOSS PER SHARE

 The following table sets forth the computation
of basic and diluted loss per share for the fiscal years ended March 31, 2025 and 2024. As of March 31, 2025, 1,061,440 RSUs and stock
options were outstanding. For the fiscal year ended March 31, 2025, all RSUs and stock options were excluded from the EPS calculation
as the result would be anti-dilutive. For the fiscal year ended March 31, 2024, 1,470,140 RSUs and stock options were excluded from the
EPS calculation, respectively, as they were anti-dilutive.

 Fiscal Year Ended

 (in $000s except share and

 per share information)

 2025

 2024

 Numerator:

 Net loss attributable to Jerash Holdings (US), Inc.'s Common Stockholders

 $
 ( 848
)

 $
 ( 2,005
)

 Denominator:

 Denominator for basic earnings per share (weighted-average shares)

 12,329,021

 12,294,840

 Dilutive securities – unexercised warrants and options

 -

 -

 Denominator for diluted earnings per share (adjusted weighted-average shares)

 12,329,021

 12,294,840

 Basic and diluted loss per share

 $
 ( 0.07
)

 $
 ( 0.16
)

 F- 22

 NOTE 15 – SEGMENT REPORTING

 ASC 280, "Segment Reporting," establishes
standards for reporting information about operating segments on a basis consistent with the Company's internal organizational structure
as well as information about geographical areas, business segments and major customers in financial statements for details on the Company's
business segments. The amendment of ASC 280 requires incremental disclosures in annual and interims periods to reportable segments and
clarifies entities with a single reportable segment are also required to provide new disclosures in significant segment expenses, profit
and loss, assets, and other segment items for better understanding Company business activities and overall financial performance and assess
potential future cash flow for the business. The Company uses the "management approach" in determining reportable operating
segments. The management approach considers the internal organization and reporting used by the CODM for making operating decisions and
assessing performance as the source for determining the Company's reportable segments. CODM, including Chief Executive Officer and
Chief Financial Officer, reviews operation results on the consolidated revenue, gross profit, selling, general, and administrative expenses,
and net profit or loss. In selling, general, and administration expense, CODM reviews staff payroll and other related expenses, inventory
export and related costs, deprecation and other major items. Based on CODM's assessment, the Company has determined that it has
only one operating segment as defined by amended ASC 280. The following table summarizes the operating results reviewed by CODM.

 For the Fiscal Years Ended

 2025

 2024

 Revenue

 $
 145,812,006

 $
 117,187,340

 Less: Cost of goods sold

 123,492,561

 100,284,991

 Gross profit

 22,319,445

 16,902,349

 Other income

 424,108

 499,120

 Expenses

 Staff payroll and other related cost

 7,958,548

 7,824,345

 Inventory export and related cost

 2,991,097

 1,748,317

 Depreciation

 465,022

 455,760

 Other selling, general, and administrative expenses

 7,699,789

 6,552,834

 Total selling, general, and administrative expenses

 19,114,456

 16,581,256

 Stock-based compensation expenses

 Interest expenses

 1,719,760

 1,203,596

 Total expenses

 22,592,362

 18,770,900

 Net profit (loss) before provision for income taxes

 $
 151,191

 $
 ( 1,369,431
)

 Other selling, general, and administrative expenses
include consultancy fees and director remunerations, audit and professional fees, staff travelling and transportation expenses, rental
and general office expenses.

 The Company's major product is outerwear.
For the fiscal years ended March 31, 2025 and 2024, outerwear accounted for approximately 90.2 % and 90.1 % of the total revenue, respectively.
 The following table summarizes sales by geographic areas for the fiscal years ended March 31, 2025 and 2024, respectively.

 For the Fiscal Year Ended

 2025

 2024

 United States

 $
 128,576,537

 $
 102,520,412

 China

 7,673,257

 2,978,984

 Hong Kong

 1,267,870

 5,208,334

 Germany

 4,017,573

 2,919,845

 Jordan

 3,081,278

 2,179,492

 Others

 1,195,491

 1,380,273

 Total

 $
 145,812,006

 $
 117,187,340

 As of March 31, 2025 and 2024, there were 75.7 %
and 23.7 %, and 74.4 % and 24.9 %, of long-lived assets were located in Jordan and Hong Kong, respectively.

 F- 23

 NOTE 16 – COMMITMENTS AND CONTINGENCIES

 Commitments

 On August 28, 2019, Jiangmen Treasure Success
was incorporated under the laws of the People's Republic of China in Jiangmen City, Guangdong Province, China, with a total registered
capital of HKD 3 million (approximately $ 385,000). On December 9, 2020, shareholders of Jiangmen Treasure Success approved to increase
its registered capital to HKD 15 million (approximately $ 1.9 million). The Company's subsidiary, Treasure Success, as a shareholder
of Jiangmen Treasure Success, is required to contribute HKD 15 million (approximately $ 1.9 million) as paid-in capital in exchange for
 100 % ownership interest in Jiangmen Treasure Success. As of March 31, 2025, Treasure Success had made a capital contribution of HKD 10
million (approximately $ 1.3 million). Pursuant to the articles of incorporation of Jiangmen Treasure Success, Treasure Success is required
to complete the remaining capital contribution before December 31, 2029 as Treasure Success' available funds permit.

 Contingencies

 From time to time, the Company is a party to various
legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable
and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. The Company's
management does not expect any liability from the disposition of such claims and litigation individually or in the aggregate would not
have a material adverse impact on the Company's consolidated financial position, results of operations, and cash flows.

 In 2020, Jerash Garments had business with a personal
protective equipment ("PPE") customer (the "PPE Customer") to produce PPE products for them. The PPE products
were delivered in 2020 against some postdated checks issued by the PPE Customer. Delivery was also supported by delivery documents signed
by persons of the PPE Customer for inspection and receiving. The PPE Customer declined to honor the postdated checks. Jerash Garment brought
the case to the court and won in the Cassation Court. For the same PPE products, the PPE Customer filed another case claiming that certain
lengths/widths of the PPE products were inconsistent with the specifications. The Court of First Instance ruled in favor of the PPE Customer.
Jerash Garment was ordered to pay to the PPE Customer an amount of US$ 653,000. Jerash Garments filed an appeal, which is undergoing in
the Court of Appeal. Upon the judgment of the appeal, the parties involved may appeal further to the Court of Cassation where judgment
will be final.

 The management has consulted two external legal
advisors of Jordanian laws. Both opined that Jerash Garments has a strong position in the appeal as Jerash Garments will be allowed to
present witnesses with additional evidence including the proof of inspections and receipts in the appeal. Also, given the appeal process
mentioned above, the case would take a considerable long period of time to reach conclusion.

 The management, based on the legal opinion of
external advisors, the fact that the Court of Appeal and Cassation's previous favorable verdicts on Jerash Garments' lawful
right to collect proceeds for the PPE products, and the proceedings of the appeal, concluded that the chance of loss is remote. Therefore,
there was no accrual in the financial statements.

 NOTE 17 – INCOME TAX

 Jerash Garments, Jerash Embroidery, Chinese Garments,
Paramount, Jerash the First, MK Garments, and Kawkab Venus are subject to the regulations of the Income Tax Department in Jordan. Effective
January 1, 2019, the Jordanian government reclassified the area where Jerash Garments and its subsidiaries are to a Development Zone.
In accordance with the Development Zone law, Jerash Garments and its subsidiaries were subject to income tax at an income tax rate of
 19 % or 20 % plus a 1 % social contribution between January 1, 2023 and December 31, 2023. Effective January 1, 2024, the income tax rate
increased to 20 %, plus a 1 % social contribution.

 On December 22, 2017, the U.S. Tax Cuts and Jobs
Act (the "Tax Act") was enacted. The Tax Act imposed a tax on previously untaxed accumulated earnings and profits ("E&P")
of foreign subsidiaries (the "Toll Charge"). The Toll Charge is based in part on the amount of E&P held in cash and other
specific assets as of December 31, 2017. The Toll Charge can be paid over an eight-year period, starting in 2018, and will not accrue
interest. As of March 31, 2025, the Company has one year of installments remaining with total amounting to $ 417,450. Additionally, under
the provisions of the Tax Act, for taxable years beginning after December 31, 2017, the foreign earnings of Jerash Garments and its subsidiaries
are subject to U.S. taxation at the Jerash Holdings level under the new Global Intangible Low-Taxed Income ("GILTI") regime.

 F- 24

 NOTE 17 – INCOME TAX (CONTINUED)

 The provision for income taxes consisted of the
following:

 For the fiscal years ended

 2025

 2024

 Domestic and foreign components of income (loss) before income taxes

 Domestic

 $
 ( 1,075,059
)

 $
 ( 2,189,825
)

 Foreign

 1,226,250

 820,394

 Total

 $
 151,191

 $
 ( 1,369,431
)

 For the fiscal years ended

 2025

 2024

 Provision (benefit) for income taxes

 Current tax:

 U.S. federal

 $
 395,067

 $
 —

 U.S. state and local

 Foreign

 436,854

 676,201

 Total Current Tax

 832,671

 676,951

 Deferred tax:

 U.S. federal

 158,449

 ( 4,456
)

 Total deferred tax

 158,449

 ( 4,456
)

 Total tax

 $
 991,120

 $
 672,495

 Effective tax rates

 655.5
 %

 - 49.1
 %

 F- 25

 NOTE 17 – INCOME TAX (CONTINUED)

 A reconciliation of the effective tax rate was as follows:

 For the fiscal years ended

 2025

 2024

 Tax at statutory rate

 $
 31,750

 $
 ( 287,581
)

 State tax, net of federal benefit

 Non-deductible expenses

 ( 57,723
)

 202,789

 Non-taxable income

 —

 —

 Global Intangible Low-Taxed Income, net

 —

 527,733

 Subpart F

 549,151

 —

 Tax Credits

 ( 52,724
)

 ( 274,877
)

 Foreign tax rate differential

 179,343

 503,917

 Foreign tax attributes

 190,817

 ( 793,383
)

 Change in Valuation Allowance

 ( 190,817
)

 793,383

 Provision to return adjustments

 165,440

 ( 79
)

 Uncertain Tax Provision: Amended tax returns

 175,290

 —

 Total

 $
 991,120

 $
 672,495

 Schedule
of Unrecognized Tax Benefits was as follows:

 Fiscal 2025

 Beginning balance

 $

 Additions for tax positions of prior years (Subpart F income inclusion on amended federal tax returns)

 Fiscal Year(s) Affected: FY 2022

 80,048

 Fiscal Year(s) Affected: FY 2023

 95,242

 Reductions for tax positions of prior years

 —

 Loss before provision for income taxes

 $
 175,290

 The Company estimates $ 241,643 of unrecognized tax provision, including penalties and interest, may be recognized in the next 12 months.

 The Company's deferred tax assets and liabilities
as of March 31, 2025 and 2024 consisted of the following:

 Deferred tax assets/ (liabilities)

 As of
 2025

 As of
 2024

 Stock-based compensation

 $
 —

 $
 158,557

 Deferred tax liabilities

 ( 120
)

 ( 228
)

 Net operating losses carried forward

 1,975,215

 2,166,032

 Less: valuation allowance

 ( 1,975,215
)

 ( 2,166,032
)

 Deferred tax (liabilities) assets, net

 $
 ( 120
)

 $
 158,329

 Deferred tax assets are reduced by a valuation
allowance when it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. As of March
31, 2025 and 2024, the allowance for deferred tax assets was $ 1,975,215 and $ 2,166,032, respectively. The allowance is provided for net
operating loss of foreign subsidiaries.

 As of March 31, 2025, the Company had cumulative
book-tax basis differences in its foreign subsidiaries of approximately $ 17.6 million. The Company has not recorded a U.S. deferred tax
liability for the book-tax basis in its foreign subsidiaries as these amounts continue to be indefinitely reinvested in foreign operations.
The reversal of this temporary difference would occur upon the sale or liquidation of the Company's foreign subsidiaries, and the
estimated impact of the reversal of this temporary difference is approximately $ 3.6 million. As of March 31, 2025 and 2024, there were
$ 175,290 and $ nil uncertain tax positions, respectively.

 The Company files income tax returns in the U.S.
federal, state and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S.
income tax examinations by tax authorities for years prior to April 1, 2018.

 NOTE 18 – SUBSEQUENT EVENTS

 On May 20, 2025, the Board of Directors approved
the payment of a dividend of $ 0.05 per share, payable on June 6, 2025, to stockholders of record as of the close of business as of May
30, 2025.

 F- 26

 Item 9. Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure.

 There has been no change in independent accountants
for our Company during the two most recent fiscal years or any subsequent interim period except for the change in independent accountants
from Marcum LLP to CBIZ CPAs P.C., resulted from the acquisition of Marcum LLP by CBIZ CPAs P.C., as previously reported in our Current
Report on Form 8-K filed with the SEC on March 27, 2025. There have been no disagreements of the type required to be disclosed by Item
304(b) of Regulation S-K.

 Item 9A. Controls and Procedures.

 Disclosure Controls and Procedures

 Disclosure controls and procedures (as defined
in Exchange Act Rule 15d-15(e)) are designed with the objective of ensuring that information required to be disclosed in our reports filed
under the Exchange Act, such as this annual report, is recorded, processed, summarized, and reported within the time periods specified
in the SEC's rules and forms. Disclosure controls and procedures are also designed with the objective of ensuring that such information
is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate,
to allow timely decisions regarding required disclosure.

 Our Chief Executive Officer (principal executive
officer) and Chief Financial Officer (principal financial officer), based on their evaluation of our disclosure controls and procedures
as of March 31, 2025, concluded that our disclosure controls and procedures were still ineffective.

 Internal Control Over Financial Reporting

 Management's annual report on internal
control over financial reporting

 Our management is responsible for establishing
and maintaining adequate internal control over our financial reporting, as defined in Rule 13a-15(f) under the Exchange Act. Internal
control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of our financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Because
of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any
evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.

 Our management, with the participation of our
Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer), has assessed the effectiveness
of our internal control over financial reporting as of March 31, 2025. In making this assessment, management used the criteria set forth
in the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control—Integrated Framework (2013).

 Based on the assessment using those criteria,
management concluded that, as of March 31, 2024, our internal control over financial reporting was not effective because there were ineffective
information technology general controls in the areas of privileged user access and the review of user access over certain information
technology systems that support our financial reporting processes.

 Although some remedial actions have been implemented
to address the issues, in the assessment in fiscal 2025, the management concluded that, as of March 31, 2025, our internal control over
financial reporting was still ineffective as some of the control deficiencies surrounding the information technology environment were
not sufficiently remediated.

 The Company plans to put in more resources to
strengthen the internal control to duly address the above material control weaknesses. Details of implementation will be provided in the
quarterly report on Form 10-Q for the quarter ending June 30, 2025.

 Attestation report of the registered public
accounting firm

 This Annual Report on Form 10-K does not include
an attestation report of our registered public accounting firm due to an exemption for "non-accelerated filers."

 Changes in internal control over financial
reporting

 There were no changes in our internal control
over financial reporting (as the term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended March
31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 Item 9B. Other Information.

 During the three months ended March 31, 2025,
no director or officer of the Company adopted, modified, or terminated a "Rule 10b5-1 trading agreement; or a "non-Rule 10b5-1
trading agreement' as each term is defined in Item 408(a) of Regulation S-K.

 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent
Inspections.

 Not Applicable.

 Item 10. Directors, Executive Officers and Corporate Governance.

 In response to this Item, the information set
forth in our Proxy Statement for our 2025 Annual Meeting of Stockholders (the "2025 Proxy Statement") to be filed within 120
days following the end of our fiscal year, under the headings "Proposal No. 1—Election of Directors," "Our Executive
Officers," "Section 16(a) Compliance," and "Corporate Governance Practices and Policies" is incorporated
herein by reference.

 Item 11. Executive Compensation.

 In response to this Item, the information set
forth in the 2025 Proxy Statement under the headings "Executive Compensation" and "Corporate Governance Practices and
Policies" is incorporated herein by reference.

 Item 12. Security Ownership of Certain Beneficial
Owners and Management and Related Stockholder Matters.

 The following table provides information regarding
shares outstanding and available for issuance under our existing equity compensation plans as of June 25, 2025.

 Equity Compensation Plan Information

 (a)

 (b)

 (c)

 Plan Category

 Number of
 securities to
 be issued
 upon
 exercise of outstanding options, warrants and

rights

 Weighted-
 average

 exercise
 price of
 outstanding
 options,
 warrants and
 rights

 Number of
 securities
 remaining
 available for
 future
 issuance
 under equity
 compensation
 plans
 (excluding
 securities
 reflected in
 column (a))

 Equity compensation plans approved by security holders

 $
 6.25

 117,710

 Equity compensation plans not approved by security holders

 -

 $
 -

 -

 Total

 $
 6.25

 117,710

 For additional information concerning our equity
compensation plans, see the discussion in "Note 10—Stock-Based Compensation."

 The remainder of the information required by this
Item is set forth in the 2025 Proxy Statement under the headings "Executive Compensation—Equity Compensation Plan Information"
and "Security Ownership of Certain Beneficial Owners and Management" and is hereby incorporated herein by reference.

 Item 13. Certain Relationships and Related Transactions, and Director
Independence.

 In response to this Item, the information set
forth in the 2025 Proxy Statement under the headings "Certain Relationships and Related Party Transactions" and "Corporate
Governance Practices and Policies—Board and Committee Independence" is incorporated herein by reference.

 Item 14. Principal Accounting Fees and Services.

 In response to this Item, the information set
forth in the 2025 Proxy Statement under the heading "Matters Relating to the Independent Registered Public Accounting Firm"
is incorporated herein by reference.

 Item 15. Exhibit and Financial Statement Schedules

 (a) Financial Statements

 We have filed the financial statements in Item
8. Financial Statements and Supplementary Data as a part of this Annual Report on Form 10-K.

 (b) Exhibits

 The following is a list of all exhibits filed
or incorporated by reference as part of this Annual Report on Form 10-K.

 Exhibit

Number

 Description

 Location

 3.1

 Amended and Restated Certificate of Incorporation

 Incorporated herein by reference to Exhibit 3.1 to the Post-Effective Amendment No. 1 to Form S-1, filed with the SEC on September 19, 2018

 3.2

 Amended and Restated Bylaws

 Incorporated herein by reference to Exhibit 3.1 to the Form 8-K, filed with the SEC on July 24, 2019

 4.1

 Specimen Certificate for Common Stock

 Incorporated herein by reference to Exhibit 4.1 to the Form S-1, filed with the SEC on June 27, 2017

 4.2

 Description of Securities

 Incorporated herein by reference to Exhibit 4.1 to the Form 10-K, filed with the SEC on June 28, 2019

 10.1+

 Unified Work Contract for Migrant Workers, dated May 1, 2023, by and between Jerash Garments and Fashions Manufacturing Company Limited and Wei Yang

 Incorporated herein by reference to Exhibit 10.1 to the Annual Report on Form 10-K, filed with the SEC on June 28, 2023

 10.2+

 Consulting Agreement, dated January 12, 2018, by and between Treasure Success and Yukwise Limited

 Incorporated herein by reference to Exhibit 10.1 to the Form 8-K, filed with the SEC on January 16, 2018

 10.3+

 Consulting Agreement, dated January 16, 2018, by and between Treasure Success and Multi-Glory Corporation Ltd.

 Incorporated herein by reference to Exhibit 10.18 to the Form S-1, filed with the SEC on January 18, 2018

 10.4+

 Amended and Restated 2018 Stock Incentive Plan

 Incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K, filed with the SEC on September 19, 2019

 10.5+

 Form of Option Award Notice and Agreement (Employee)

 Incorporated herein by reference to Exhibit 10.2 to the Current Report on Form 8-K, filed with the SEC on March 23, 2018

 10.6+

 Form of Option Award Notice and Agreement (Consultant)

 Incorporated herein by reference to Exhibit 10.3 to the Current Report on Form 8-K, filed with the SEC on March 23, 2018

 10.7+

 Employment Agreement dated November 27, 2019 by and between Jerash Holdings and Gilbert K. Lee

 Incorporated herein by reference to Exhibit 10.1 to the Form 8-K, filed with the SEC on December 2, 2019

 10.8

 Director Offer Letter dated June 15, 2020 by and between Jerash Holdings and Bill Korn

 Incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K, filed with the SEC on June 15, 2020

 10.9+

 Option Award Agreement dated November 27, 2019 by and between Jerash Holdings and Gilbert K. Lee

 Incorporated herein by reference to Exhibit 10.2 to the Form 8-K, filed with the SEC on December 2, 2019

 10.10+

 Form of Indemnification Agreement

 Incorporated herein by reference to Exhibit 10.2 to the Form 8-K, filed with the SEC on June 15, 2020

 10.11

 Factory Lease Agreement dated January 1, 2021 between Jiangmen Treasure Success and Guangdong Huadian Technology Industry Co., Ltd.

 Incorporated herein by reference to Exhibit 10.20 to the Annual Report on Form 10-K, filed with the SEC on June 23, 2021

 10.12+

 Letter of Employment dated April 22, 2022 between Treasure Success and Choi Lin Hung

 Incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K, filed with the SEC on April 28, 2022

 10.13+

 Letter of Employment dated April 22, 2022 between Treasure Success and Ng Tsze Lun

 Incorporated herein by reference to Exhibit 10.2 to the Current Report on Form 8-K, filed with the SEC on April 28, 2022

 10.14

 Facility Letter dated January 12, 2022 by and between Treasure Success and DBS Bank (Hong Kong) Limited

 Incorporated herein by reference to Exhibit 10.18 to the Annual Report on Form 10-K, filed with the SEC on June 27, 2022

 10.15

 Joint Venture and Shareholder's Agreement dated March 20, 2023 by and between Treasure Success and P.T. Eratex

 Incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K, filed with the SEC on March 21, 2023

 10.16

 The Shareholders' Agreement dated October 10, 2023 by and between Treasure Success and Newtech Textile (HK) Limited

 Incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K, filed with the SEC on October 12, 2023

 10.17

 Banking Facilities dated January 4, 2024, by and between Treasure Success and DBSHK

 Incorporated herein by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q, filed with the SEC on February 8, 2024

 14.1

 Code of Ethics

 Incorporated herein by reference to Exhibit 14.1 to the Annual Report on Form 10-K, filed with the SEC on June 29, 2020

 16.1

 Letter, dated March 27, 2025, from Marcum LLP addressed to the SEC

 Incorporated herein by reference to Exhibit 16.1 to the Current Report on Form 8-K, filed with the SEC on March 27, 2025

 19.1

 Insider Trading Policy

 Incorporated herein by reference to Exhibit 19.1 to the Annual Report on Form 10-K, filed with the SEC on June 28, 2024

 21.1

 Subsidiaries of Jerash Holdings (US), Inc.

 Incorporated herein by reference to Exhibit 21.1 to the Annual Report on Form 10-K, filed with the SEC on June 28, 2024

 23.1

 Consent of CBIZ CPAs P.C.

 23.2

 Consent of Marcum LLP

 31.1

 Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 31.2

 Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 32.1*

 Certification of Principal Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 Furnished herewith

 32.2*

 Certification of Principal Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 Furnished herewith

 97.1

 Compensation Recovery Policy

 Incorporated herein by reference to Exhibit 97.1 to the Annual Report on Form 10-K, filed with the SEC on June 28, 2024

 101.INS

 101.SCH

 101.CAL

 101.DEF

 101.LAB

 101.PRE

 +

 Indicates a management contract or compensatory plan, contract, or arrangement.

 *

 In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release No. 34-47986, the certifications furnished in Exhibits 32.1 and 32.2 herewith are deemed to accompany this Form 10-K and will not be deemed filed for purposes of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filings under the Securities Act or the Exchange Act.

 Item 16. Form 10-K Summary.

 None.

 SIGNATURES

 Pursuant to the requirements of Section 13 or
15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

 JERASH HOLDINGS (US), INC.

 Date: June 25, 2025

 By:

 /s/ Gilbert K. Lee

 Name:

 Gilbert K. Lee

 Title:

 Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

 Pursuant to the requirements of the Securities
Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated
below on June 25, 2025.

 Signature

 Title

 /s/ Choi Lin Hung

 Chairman, Chief Executive Officer, President, and Treasurer

 Choi Lin Hung

 (Principal Executive Officer)

 /s/ Gilbert K. Lee

 Chief Financial Officer (Principal Financial Officer and

 Gilbert K. Lee

 Principal Accounting Officer)

 /s/ Wei Yang

 Vice President, Secretary, and Director

 Wei Yang

 /s/ Bill Korn

 Director

 Bill Korn

 /s/ Ibrahim H. Saif

 Director

 Ibrahim H. Saif

 /s/ Mak Chi Yan

 Director

 Mak Chi Yan

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