1. The strength of the brands the company use are crucial to its success. Any reputational damage to the brand, name or logo could have an adverse effect on its financial condition, cash flows and results of operations.
2. Its inability to effectively market the company products, or any deterioration in public perception of its brand, could affect consumer footfall and consequently adversely impact its business, financial condition, cash flows and results of operations.
3. Its inability to identify market trends and customer demand accurately and maintain an optimal level of inventory in its stores may impact the company operations adversely.
4. Its business is primarily concentrated in Maharashtra and the company is significantly dependent on top five of its stores located in Maharashtra for revenue generation. Any adverse development affecting such region or stores may have an adverse effect on its business, prospects, financial condition and results of operations.
5. The Company requires significant amounts of working capital for continued growth. Its inability to meet the company working capital requirements, on commercially acceptable terms, may have an adverse impact on its business,
financial condition and results of operations.
6. Competition in the Indian retail jewellery industry is significant. The company operates in highly competitive and fragmented markets, and competition in these markets is based primarily on market trends, pricing and customer preferences.
The players in the retail jewellery sector in India often offer their products at highly competitive prices and many of them are well established in their local markets.
7. If the company is unable to effectively manage or expand its retail network and operations or pursue its growth strategy, the company new stores may not achieve its expected levels of profitability which may adversely affect its business prospects, financial condition and results of operations.
8. The company is dependent on third party artisans for the production and manufacturing of all of its products. Any disruptions at such third-party production or manufacturing facilities, or failure of such third parties to adhere to the relevant quality standards may have a negative effect on its reputation, business and financial condition.
9. Its manufacturing work is done by skilled craftsmen who does not work exclusively for it which exposes the company to any risks/adverse developments affecting the skilled craftsmen.
10. Its income and sales are subject to seasonal fluctuations and lower income in a peak season may have a disproportionate effect on its results of operations.